Human Resources and Social Development Canada

Human Resources and Social Development Canada

October 13, 2006 13:21 ET

HRSDC: EI Commission Releases Chief Actuary's Report

OTTAWA, ONTARIO--(CCNMatthews - Oct. 13, 2006) - The Canada Employment Insurance Commission today released the Report of the Chief Actuary to the Employment Insurance Commission on the EI Premium Rate and Maximum Insurable Earnings. The report will be considered by the EI Commission in its determination of the Employment Insurance (EI) premium rate for 2007. The Report is available on Human Resources and Social Development Canada's Web site at www.hrsdc.gc.ca.

Under the 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 shift 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 2007. 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 2007, the legislative requirement that the 2007 premium rate shall not exceed $1.95 and any public input. The rate will be set by the EI Commission no later than November 14, 2006.

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