Canada Employment Insurance Commission

Canada Employment Insurance Commission

October 14, 2008 17:25 ET

Employment Insurance Commission Releases Chief Actuary's Report

GATINEAU, QUEBEC--(Marketwire - Oct. 14, 2008) - The Canada Employment Insurance (EI) Commission today released the Report of the Chief Actuary to the EI Commission on the EI Premium Rate and Maximum Insurable Earnings. The report will be considered by the EI Commission in its determination of the EI premium rate for 2009. The Report is available on Human Resources and Social Development Canada's Web site at www.hrsdc.gc.ca.

Under the premium rate-setting process, the Chief Actuary for Human Resources and Social Development Canada (HRSDC) is required to annually calculate, on a forward-looking basis, the estimated break-even rate for the coming year based on the most current forecast values of the relevant economic variables provided by the Minister of Finance.

To ensure premium rate stability and limit any negative impact on the business cycle, the maximum yearly change in the employee premium rate is limited to 15 cents (this equates to a maximum change of the employer premium of 21 cents). The Chief Actuary is required to provide a public report of the "break-even" rate to the EI Commission by no later than October 14 of each year.

The EI Commission will soon begin the formal process of setting the EI premium rate for 2009. In doing so, the EI Commission will take into account the Chief Actuary's report, the principle that the premium rate should generate just enough revenue to cover the expected payments to be made during 2009 and any public input. A decision on the rate will be taken by the EI Commission on or before November 14, 2008.

In Budget 2008, the Government implemented changes to the governance and management of the EI Account by creating the Canada Employment Insurance Financing Board (CEIFB). Starting in 2009, the CEIFB will be responsible for implementing a new EI premium rate-setting mechanism. To learn more about the CEIFB visit Human Resources and Social Development Canada's Web site at www.hrsdc.gc.ca.

This news release is available in alternative formats upon request.

Report of the Chief Actuary to the Employment Insurance Commission on the Employment Insurance Premium Rate and Maximum Insurable Earnings: http://www.hrsdc.gc.ca/en/employment/ei/premium_rate/2009/index.shtml

Contact Information

  • Human Resources and Social Development Canada
    Media Relations Office
    819-994-5559