The Canada Pension Plan

The Canada Pension Plan is set to enhance incrementally in 2019. Higher benefits are available for claim in exchange for higher contributions. Contributions done in 2018, however, will not affect the enhancement in the coming year as the CPP enhancement will only take effect on work and contributions made in 2019.

What is the CPP?

The Canada Pension Plan is a way for Canadian employees to receive a partial replacement of earnings for retirement, as well as for cases like death or disability. In order to benefit the CPP, however, one has to provide monetary contributions to the program. 18 years old and above Canadian employees are mandated by the CPP to contribute a certain amount of their income to a pension plan in their own respective area. For Canadian employees, the Human Resources and Social Development Canada administers the CPP. Employees from Quebec are exempted from CPP mandate for monetary contributions as Quebec has its own pension plan called the Quebec Pension Plan.

The Employment Insurance Act

What is the Employment Insurance Act for?

The Employment Insurance Act is an act administered by the Canada Employment Insurance Commission. The act aims to provide employment insurance benefits, employment programs, and services to workers eligible for its benefits. The Employment Insurance Operating Account handles the financial transactions made through the Employment Insurance Act. The financial transactions relating to this objective are reported through the Employment Insurance Operating Account. The E.I Operating Account was established in the accounts of Canada by the Act.

The Canada Employment Insurance Commission

The Canada Employment Insurance Commission is the departmental corporation that conducts the Employment Insurance Act. It consists of three parties that oversee the E.I program and has been doing so for 75 years.
The Commission has four members, representing the government, the workers, employers and lastly an acting vice-chairman. The Deputy Minister of the Department of ESDC as well as the Senior Associate Deputy Minister of the Department of ESDC acts as Chairperson and represents the government, the Chief Operating Officer for Service Canada as the Vice-Chairperson, and the Commissioner for Workers and the Commissioner for Employers for workers and employers respectively.
The Commission is responsible for determining the Insurance premium rate, the yearly maximum insurable earnings and the premium reduction in respect to the wage-loss plans by employers.

Who handles the money?

All amounts received are credited to the E.I Operating account and are sent directly for keeping to the Consolidated Revenue Fund. Consolidated Revenue Fund also provides the budget and benefits of the E.I administration and charged to the Employment Insurance Operating Account.

The daily administration and supervision of the E.I Operating Account and the provision of the Employment Insurance program fall under the Department of Employment and Social Development.

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