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
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.
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
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
The CEIFB is responsible for:
Setting the EI premium rate for the upcoming year in a transparent
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:
Telephone: (613) 943-7344