Finance committee  There is not much I can add: you have understood the situation clearly. The rates will fluctuate erratically and increase at the worst possible time, when there is a recession.

Finance committee  As is the case with any economic downturn, the system provided for in Bill C-50 would increase the premium rates. The system provides for a variation limit of about 0.15%, but that could be increased by the ministers at any time.

Finance committee  I can't comment on pilot projects. There will certainly be pressure on premiums and benefits.

Finance committee  The government based its decision on all of the options that it had at its disposal. Of course, as a former public servant, that is something that I can acknowledge. As I have already said, the amount of $2 billion, in its current form, will not have any stabilizing effect whatso

Finance committee  The positive side of this bill is that in the future, costs and premiums will be balanced, with the exception of the interest on the accumulated surplus. Had this system been in place beginning in 1996, we would not have the current surplus. However, the premium rates would have

Finance committee  Precisely.

Finance committee  We are not economists, so no, we have not analyzed what the drag might be. We can determine, though, that an order of magnitude of $10 billion to $15 billion would be needed to carry us through recessions similar to the ones that have occurred in the past, analyzing the variabili

Finance committee  Well, of course, yes, you have to raise premiums from those who are still working, but we say that, mainly, you have to stretch out the period. You cannot take one year at a time. You have to look at it over a longer period.

Finance committee  Indeed, instead of being spread, in our opinion, over...on the $10 billion to $15 billion, on a longer time period, using the reserve--

Finance committee  That is right. I was the chief actuary from 1990 to 2003.

Finance committee  The decisions related to benefits are different from the funding decisions. What we are saying is that the $2 billion, in its current form, will do nothing to stabilize the plan. There could be a ripple effect on benefits; that has occurred in the past.

Finance committee  Thank you Mr. Chairman. My name is Michel Bédard and I would like to thank you for inviting the Canadian Institute of Actuaries to appear before your committee to discuss the creation of the Canada Employment Insurance Financing Board, as provided for in Bill C-50. Our professi