Changes to the Employment Insurance (EI) Sickness Benefits and Impact on your Plan
The Federal Government has extended Employment Insurance (EI) sickness benefits from 15 to 26 weeks.
EMPLOYMENT INSURANCE SICKNESS BENEFITS 2023
EI sickness benefits are paid at 55% of the applicant’s average weekly insurable earnings, up to a maximum entitlement of $650 for 2023. Income is taxable.
Benefits start after 7 days and pay for 26 weeks.
To qualify for EI benefits, the applicant must have worked 600 insured hours in the past 52 weeks.
PLAN DESIGN CONSIDERATIONS
If you have a Short-Term Disability (STD) plan that integrates with the EI sickness benefit they’ll need to align to the new 26-week benefit period.
If your plan doesn’t have STD and your plan members claim EI benefits prior to Long-Term Disability (LTD), then you’ll need to align your LTD elimination period with the new 26 weeks.
If you have an insured STD plan that qualifies for the Premium Reduction Program (PRP), then your plan will need to match the EI plan in order to maintain future qualification.
In addition to the changes above, you may reconsider the value of an insured STD plan.
The EI benefit weekly max insures an annual salary of up to $61,455.
Several other features have been improved over the years, making the EI benefit a more acceptable alternative.
WAYNE FARROW
Over his 40 year career, Wayne has worked with hundreds of Canadian corporations to design and manage Retirement Savings Programs involving thousands of plan members.
His hands-on approach and involvement at the Plan Member level gives him a unique ability to see things through the eyes of all the stakeholders and most importantly, the Plan Member.
He has literally been there, and done that, on the shop floor, not the 52nd floor.
This experience has allowed him to simplify the plan design and management of retirement programs in such a way that the most important elements are clearly understood by both the Plan Sponsor, and the Plan Member.
As he always says, “if you can’t explain it to an eight year old, then you don’t understand it.”
You can contact Wayne at: wayne@farrowpension.ca