Changes to the Employment Insurance Premium Reduction Program
Under the Employment Insurance Act and its regulations, your employment insurance premiums may be reduced when your employees are covered by a qualified short-term disability plan (which reduces employment insurance benefits that would be payable if you did not have such a plan).
In 2017, the Program underwent some changes. If your qualifying short-term disability plan is in place since before January 1, 2017, it may no longer meet the new standard. To mitigate the impact, the government has put in place a four-year transitional period (from January 1, 2017, to January 2, 2021) to give you enough time to make the necessary adjustments to your plan. During this transitional period, you can continue to qualify to participate in the program and receive a premium reduction.
In keeping with our commitment to continuous improvement, we are taking the initiative to adjust our standard group insurance contract to meet the new criteria established by Service Canada.
The adjustments required by Service Canada in order to have our contract meet their new minimum standards include:
- More details in the Reduction and Limitation clauses of the short-term disability insurance section
- Moving certain elements of the Termination clause to the Limitations clause, still in the short-term disability insurance section
These changes were applied to iA Financial Group’s standard group insurance contract effective November 1, 2019. They will be applied to your plan at your next renewal or the next time your plan is modified.
However, depending on the contractual agreement you presently have with iA Financial Group, it is possible that this automatic update cannot be applied at your next renewal. In this case, you may receive a notice from Service Canada prompting you to regularize your qualifying short-term disability plan. If this happens, please contact your advisor or your iA Financial Group Account Executive to learn how to make the necessary updates.