Budget Implementation Act, 2008 (S.C. 2008, c. 28)
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Assented to 2008-06-18
Transitional Provisions
Marginal note:Application
122. For the purposes of paragraph 4(a) of the Canada Employment Insurance Financing Board Act, the Board sets the premium rate under section 66 of the Employment Insurance Act, as enacted by section 127.
Marginal note:Application
123. For the purposes of subsection 10(6) of the Canada Employment Insurance Financing Board Act, the nominating committee does not have to consult the board of directors until the first seven directors have been appointed by the Governor in Council.
1996, c. 23Amendments to the Employment Insurance Act
Marginal note:2001, c. 5, s. 2
124. Subsections 3(1) and (2) of the Employment Insurance Act are replaced by the following:
Marginal note:Commission to assess adjustment
3. (1) The Commission shall monitor and assess the impact and effectiveness, for individuals, communities and the economy, of the benefits and other assistance provided under this Act, including
(a) how the benefits and assistance are utilized by employees and employers, and
(b) the effect of the benefits and assistance on the obligation of claimants to be available for and to seek employment and on the efforts of employers to maintain a stable workforce.
Marginal note:Report
(2) The Commission shall report to the Minister on its assessment annually no later than March 31 following the end of a year. The Commission shall make any additional reports at any other times, as the Minister may request.
125. The Act is amended by adding the following before the heading “Premiums” before section 65.3:
Interpretation
Definition of “Board”
65.21 In this Part, “Board” means the Canada Employment Insurance Financing Board established by subsection 3(1) of the Canada Employment Insurance Financing Board Act.
Marginal note:2005, c. 30, s. 126 and par. 129(2)(c)
126. Section 65.3 of the Act is repealed.
Marginal note:2005, c. 30, s. 126
127. Sections 66 to 66.5 of the Act are replaced by the following:
Marginal note:Annual premium rate setting
66. (1) Subject to subsection (7) and section 66.3, the Board shall set the premium rate for each year in order to generate just enough premium revenue during that year to cover the payments to be made under subsection 77(1) during that year and the repayment of any advances that must be made in accordance with subsection 80(2) during that year, and to ensure that the forecast fair market value of the Board’s reserve at the end of that year is equal to the amount determined under subsection (5).
Marginal note:Factors
(2) Subject to subsection (3) and any regulations made under subsections 66.1(2) and 66.2(2), the Board shall set the premium rate based on
(a) the information provided under sections 66.1 and 66.2;
(b) any difference, accumulated after December 31, 2008, between
(i) the amount credited to the Employment Insurance Account under sections 73 to 75, and
(ii) the amount charged to that Account under subsections 77(1) and 80(3);
(c) the investment income earned by the Board;
(d) the Board’s obligation to manage a reserve, the amount of which is referred to in subsection (5);
(e) any regulations made under section 69;
(f) any changes, announced by the Minister on or before September 30 in a year, to payments to be made under paragraph 77(1)(a), (b) or (c) during the following year; and
(g) any other information that the Board considers relevant.
Marginal note:Restriction
(3) In exercising its powers and performing its functions and duties, the Board shall not take into account the balance in the Employment Insurance Account.
Marginal note:Reserve
(4) The Board’s reserve is equal to its financial assets less its financial liabilities.
Marginal note:Indexation
(5) The amount referred to in subsection (1) is equal to the amount paid under section 70.1, indexed annually, beginning in 2009, on a compound basis, in accordance with the regulations.
Marginal note:Regulations — indexation
(6) On the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may make regulations respecting the method for indexing, for the purposes of subsection (5).
Marginal note:Difference year to year
(7) The premium rate may not be increased or decreased by more than fifteen one-hundredths of one per cent (0.15%) from one year to the next.
Marginal note:Governor in Council — maximum change in premium rate
(8) On the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may change the maximum percentage referred to in subsection (7) by which the premium rate may be increased or decreased from one year to the next, if the Governor in Council considers it to be in the public interest.
Marginal note:Time limit
(9) On or before November 14 in a year, the Board shall set the premium rate for the following year.
Marginal note:Information provided
66.1 (1) The Minister shall, on or before September 30 in a year, provide the Board with the following information:
(a) the amount of the payments made under subsection 77(1) during the two previous years;
(b) the amount of the payments made under that subsection during the year;
(c) if the Minister has made an announcement referred to in paragraph 66(2)(f), the forecast change in the amount of the payments to be made during the following year under paragraph 77(1)(a), (b) or (c), as the case may be;
(d) the forecast costs to be paid under paragraphs 77(1)(d) and (f) during the following year, including any forecast change in those costs resulting from any change to the payments referred to in paragraph (c); and
(e) any prescribed information.
Marginal note:Regulations
(2) On the recommendation of the Minister, the Governor in Council may make regulations
(a) prescribing information referred to in paragraph (1)(e); and
(b) specifying which of the information referred to in subsection (1) is binding on the Board.
Marginal note:Information provided
66.2 (1) The Minister of Finance shall, on or before September 30 in a year, provide the Board with the following information:
(a) the most current forecast values of the economic variables that are relevant to the determination under section 66 of a premium rate for the following year;
(b) the amount credited to the Employment Insurance Account under sections 73 to 75 during the year that is two years before the current year;
(c) the estimated amount credited to the Employment Insurance Account under sections 73 to 75 during the previous year;
(d) the amounts forecasted under subsection 77.1(1);
(e) the amount of any interim payment to be made under subsection 77.1(2) or (3) during the year; and
(f) any prescribed information.
Marginal note:Regulations
(2) On the recommendation of the Minister of Finance, the Governor in Council may make regulations
(a) prescribing information referred to in paragraph (1)(f); and
(b) specifying which of the information referred to in subsection (1) is binding on the Board.
Marginal note:Governor in Council
66.3 (1) On the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may, on or before November 30 in a year,
(a) if the Governor in Council considers it to be in the public interest, substitute a premium rate for the following year that is different from the one set by the Board under section 66; or
(b) if the Board has not set a premium rate under that section by November 14 in the year, set one for the following year.
Marginal note:Non-application of subsection 66(7)
(2) Subsection 66(7) does not apply to the setting of the premium rate under subsection (1).
Marginal note:Rounding percentage rates
66.4 If the calculation of a premium rate under section 66 or 66.3 results in a rate that includes a fraction of one per cent, the resulting percentage is to be rounded to the nearest one-hundredth of one per cent or, if the resulting percentage is equidistant from two one-hundredths of one percent, to the higher of them.
Marginal note:Statutory Instruments Act
66.5 The Statutory Instruments Act does not apply in respect of a premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68. However, the premium rates must, as soon as possible, be published by the Board in Part I of the Canada Gazette.
128. The Act is amended by adding the following after section 70:
Marginal note:Payment of $2,000,000,000
70.1 There may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, an amount of two billion dollars to the Board.
129. Subsection 77(1) of the Act is amended by striking out “and” at the end of paragraph (c) and by adding the following after paragraph (d):
(e) the costs to the Board of administering the Canada Employment Insurance Financing Board Act; and
(f) the costs to Her Majesty in right of Canada of administering that Act.
130. The Act is amended by adding the following after section 77:
Marginal note:Forecast — premium revenue and payments
77.1 (1) On or before September 30 in a year, the Minister of Finance shall forecast
(a) the amount to be credited to the Employment Insurance Account under sections 73 to 75 during the year; and
(b) the amount to be charged, during the year, to that Account under subsection 77(1) — based on, among other things, information provided by the Minister — and under subsection 80(3).
Marginal note:Interim payment to Board
(2) If the amount referred to in paragraph (1)(a) is greater than the amount referred to in paragraph (1)(b), an interim payment equal to the amount of the difference shall be made, on or before October 31 in the year, to the Board out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, and charged to the Employment Insurance Account.
Marginal note:Interim payment by Board
(3) If the amount referred to in paragraph (1)(a) is less than the amount referred to in paragraph (1)(b), an interim payment equal to the amount of the difference shall be made, on or before October 31 in the year, by the Board to the Consolidated Revenue Fund and credited to the Employment Insurance Account.
Marginal note:Calculation
(4) On or before March 31 in the second year following the year referred to in subsection (1), the Minister of Finance shall determine the difference between
(a) the actual amount credited to the Employment Insurance Account under sections 73 to 75 during the year, and
(b) the actual amount charged to that Account under subsections 77(1) and 80(3) during the year.
Marginal note:Final payment
(5) A final payment required to reconcile the amount of the interim payment made under subsection (2) or (3) with the amount of the difference determined under subsection (4) shall be determined in accordance with the regulations.
Marginal note:Final payment to Board
(6) If a final payment is owed to the Board, it shall be made, on or before the March 31 referred to in subsection (4), to the Board out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, and charged to the Employment Insurance Account.
Marginal note:Final payment by Board
(7) If a final payment is owed by the Board, it shall be made, on or before the March 31 referred to in subsection (4), by the Board to the Consolidated Revenue Fund and credited to the Employment Insurance Account.
Marginal note:Regulations — final payment
(8) On the recommendation of the Minister of Finance, the Governor in Council may make regulations respecting
(a) the method for determining the final payment referred to in subsection (5);
(b) the interest on it, if any;
(c) the method for determining that interest;
(d) the time from which that interest is payable.
Marginal note:Terms and conditions
(9) Any interim or final payment shall be made in the manner and on the terms and conditions that the Minister of Finance may establish after consulting with the Minister and the Board.
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