Employment Insurance Regulations

62 (1) Subject to subsection (2), an employer's premium rate fixed under section 68 of the Act shall be reduced, in respect of insured persons employed by that employer who are covered by a plan that meets the requirements of section 63, 64, 65 or 66 and is a qualifying plan pursuant to subsection 67(3), by the percentage by which

• (a) the experience cost ratio calculated under subsection (3) in respect of each category of insured persons covered by such a plan

is less than

• (b) the first payer cost ratio calculated under subsection (4) for all insured persons.

(2) An employer's premium rate fixed under section 68 of the Act shall not be reduced in respect of

• (a) an insured person who is not covered under a plan;

• (b) an insured person who is covered under a plan that does not meet the requirements of section 63, 64, 65 or 66; or

• (c) an insured person whose eligibility to use days of paid sick leave is deferred under a plan that meets the requirements of section 65 or 66.

(3) For the purpose of determining the experience cost ratio for a year, the Commission shall, in respect of each category of insured persons covered by plans that meet the requirements of section 63, 64, 65 or 66, divide

• (a) the average cost of benefits paid under section 12 and paragraph 18(1)(b) of the Act to insured persons whose interruption of earnings was by reason of illness, injury or quarantine

by

• (b) the average amount of the yearly insurable earnings for the insured persons,

with both averages being taken over the three years ending concurrently with the second year preceding the year for which the calculation is made.

(4) For the purpose of determining the first payer cost ratio for a year, the Commission shall, in respect of all insured persons, divide

• (a) the average cost of benefits that would have been paid under section 12 and paragraph 18(1)(b) of the Act to insured persons whose interruption of earnings was by reason of illness, injury or quarantine, as estimated by the Commission, if benefits payable under a group sickness or disability wage-loss indemnity plan or paid sick leave plan were disregarded for the purpose of determining benefits otherwise payable to persons under the Act,

by

• (b) the average of the yearly insurable earnings for the insured persons,

with both averages being taken over the three years ending concurrently with the second year preceding the year for which the calculation is made.