Employment Insurance (EI) changes require contract update
On Jan 1. 2017, the waiting period for Employment Insurance (EI) benefits was reduced from 14 days to seven, a change introduced with the 2016 federal budget. This means the benefit period is now a total of 16 weeks: a one-week unpaid waiting period and 15 weeks of paid benefits.
To continue to qualify for the EI Premium Reduction Program (PRP), your plan must have a waiting period of seven days or less. Service Canada has allowed existing plans until Jan. 1, 2021 to become compliant.
In addition, Service Canada is reviewing other contract provisions and has contacted PRP clients to make revisions to their plan wording to remain eligible for the premium reduction.
On behalf of member companies, Canadian Life and Health Insurance Association Inc., has been in contact with Service Canada to develop standard wording for the contract revisions with the goal of ensuring all plan sponsors are compliant. Service Canada has yet to confirm a timeline for completing this review.
For more information, contact your Group Benefits Advisor.
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