C-344
First Session, Thirty-ninth Parliament,
55 Elizabeth II, 2006
HOUSE OF COMMONS OF CANADA
BILL C-344
An Act to amend the Employment Insurance Act (Employment Insurance Account and premium rate setting) and another Act in consequence
first reading, June 22, 2006
NOTE
2nd Session, 39th Parliament
This bill was introduced during the First Session of the 39th Parliament. Pursuant to the Standing Orders of the House of Commons, it is deemed to have been considered and approved at all stages completed at the time of prorogation of the First Session. The number of the bill remains unchanged.
Mr. Blais
391344
SUMMARY
This enactment amends the method for setting the premium rate in the Employment Insurance Act. It also amends a number of provisions in that Act with respect to the Employment Insurance Account.
This enactment provides that every year the Canada Employment Insurance Commission will set the premium rate and cause a report to be sent to the Minister of Human Resources and Skills Development who will cause a copy of the report to be laid before each House of Parliament.
This enactment provides also that the Employment Insurance Account will no longer form part of the accounts of Canada. The amounts paid into the Employment Insurance Account will become part of the assets of the Canada Employment Insurance Commission, and the Commission will manage them in the best interests of the contributors and beneficiaries under the employment insurance system.
At the request of the Minister of Finance, the Canada Employment Insurance Commission may extend a loan to Her Majesty in right of Canada and establish the interest rate and other terms and conditions for its repayment. Conversely, that Minister must extend a loan to the Commission if the Commission is unable to pay the amounts that it is liable to pay.
Under the enactment, the Canada Employment Insurance Commission is composed of four commissioners, including a Chairperson, a Vice-Chairperson, a person representing employees and a person representing employers. The persons representing employees and employers are appointed by the Governor in Council, the Chairperson is appointed by the House of Commons and the Vice-Chairperson is selected from among the Deputy Ministers or the Associate Deputy Ministers of the Department of Human Resources and Skills Development.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
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1st Session, 39th Parliament,
55 Elizabeth II, 2006
house of commons of canada
BILL C-344
An Act to amend the Employment Insurance Act (Employment Insurance Account and premium rate setting) and another Act in consequence
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1996, c. 23
EMPLOYMENT INSURANCE ACT
1. Sections 65.3 to 67 of the Employment Insurance Act are replaced by the following:
Premium rate setting
66. (1) Not later than November 30 in each year, the Commission shall set the premium rate that the Commission considers will, to the extent possible, over a business cycle,
(a) serve the best interests of the contributors and beneficiaries under the employment insurance system;
(b) ensure that there is enough revenue to pay the expenses authorized to be charged to the Employment Insurance Account;
(c) maintain stable rate levels; and
(d) ensure that the difference between the assets of the Employment Insurance Account and its liabilities does not exceed fifteen billion dollars.
Report to Minister
(2) On the first day of October in each year, the Commission shall cause a report to be sent to the Minister containing
(a) the reasons for setting the premium rate for the year;
(b) any change to the amount of benefits that the Commission considers will, to the extent possible, over a business cycle,
(i) ensure that there is enough revenue to pay the expenses authorized to be charged to the Employment Insurance Account, and
(ii) maintain stable rate levels;
(c) a detailed description of the assets of the Commission on the first day of September in each year;
(d) a detailed description of the amounts that have been paid into or paid out of the Employment Insurance Account since the previous report;
(e) an estimate of the amounts to be paid into the Employment Insurance Account under this Act for the following year, calculated on the basis of the premium rate set by the Commission in the report;
(f) an estimate of the amounts to be paid out of the Employment Insurance Account under this Act for the following year, calculated on the basis of the amount of benefits to be paid set by the Commission in the report;
(g) any recommendations that the Commission considers necessary for the improvement of the employment insurance system, including amendments to Acts, regulations and policies with respect to employment insurance; and
(h) any other information that the Commission considers necessary.
Tabling in Parliament
(3) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first five days on which that House is sitting after the Minister receives it.
Employee's premium
67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66.
2. Sections 71 to 76 of the Act are replaced by the following:
Employment Insurance
Account established
71. There shall be established in the name of the Commission an account to be known as the Employment Insurance Account.
Payment 
into the Employment
Insurance Account
72. (1) There shall be paid into the Employment Insurance Account
(a) all amounts credited to the Employment Insurance Account — as that Account exist-ed immediately prior to the day on which this section comes into force — and not charged to that Account for the purposes of this Act on the coming into force of this section;
(b) all amounts received under Parts I and III to IX, as or on account of premiums, fines, penalties, interest, repayment of overpaid benefits and benefit repayment;
(c) all amounts collected by the Commission for services rendered to other government departments or agencies or to the public;
(d) all amounts received on account of principal or interest on loans made by the Commission under Part II or as repayment of overpayments made by the Commission under that Part;
(e) all premiums required to be paid by Her Majesty in right of Canada as employer’s premiums for persons employed in insurable employment by Her Majesty in right of Canada;
(f) all amounts paid into the Consolidated Revenue Fund that are
(i) received as or on account of penalties imposed under section 38, 39 or 65.1 and repayments of overpaid benefits, except interest and penalties on benefit repayment,
(ii) received on account of principal or interest on loans made by the Commission under Part II,
(iii) received as repayments of overpayments by the Commission under section 61 for employment benefits and support measures authorized by Part II,
(iv) received as repayments of overpayments by the Commission under agreements entered into under section 63, or
(v) received as interest under section 80.1;
(g) any amount provided out of the Consolidated Revenue Fund to the Commission by the Minister of Finance under section 74;
(h) any amount provided out of the Consolidated Revenue Fund appropriated by Parliament intended for any purpose related to employment insurance and administered by the Commission; and
(i) any other amounts paid into the Consolidated Revenue Fund or to the Commission under this Act for any purpose related to employment insurance and administered by the Commission.
Annual payments
(2) The Minister shall pay the amounts referred to in paragraph (1)(a) into the Employment Insurance Account over a period of time that the Minister considers appropriate, having regard to the fiscal position and expected outlook of the Government of Canada.
Minimum payment
(3) The amounts paid in the course of a year shall not be less than one half of the amount remaining at the end of that year in the Contingency Reserve provided for in the budget for that year.
Maximum payment
(4) Despite subsection (3), the amounts paid in the course of a year shall not exceed the amounts referred to in paragraph (1)(a).
Assets of the Commission
(5) All amounts paid into the Employment Insurance Account
(a) shall become part of the assets of the Commission; and
(b) shall, as they are paid into the Account, be deposited with a financial institution within the meaning of the Financial Consumer Agency of Canada Act, a body corporate to which the Trust and Loan Companies Act applies, or an association to which the Cooperative Credit Associations Act applies.
Duties of the Commission
(6) The Commission shall
(a) manage the amounts paid into the Employment Insurance Account in the best interests of the contributors and beneficiaries under the employment insurance system; and
(b) subject to section 73, invest its assets with a financial institution, body corporate or association referred to in paragraph (2)(b) with a view to achieving a maximum rate of return without undue risk of loss, having regard to the factors that may affect the funding of the employment insurance system provided for in this Act and the ability of the Commission to meet its financial obligations.
Loans to Her Majesty
in right of Canada
73. At the request of the Minister of Finance, the Commission may extend a loan to Her Majesty in right of Canada to be repaid on such terms and conditions, including interest, as the Commission may establish.
Loan to the Commission
74. (1) Where the assets of the Employment Insurance Account are not sufficient for the payment of the amounts that the Commission is liable to pay under this Act, the Minister of Finance shall, at the request of the Commission, extend a loan from the Consolidated Revenue Fund to the Commission in an amount sufficient to meet the payments.
Repayment
(2) The Minister of Finance shall set an interest rate and terms and conditions for the repayment of the loan that are more advantageous to the Commission then those that the Commission can obtain from a financial institution.
3. Sections 77 and 78 of the Act are replaced by the following:
Amounts paid out of the
Employment Insurance Account
77. (1) There shall be paid out of the Employment Insurance Account
(a) all amounts paid as or on account of benefits under this Act;
(b) all amounts paid under section 61 for employment benefits and support measures authorized by Part II;
(c) all amounts paid under paragraph 63(a);
(d) the costs of administering this Act, including administration costs paid under section 62 or paragraph 63(b);
(e) any amount paid by the Commission to Her Majesty in right of Canada under section 73; and
(f) any other amount to be paid by the Commission under this Act, including all amounts paid by the Commission under an agreement with the government of a prov­ince.
Payment by 
special
warrants
(2) Despite any other Act of Parliament, amounts mentioned in paragraph (1)(a) shall be paid by special warrants drawn on and issued by the Commission by electronic means or bearing the printed signature of the Chairperson and Vice-Chairperson of the Commission, and amounts mentioned in paragraphs (1)(b) and (c) may be paid by the special warrants.
No charge for negotiation
(3) The special warrants are negotiable without charge at any financial institution in Canada.
4. Section 80 of the Act is repealed.
2005, c. 34
DEPARTMENT OF HUMAN RESOURCES AND SKILLS DEVELOPMENT ACT
5. Subsections 20(1) and (2) of the Department of Human Resources and Skills Development Act are replaced by the following:
Establishment of Commission
20. (1) There is hereby established a Commission to be known as the Canada Employment Insurance Commission.
Commissioners
(2) The Commission shall be composed of four commissioners, as follows:
(a) a Chairperson;
(b) a Vice-Chairperson;
(c) a person representing employees; and
(d) a person representing employers.
6. The Act is amended by adding the following after section 21:
Appointment of commissioners
21.1 (1) The Governor in Council shall appoint the commissioners who will represent employees and employers from a list of nominees provided by associations represen-ting employers and employees in Canada.
Appointment of Vice-Chairperson
(2) The Governor in Council appoints the Vice-Chairperson from among the Deputy Ministers or the Associate Deputy Ministers of the Department of Human Resources and Skills Development.
Appointment of Chairperson
21.2 (1) The Chairperson shall be appointed by the House of Commons on the recom-mendation of the Minister following consultation of the commissioners representing employees and employers.
Deciding vote
(2) The Chairperson shall not vote, but shall cast a deciding vote in case of an equal division.
Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada