January 1, 2010
Effective January 1, 2010, the employment insurance (EI) maximum insurable earnings will increase from $42,300 per year to $43,200. Accordingly, the new EI benefit amount will be $457 per week, an increase from the current $447 per week.
So what does this mean to you as an employer? If your company has a short-term disability (STD) plan in place, there are 2 possible scenarios:
If your Short-Term Disability plan has a maximum benefit set at the EI maximum, the benefit volume will automatically increase effective January 1st. The corresponding increase in volume will also increase your benefits costs.
If you participate in the EI premium reduction program and your short-term disability plan has a specific dollar maximum less than $457 per week, you will need to amend your plan to at least this maximum in order to remain eligible for the premium reduction.
If you do participate in the premium reduction program and you have a set dollar amount maximum, you may want to speak with your broker about amending your program to a maximum that is automatically adjusted for future EI changes. This will save you time and energy in the years to come.
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