The federal government announced its annual revisions to Employment Insurance (EI) maximums and premium rates.
Regarding Employment Insurance revisions Clear Benefits would like to help plan sponsors and their members understand the changes that will affect Short Term Disability plans.
EI Revisions affect a Short Term Disability plan if:
- When the benefit is a flat amount equal to the Employment Insurance maximum
- If the STD maximum is equal to the Employment Insurance maximum
- STD benefits are calculated using Employment Insurance insurable earnings
If your Short Term Disability plan is affected and your group is head office billed, your January billing statement shows premium adjustments for plan members eligible for an increased benefit.
For groups that are self-reporting, adjust your January premium remittance, as well as all subsequent months to reflect the new Short term Disability volumes of insurance and total premiums.
In the event that your insured Short Term Disability plan or self-insured sick leave plan provides a maximum weekly benefit of less than the new Employment Insurance weekly maximum benefit of $573, your plan may not qualify for the Empolyment Insurance premium reduction program.
Do you have any questions? Please contact your Group Benefits Plan Advisor.