If you’re a business owner who follows business news, you may have heard about the changes to EI benefits. In this article, we’re breaking down those changes, when they came into effect and whether this will have an impact on business benefits packages.
Changes to EI Benefits.
The federal government confirmed their commitment to improving EI Sickness Benefits. On Dec 18th, 2022, EI Sickness Benefits increased from 15 to 26 weeks of coverage.
This means that employees now can receive 55% of their earnings to a maximum of $638 per week, with an annual insurable earnings of $61,500.
Clients with Short-term Disability plans that integrate with EI sickness benefits may wish to align their max benefit period to 26/27 weeks. If this is something of interest for an employee, please reach out to one of our benefits advisors and we’d be happy to discuss options.
What happens to current claims?
If there’s an employee who has claims that began before December 18th, 2022, their coverage doesn’t switch to the extended coverage. They will remain with only having 15 weeks of coverage.
Additionally, existing plans that were approved for the Premium Reduction Program (PRP) will continue as is as well.
No changes are required to continue to qualify for PRP.
What do plan sponsors need to know?
If you’re a plan sponsor, it’s important to note that these plan design changes are not automatic. If you are wishing to explore an amendment to your current coverage, you must reach out to our advisors. Together, we will work to access your coverage and what needs to be changed.
Additionally, take the time to consider that 26 weeks (6 months) is a long absence from:
- Direct case manager support
- Return to work communication
- Access to early intervention tool and rehab support
- Reduced claim durations due to early return to work
If you’d like to speak more about these changes and the impacts of switching would have, we would be happy to assist you. Please reach out to us directly and let’s chat through all of these changes.
How does this impact benefit packages/plans?
Probably the most important question you may be asking is how this change is going to impact coverage.
If your plan has both weekly indemnity (WI) /short term disability and long term disability coverage:
- This means that plan members shouldn’t be applying for EI and therefore none of these details will impact your team or the way claims are currently administered.
- However, you can opt to match the WI/STD period to the enhanced EI Sickness Benefit period, you will amend both the WI/STD benefit period and the LTD elimination period. To do this, please give us a call to set up these changes.
For those employees who do not qualify for benefits (part time employees, over the age for WI and long term disability), they would apply for EI and the coordination of coverage wouldn’t apply.
This means that there would be no impact to these employees.
Not sure if your coverage is impacted? Ask us!
If you’re still not quite sure what this means for your company’s coverage plan, we are here to help. Just give us a call. We are happy to discuss the 2023 changes to EI benefits and how this might impact your plan.
