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Bill C-2

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RECOMMENDATION

Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled ``An Act to amend the Employment Insurance Act and the Employment Insurance (Fishing) Regulations''.

SUMMARY

This enactment extends the period for the application of a provision of the Employment Insurance Act, changes the method of calculating the maximum yearly insurable earnings, exempts persons who receive certain special benefits from being considered as new entrants or re-entrants to the labour force, removes the reduction of the rate of weekly benefits, gives the Governor in Council the power to set, for the years 2002 and 2003, the premium rate applicable to insurable earnings, reduces the number of cases in which benefits have to be repaid and amends the Employment Insurance (Fishing) Regulations.

EXPLANATORY NOTES

Employment Insurance Act

Clause 1: Subsection 2(5) reads as follows:

(5) For the purposes of sections 15 and 145, the Commission may, with the approval of the Governor in Council, make regulations for establishing how many weeks of regular benefits a claimant was paid, in order to take into account benefit reductions or deductions in the calculation or payment of those benefits.

Clause 2: Subsection 3(2) reads as follows:

(2) The Commission shall report to the Minister on its assessment annually from 1997 to 2001 no later than December 31 each year and shall make any additional reports at any other times, as the Minister may request.

Clause 3: Section 4 reads as follows:

4. For the purposes of subsection 14(1.1), section 17, subsection 82(2) and sections 95 and 145, the maximum yearly insurable earnings is

    (a) $39,000 for the years 1997 to 2000; and

    (b) for each subsequent year, an amount to be set by the Commission, with the approval of the Governor in Council on the recommendation of the Minister and the Minister of Finance.

Clause 4: New.

Clause 5: Section 15 reads as follows:

15. (1) The percentage of 55 % mentioned in subsection 14(1) is reduced as provided in the following table if the claimant is not claiming special benefits and in the 260 weeks before the benefit period begins, the claimant was paid more than 20 weeks of regular benefits.

TABLE

Number of Weeks of Regular Benefits Reduced Paid Per centage

21-40 54 % 41-60 53 % 61-80 52 % 81-100 51 % more than 100 50 %

(1.1) No reduction shall be made under subsection (1) if the claimant is entitled to a family supplement under section 16.

(2) Regular benefits paid for weeks beginning before June 30, 1996 shall not be taken into account when applying subsection (1).

Clause 6: Section 17 reads as follows:

17. The maximum rate of weekly benefits is

    (a) $413 if the claimant's benefit period begins during the years 1997 to 2000; and

    (b) if the claimant's benefit period begins in a subsequent year, 55 % of the maximum yearly insurable earnings divided by 52.

Clause 7: Subsection 28(6) reads as follows:

(6) For the purposes of this Part, other than section 15, benefits are deemed to be paid for the weeks of disqualification.

Clause 8: Subsection 38(3) reads as follows:

(3) For greater certainty, the repayment of benefits overpaid as a result of an act or omission mentioned in subsection (1) does not affect the determination, for the purposes of section 15 or subsection 145(2) or (3), of the number of weeks of regular benefits paid to a claimant.

Clause 9: New.

Clause 10: Section 67 reads as follows:

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 by the Commission.

Clause 11: (1) The relevant portion of subsection 145(1) reads as follows:

145. (1) If a claimant's income for a taxation year exceeds 1.25 times the maximum yearly insurable earnings, the claimant shall repay to the Receiver General 30 % of the lesser of

    (a) the total benefits paid to the claimant in the taxation year, and

(2) Subsections 145(2) to (8) read as follows:

(2) The claimant shall repay to the Receiver General an amount determined under subsections (3) to (5), instead of subsection (1), if in the five years before a taxation year, the claimant was paid more than 20 weeks of regular benefits and their income for the taxation year exceeds the maximum yearly insurable earnings.

(3) The claimant shall repay a percentage of the total benefits, other than special benefits, paid to the claimant in the taxation year, as determined by the following table.

TABLE

Number of Weeks of Regular Benefits Percentage Paid Re payable

21 to 40 50 % 41 to 60 60 % 61 to 80 70 % 81 to 100 80 % 101 to 120 90 % more than 120 10 0 %

(4) The maximum amount repayable under subsection (3) is 30 % of the amount by which the claimant's income for the taxation year, less any amount repayable under subsection (5), exceeds the maximum yearly insurable earnings.

(5) If the claimant was paid special benefits in the taxation year, the claimant shall also repay 30 % of the lesser of

    (a) the special benefits paid to the claimant in the taxation year, and

    (b) the amount by which the claimant's income for the taxation year exceeds 1.25 times the maximum yearly insurable earnings.

(6) Regular benefits paid for weeks beginning before June 30, 1996 shall not be taken into account when applying subsections (2) to (4).

(7) A repayment must be made

    (a) in the case of a claimant who dies after October in the year and before May in the next year, within six months after the day of death; and

    (b) in any other case, on or before April 30 in the next year.

(8) For greater certainty, repayments under this section do not affect the determination under subsections (2) and (3) or section 15 of the number of weeks of regular benefits paid to a claimant.

Employment Insurance (Fishing) Regulations

Clause 13: (1) and (2) New.