The Canada Employment Insurance Financing Board Publishes its 2012 Employment Insurance Premium Rate Report

OTTAWA, Nov. 14, 2011 /CNW/ - The Canada Employment Insurance Financing Board (CEIFB) published its Employment Insurance (EI) premium rate report for 2012 today. Along with the 2012 EI rates, the report includes forecasts for the cumulative deficit for the EI Operating Account.

The CEIFB Board of Directors has set the 2012 EI premium rate for residents of all provinces, with the exception of Quebec, at $1.83 per $100 of insurable earnings. The EI premium rate for Quebec residents is set at $1.47.

The CEIFB Chief Actuary reports that the 2012 break-even rate for residents of all provinces with the exception of Quebec is forecast to be $2.56 per $100 of insurable earnings. After applying the premium reduction for residents of a province with a provincial parental leave plan, the break-even rate for Quebec residents is forecast to be $2.20 per $100 of insurable earnings.

For the first time since its establishment, the EI Operating Account is expected to break even on an annual basis in 2012. This would maintain the cumulative deficit at $8.8 billion as at December 31, 2012.

Background

The CEIFB was established as a Crown corporation in 2008, operating at arm's length from the Government of Canada to improve the governance and management of EI financing by providing a stewardship role for the financing of the program.

David Brown, Chair of the CEIFB noted that "Again this year Canadians have full disclosure of the financial position of the EI Operating Account and access to information that describes the decision-making process for the EI premium rate. The CEIFB Chief Actuary Report also made available on our website today provides further details on the methodology and calculations. Moreover, the CEIFB expects the deficit in the EI Operating Account to be stabilized for 2012 at approximately the same level that is currently forecast for its position at the end of December 2011."

The Board of Directors of the CEIFB is required to set the premium rate based on a detailed analysis of the break-even rate provided by the Chief Actuary and in accordance with certain legislated limits on the annual maximum increase or decrease in EI premium rates. Recently the Government used its authority under the CEIFB Act to amend the annual maximum increase in EI premium rate.

On November 8, 2011, the Government announce that it would limit the increase of the EI premium rate to 5 cents per $100 of insurable earning in 2012.

About the Canada Employment Insurance Financing Board

The Canada Employment Insurance Financing Board is a Crown corporation established in 2008 by the CEIFB Act. It reports to Parliament through the Minister of Human Resources and Skills Development.

The CEIFB is managed by a representative board of seven independent directors, including a chairperson, with the necessary skills and expertise to effectively carry out the organization's mandate. The Board of Directors is appointed by the Governor in Council, on the recommendation of the Minister of Human Resources and Skills Development from a list of nominees established by an independent nominating committee.

The CEIFB is responsible for:

  • Setting the EI premium rate for the upcoming year in a transparent fashion,
  • Managing any surplus EI premium funds for the benefit of the EI program,
  • Reporting publicly on the financing status of the EI program, and
  • Once established, maintaining a $2 billion reserve to help ensure stability of the premium rate.

For more information on the CEIFB and copies of the reports of the Board of Directors and the Chief Actuary, please visit www.ceifb-ofaec.ca

SOURCE Canada Employment Insurance Financing Board

For further information:

Phil Charko
Executive Director
Telephone: (613) 943-7344
E-mail: phil.charko@ceifb-ofaec.ca

Profil de l'entreprise

Canada Employment Insurance Financing Board

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.