Why was there previously an age limit?
Evidence of meeting #88 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was rate.
A video is available from Parliament.
Evidence of meeting #88 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was rate.
A video is available from Parliament.
3:50 p.m.
NDP
3:50 p.m.
Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
There is a minimum age in several pieces of legislation. There is a project to ensure that all legislation take the same approach and have the same policy. The current policy is to eliminate all minimums.
3:50 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
My question was why there was initially an age limit.
3:50 p.m.
Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
I'm sorry. I have no idea.
As I said, there are a number of acts that have minimum ages in them, and the minimum ages seem to vary between 65, 70, and 75 years. I can't answer as to why they were introduced originally.
3:55 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Are there currently any administrators at CMHC who are close to 70 years of age? Do you have an idea of the current age of the administrators?
3:55 p.m.
Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
I have no idea. I'm sorry.
3:55 p.m.
Conservative
The Chair Conservative James Rajotte
Are there any other questions?
No?
Thank you, Ms. Pearse, for being with us here today to explain this section and to respond to us.
3:55 p.m.
Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance
Thank you.
3:55 p.m.
Conservative
The Chair Conservative James Rajotte
Colleagues, we will move on to part 4, division 22, dealing with the Canada Employment Insurance Financing Board.
We'll welcome Madame Laroche and Ms. Miller back to the table.
3:55 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
Hello again.
Division 22 suspends the Canada Employment Insurance Financing Board until the EI operating account has returned to a cumulative balance and the CEIFB can fulfill its full legislative mandate.
In the interim, the premium rate will be set by the Governor in Council according to the current rate-setting mechanism set out in the EI act. Specifically, it will take into account the recent changes to the rate-setting mechanisms that were introduced as part of BIA 1, namely that the premium rate cannot increase or decrease by more than 5¢ on an annual basis and that the rate be set every year by September 14.
To ensure the continued transparency and accountability of the rate-setting mechanism, reports done by the EI commission and its actuary are to be tabled in Parliament by the Minister of Human Resources and Skills Development.
Once the EI operating account is projected to be in cumulative balance, the CEIFB is to set the rates based on the new rate-setting mechanism that was introduced as part of BIA 1—that is, the new seven-year break-even rate approach.
I'd be happy to answer any questions you may have.
3:55 p.m.
Conservative
The Chair Conservative James Rajotte
Thank you for your presentation.
Are there any questions?
Go ahead, Monsieur Caron.
3:55 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
It states that the mechanism that was implemented under Bill C-38 will come into effect only once the cumulative balance of the account is zero.
How much is the deficit currently? Can you remind me?
3:55 p.m.
Chief, Labour Markets, Employment and Learning, Department of Finance
Yes, it is on page 241 of the budget. I'll speak in English; it's much easier for me.
The annual balance for 2012-13 is negative $3 billion, I think.
3:55 p.m.
NDP
3:55 p.m.
Chief, Labour Markets, Employment and Learning, Department of Finance
That's the annual balance. The cumulative is negative $8.8 billion.
3:55 p.m.
Chief, Labour Markets, Employment and Learning, Department of Finance
It is $8.8 billion.
We're talking about $8.8 billion.
3:55 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
I thought it was close to $9 billion.
When do you think we will be able to reach this zero balance, based on the projections, taking into account the increase in contributions?
3:55 p.m.
Chief, Labour Markets, Employment and Learning, Department of Finance
Cumulative balance is expected to return in 2016-17.
3:55 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Bill C-38 is putting in place a new method of operating that will come into effect around 2016-2017. However, Bill C-45 aims to eliminate the board immediately.
What will happen in the meantime? Bill C-45 proposes eliminating the Canada Employment Insurance Financing Board. The board won't be abolished in 2016-2017?
3:55 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
Bill C-45 suspends the board. Once the account is in the black, the board will determine the contribution rate based on the new approach under Bill C-38.
Starting today and until then, the rates will increase by 5¢ each year to balance out. Since the board cannot fulfill its duties as set out by the legislation, with respect to investment and funds allocated to the account, the government decided to suspend its activities and resume them once the balance is achieved.
4 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
That's what I have the most difficulty understanding from a chronological perspective. The board was created in 2008?
4 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
Yes.
4 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
From 2008 to 2011-2012, has it accomplished anything with respect to its mandate?