Supplementary Statement

Public Accounts of Canada 2015 Volume I - Top of the page Navigation

Employment Insurance Operating Account

Management's Responsibility for Financial Statements — Employment Insurance Operating Account

The financial statements of the Employment Insurance Operating Account are prepared in accordance with Canadian public sector accounting standards by the management of Employment and Social Development Canada (ESDC). Management is responsible for the integrity and objectivity of the information in the financial statements, including the amounts which must, of necessity, be based on best estimates and judgement. The significant accounting policies are identified in Note 2 to the financial statements.

To fulfill its accounting and reporting responsibilities, management has developed and maintains books of account, financial and management controls, information systems and management practices. These systems are designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Employment Insurance Act and regulations, as well as the Financial Administration Act and regulations.

The Auditor General of Canada, the external auditor of the Employment Insurance Operating Account, conducts an independent audit of the financial statements in accordance with Canadian generally accepted auditing standards and provides a report to the Minister of Employment and Social Development.

The financial statements of the Employment Insurance Operating Account are an integral part of the Public Accounts of Canada, which are tabled in the House of Commons and are referred to the Standing Committee on Public Accounts for examination purposes.

Ian Shugart
Chairperson of the Canada
Employment Insurance Commission

Alain P. Séguin, MBA, CPA, CGA
Chief Financial Officer
Employment and Social Development Canada

Gatineau, Canada
September 1st, 2015

Independent Auditor's Report — Employment Insurance Operating Account

To the Minister of Employment and Social Development

I have audited the accompanying financial statements of the Employment Insurance Operating Account, which comprise the statement of financial position as at 31 March 2015, and the statement of operations and accumulated surplus (deficit), statement of change in net financial assets (net debt) and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the financial statements present fairly, in all material respects, the financial position of the Employment Insurance Operating Account as at 31 March 2015, and the results of its operations, changes in its net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Michael Ferguson, CPA, CA
FCA (New Brunswick)
Auditor General of Canada

1 September 2015
Ottawa, Canada

Table Summary

The table presents, in thousands of dollars, a two-year comparative of the statement of financial position as at March 31. It consists of three columns: a detailed listing of components; current year; previous year. The first series of rows presents the financial assets. The second series of rows presents the liabilities. The final row presents the accumulated surplus (deficit).

(in thousands of dollars)

Statement of Financial Position as at March 31

  2015 2014
Financial assets    
Premiums receivable 1,823,656 1,576,278
Due from claimants (Note 3) 712,477 726,816
Amounts receivable from Canada — Administration costs   16,302
Subtotal 2,536,133 2,319,396
Liabilities    
Due to Receiver General for Canada 1,401,786 4,649,687
Benefits payable 536,613 365,480
Amounts payable (Note 4) 76,028 37,960
Subtotal 2,014,427 5,053,127
Net financial assets (net debt) and accumulated surplus (deficit) 521,706 (negative 2,733,731)

Approved by:

Ian Shugart
Chairperson of the Canada
Employment Insurance Commission

Alain P. Séguin, MBA, CPA, CGA
Chief Financial Officer
Employment and Social Development Canada

Table Summary

The table presents, in thousands of dollars, a two‑year comparative of the statement of operations and accumulated surplus (deficit) for the year ended March 31. It consists of four columns: a detailed listing of components; current year's budget; current year's actual; previous year's actual. The first series of rows presents the revenues. The second series of rows presents the expenses. The following rows present the net surplus for the year and the accumulated deficit at the beginning of the year. A final row presents the accumulated surplus (deficit) at the end of the year.

(in thousands of dollars)

Statement of Operations and Accumulated Surplus (Deficit) for the year ended March 31

  2015
Budget (Note 6)
2015
Actual
2014
Actual
Revenues      
Premiums (Note 7) 23,061,000 22,962,274 22,160,249
Penalties (Note 3) 60,000 39,666 40,987
Interest on overdue accounts receivable (Note 3) 21,000 12,786 25,689
Subtotal 23,142,000 23,014,726 22,226,925
Expenses      
Benefits and support measures (Schedule I)      
Income benefits (Note 8) 16,105,000 16,235,790 15,520,231
Transfers to provinces and territories related to Labour Market Development Agreements 1,950,000 1,930,727 1,872,026
Support measures 127,000 116,096 115,267
Benefits repayments from higher income claimants (negative 215,000) (negative 230,430) (negative 206,923)
Administration costs (Note 9) 1,591,000 1,657,055 1,680,198
Bad debts 65,000 50,051 16,396
Subtotal 19,623,000 19,759,289 18,997,195
Net surplus for the year 3,519,000 3,255,437 3,229,730
Accumulated deficit at the beginning of the year (negative 2,733,731) (negative 2,733,731) (negative 5,963,461)
Accumulated surplus (deficit) at the end of the year 785,269 521,706 (negative 2,733,731)
Table Summary

The table presents, in thousands of dollars, a two‑year comparative of the statement of change in net financial assets (net debt) for the year ended March 31. It consists of four columns: a detailed listing of components; current year's budget; current year's actual; previous year's actual. The first row presents the net surplus for the year. The second row presents the net debt at beginning of the year. A final row presents the net financial assets (net debt) at the end of the year.

(in thousands of dollars)

Statement of Change in Net Financial Assets (Net Debt) for the year ended March 31

  2015
Budget (Note 6)
2015
Actual
2014
Actual
Net surplus for the year 3,519,000 3,255,437 3,229,730
Net debt at beginning of year (negative 2,733,731) (negative 2,733,731) (negative 5,963,461)
Net financial assets (net debt) at end of year 785,269 521,706 (negative 2,733,731)
Table Summary

The table presents, in thousands of dollars, a two‑year comparative of the statement of cash flow for the year ended March 31. It consists of three columns: a detailed listing of components; current year; previous year. The first series of rows presents the operating activities by cash receipts. The second series of rows presents the operating activities by cash payments. The following row presents the net change in the amount due to Receiver General for Canada — result from cash receipts minus cash payments. A final series of rows presents the amount due to Receiver General for Canada at the beginning and at the end of the year.

(in thousands of dollars)

Statement of Cash Flow for the year ended March 31

  2015 2014
Operating activities    
Cash receipts:    
Premiums 22,714,896 22,049,031
Recoveries of benefit overpayments and penalties 302,190 319,000
Benefits repayments received from higher income claimants 208,336 210,142
Subtotal 23,225,422 22,578,173
Cash payments:    
Income benefit (negative 16,327,014) (negative 16,030,501)
Transfers to provinces and territories related to Labour Market Development Agreements (negative 1,930,727) (negative 1,872,026)
Support measures (negative 111,187) (negative 116,073)
Administration costs (negative 1,608,593) (negative 1,733,069)
Subtotal (negative 19,977,521) (negative 19,751,669)
Net change in due to Receiver General for Canada 3,247,901 2,826,504
Due to Receiver General for Canada    
Beginning of year (negative 4,649,687) (negative 7,476,191)
End of year (negative 1,401,786) (negative 4,649,687)

Notes to the Financial Statements for the year ended March 31, 2015

1. Authority, objective and responsibilities

The Canada Employment Insurance Commission (the Commission), a departmental corporation named in Schedule II to the Financial Administration Act, administers the Employment Insurance Act (the Act). The Commission is co‑managed by the Government, workers and employers. The objective of the Act is to provide short‑term financial relief and other assistance to eligible workers. The financial transactions relating to this objective are reported through the Employment Insurance Operating Account.

The Employment Insurance Operating Account (the Account) was established in the accounts of Canada by the Act. All amounts received under the Act are deposited in the Consolidated Revenue Fund and credited to the Account. The benefits and the costs of administration of the Act are paid out of the Consolidated Revenue Fund and charged to the Account.

The Department of Employment and Social Development Canada (ESDC) is responsible for the delivery of the Employment Insurance program and the day‑to‑day administration of the Account, on behalf of the Commission.

The Minister of National Revenue is responsible for collecting premiums from employers and employees, and for administering and enforcing the provisions of the Act relating to benefit repayments receivable from higher income claimants.

The Act authorizes the Government of Canada to enter into Labour Market Development Agreements with each province and territory on the design and delivery of the active employment benefits and support measures contained in the Act. Agreements with full responsibility to the provinces and territories for delivering the active employment benefits and support measures have been implemented with all provinces and territories.

The Act also authorizes the Government of Canada to enter into a premium reduction agreement with a province, to allow for a regulatory scheme to make the necessary adjustments and modifications to the Act. This is required to harmonize it with a provincial law that has the effect of reducing or eliminating the special benefits payable under the Act.

2. Significant accounting policies

The Account is a component of the Government of Canada reporting entity. In this context, its operations are consolidated with those of the Government and are presented in the financial statements of the Government of Canada.

a. Basis of accounting

These financial statements are prepared in accordance with Canadian public sector accounting standards (PSAS).

b. Premiums

Premiums are recognized as revenue in the period in which they are earned, when workers, through their employment, generate these premiums and the related employer's contribution. Premiums earned in the period are measured from amounts assessed by the Canada Revenue Agency (CRA) and from estimates of amounts not assessed. Premium revenue also includes adjustments between actual and estimated premiums of previous years.

c. Benefits and support measures

Benefits and support measures include income benefits (or benefits under Part I of the Act) and employment benefits and support measures (benefits under Part II of the Act). Those benefits expenses are recorded when the recipients become entitled to the benefits. An estimate of the benefits earned by the recipients related to the current fiscal year but not yet paid is recorded as benefits payable. This estimate is based on actual payments made subsequent to year‑end.

Income benefits provide temporary income support to claimants, including self‑employed fishers, while they look for work. This includes work‑sharing agreements for temporary work shortages. It also includes special benefits such as maternity, parental, sickness and compassionate care benefits. Income benefits expenses represent the amounts paid and payable to claimants for the period relating to the fiscal year, based on the weeks the claimants were entitled to the payments. Overpayments established during the year are deducted from these expenses.

Support measures provide financial assistance, through government transfers, to eligible persons to help them re‑integrate into the labour market and to third parties to help them provide employment assistance services to unemployed workers and employed persons if they are facing a loss of their employment. These expenses include the direct costs of financial and employment assistance programs and related measures provided to eligible persons and third parties. Government transfers are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement and the transfer is authorized.

Transfer payments to the provinces and territories under the Labour Market Development Agreements are made pursuant to Section 63 of the Act. Similar to the employment benefits and support measures, these transfer payments are recorded as expenditures in the year in which the provinces/territories met the eligibility criteria and the transfers are authorized. Overpayments to provinces and territories are recovered and recorded in reduction of expenses.

Claimants with higher income levels than those stated in the Act have to repay benefits received. Benefit repayments received and the estimated benefit repayments receivable are assessed by the CRA based on tax returns assessed and an estimate of tax returns not yet assessed.

d. Administration costs

Administration costs are accounted for and charged to the Account in accordance with various memoranda of understanding.

e. Due to Receiver General for Canada

The Account operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by and credited to the Account is deposited to the CRF, and all cash disbursements made by and charged to the Account are paid from the CRF. The due to Receiver General for Canada is the difference between all cash receipts and all cash disbursements, including transactions with departments of the Government.

f. Measurement uncertainty

The preparation of financial statements in accordance with Canadian public sector accounting standards requires that management makes estimates and assumptions that affect the reported amounts of assets and liabilities as at the date of the financial statements and revenues and expenses during the reporting period. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant estimates are related to premiums, administration costs, benefit repayments, allowances for doubtful accounts, estimated overpayments and underpayments of benefits disclosed in Note 8, contingent liabilities and the amounts presented in Schedule II. Actual results could differ significantly from those estimates.

3. Due from claimants

Table Summary

The table presents, in thousands of dollars, a two‑year comparative of amounts due from claimants. It consists of three columns: a detailed listing of components; current year; previous year. The first series of rows presents the benefit overpayments receivable plus the amount of penalties and interest receivable. The following rows present the allowance for doubtful accounts to be subtracted and the estimated benefit repayment receivable from higher income claimants. A final row presents the total for this table.

(in thousands of dollars)

  2015 2014
Benefit overpayments and interests receivable 559,516 560,786
Amount of penalties and interests receivable 130,688 126,168
Subtotal 690,204 686,954
Less: allowance for doubtful accounts 321,756 282,073
Total 368,448 404,881
Estimated benefit repayments receivable from higher income claimants 344,029 321,935
Total 712,477 726,816

The Commission detects overpayments on claims processed during the current and preceding years. These overpayments are accounted for by reducing the benefit expenses during the year in which they are established. During the year, overpayments totalling $263 million were established ($302 million in 2013–2014).

The Commission may also impose penalties on a claimant or an employer when it becomes aware that information they have provided is false or misleading. The Act sets the maximum amounts that may be imposed in these cases. During the year, the Commission imposed penalties totalling $40 million ($41 million in 2013–2014).

During 2014–2015, the Commission recovered $266 million ($277 million in 2013–2014) of benefit overpayments and $36 million ($42 million in 2013–2014) of penalties. Uncollectible benefit overpayments and penalties written off during the year amounted to $8 million and $2 million respectively ($52 million and $18 million in 2013–2014).

In accordance with Treasury Board regulations, the Account charges interest on outstanding employment insurance debts caused through misrepresentation and on penalties.

Table Summary

The table presents, in thousands of dollars, a two-year comparative of interest charged on outstanding employment insurance debts. It consists of three columns: a detailed listing of components; current year; previous year. The first row presents the interest on overpayments and the second row presents the interest on penalties. A final row presents the total for this table

(in thousands of dollars)

  2015 2014
Interest on overpayments 9,416 19,018
Interest on penalties 3,370 6,671
Total 12,786 25,689

The Commission establishes an allowance for doubtful accounts by aging the balance of the accounts receivable outstanding and by applying varying percentages based on past recovery experience to the aging categories so determined.

4. Amounts payable

Table Summary

The table presents, in thousands of dollars, a two‑year comparative of amounts payable. It consists of three columns: a detailed listing of components; current year; previous year. The first series of rows presents the various amounts payable to Canada. The second series of rows presents the various amounts payable to provinces. A final row presents the total for this table.

(in thousands of dollars)

  2015 2014
To Canada    
Administration costs 32,277  
Federal tax deductions from benefits 30,188 25,051
Other deductions from benefits 1,791 1,472
Amounts payable related to Labour Market Development Agreements 5,868 5,985
Subtotal 70,124 32,508
To provinces    
Quebec tax deductions from benefits 4,803 4,028
Other deductions from benefits 1,101 1,424
Subtotal 5,904 5,452
Total 76,028 37,960

5. Financial instruments

The fair values of the premiums receivable, due from claimants, amounts receivable from Canada, benefits payable and amounts payable are considered by management to be comparable to their carrying values because of the short term maturity of these instruments. All of these financial instruments arose in the normal course of business.

6. Comparison of results against budget

The budget amounts included in the Statement of Operations and Accumulated Surplus (Deficit) and the Schedule I — Benefits and Support Measures, are part of the amounts reported in the Employment and Social Development Canada's future oriented consolidated financial statements included in the 2014–2015 Report on Plans and Priorities.

7. Premiums

Premiums for the fiscal year are measured by the Canada Revenue Agency (CRA) based on amounts assessed and reassessed at the time of preparation of its financial statements and an estimate of premiums earned in the period but not yet assessed or reassessed.

Premiums revenue includes an estimate of premiums earned in the fiscal year but not yet assessed or reassessed at the time of preparation of the financial statements. Fiscal year 2014–2015 includes $8,120 million in forecasted premium revenues for the 3‑month period from January to March 2015 ($7,845 million in 2014), or approximately 34.59 percent (34.60 percent in 2014) of the total forecast premium revenues of $23,472 million for calendar year 2015 ($22,675 million for 2014), net of reductions and refunds. This estimate is based on the forecasted total insurable earnings of $567,785 million in calendar year 2015 ($555,548 million in 2014). The total insurable earnings forecasts are mainly dependent upon the projected growth in both employment (0.74 percent in 2015 and 1.47 percent in 2014) and average wages (2.58 percent in 2015 and 2.35 percent in 2014).

A variation in these assumptions would have an impact on the total insurable earnings forecasted and consequently, forecasted premium revenues. The sensitivity analysis below was determined based on changes to the respective assumptions while holding all other assumptions constant:

Table Summary

The table presents an analysis of assumption sensitivity based on changed and constant assumptions. It consists of three columns: Variable; Variation; Forecasted Premium Revenues — January–March 2015. The first row presents the employment growth. The second row presents the average wages.

Variable Variation Forecasted Premium Revenues
January-March 2015
Employment growth +/- 0.1% +/- 8 million
Average Wages +/- 0.1% +/- 3 million

Actual premium revenue for calendar years 2014 and 2015 will only be known once the CRA has processed all employer declarations of premiums for these years. An adjustment for the difference between actual and estimated premiums will be recorded in the fiscal year in which the actual assessment or reassessment results are known. The difference between estimated and actual premiums revenues for calendar year 2013, as known at the time of the preparation of the financial statements and included in these financial statements is a decrease in revenues of $28 million ($59 million increase for calendar year 2012 in 2013–2014 financial statements).

For the following calendar years, premium rates for each $100 of insurable earnings were set under Section 66 of the Act at:

Table Summary

The table presents, to the nearest dollar, a three‑year comparative of the premium rates for each $100 of insurable earnings. It consists of four columns: a detailed listing of components; current year and the previous two years. The first series of rows presents the premium rates for residents of provinces without a provincial plan, by employees and employers. The second series of rows presents the premium rates for residents of provinces with a provincial plan, by employees and employers.

(in dollars)

  2015 2014 2013
Residents of provinces without a Provincial Plan      
For employees 1.88 1.88 1.88
For employers (calculated at 1.4 times the employee rate) 2.63 2.63 2.63
Residents of provinces with a Provincial Plan      
For employees 1.54 1.53 1.52
For employers (calculated at 1.4 times the employee rate) 2.16 2.14 2.13

The annual maximum insurable earnings for 2015 is $49,500 ($48,600 in 2014 and $47,400 in 2013).

8. Estimated overpayments and underpayments of benefits

Given the large volume of claims and the need for prompt service, the Commission applies a risk–based approach to its control procedures. The verification of claims is conducted both prior to and after claimants have begun to receive benefits, using a combination of up–front and automated control measures and post–payment verification activities.

In order to measure the accuracy of benefit payments, the Commission has a program in place which establishes an annual payment accuracy rate and estimates, through statistical extrapolation, the most likely value of incorrect benefit payouts. For benefits paid during the twelve months ended March 31, 2015, these undetected overpayments and underpayments are estimated to be $624 million and $145 million respectively ($589 million and $157 million in 2013–2014). The annual payment accuracy rate (which is comprised of three error sources: claimant, employer and administrative) and estimated value of errors are used by the Commission to assess the quality of decisions and the need, if any, to improve its systems and practices of processing claims.

The overpayments established during the year, as indicated in Note 3, are not directly linked to the above noted estimated overpayments and underpayments of benefits for the same period.

9. Administration costs

The administration costs of the Act are primarily based on a formula allocating the expenses between Employment and Social Development Canada and the Account. The expense allocation formula takes into consideration the source of funding, from the Account or from the Consolidated Revenue Fund. In addition, the administration costs incurred by the provinces and the territories to administer the Labour Market Development Agreements are included in the administration costs for the year based on provisions in the agreements.

Various functions executed by CRA on behalf of the Account such as collection of premiums, rulings, etc. are charged based on a memorandum of understanding updated annually.

Table Summary

The table presents, in thousands of dollars, a two‑year comparative of the administration costs. It consists of three columns: a detailed listing of components; current year; previous year. The first five rows list different administration costs followed by a subtotal. The following row presents the recovery of costs. The final row presents the total.

(in thousands of dollars)

  2015 2014
Program policy and delivery, accommodation and corporate services, including cheque issue 370,460 386,306
Personnel related costs, including the Health Insurance Plan 883,027 898,729
Collection of premiums and rulings 212,268 208,921
Administrative services related to courts/tribunal 5,077 939
Administration costs incurred by provinces and territories under the Labour Market Development Agreements 190,957 189,708
Subtotal 1,661,789 1,684,603
Deduct: recovery of costs for maintaining the social insurance number registry and issuing replacement cards 4,734 4,405
Total 1,657,055 1,680,198

10. Related party transactions

The Account is a component of the Government of Canada reporting entity and is therefore related to all departments, agencies and Crown corporations. The Account enters into transactions with these entities in the normal course of operations, which are recorded at the exchange value.

Table Summary

The table presents, in thousands of dollars, a two‑year comparative of the related party transactions. It consists of three columns: a detailed listing of components; current year; previous year. The first two rows present Employment and Social Development Canada transactions followed by a subtotal. The following rows present the transactions of the other departments, agencies and Crown corporations followed by a subtotal. The next row presents the recovery of costs for maintaining the social insurance number registry and issuing replacement cards. The final row presents the total.

(in thousands of dollars)

  2015 2014
Employment and Social Development Canada    
Program policy and delivery, accomodation and corporate services, including cheque issue 370,460 386,306
Personnel related costs 823,922 838,832
Subtotal 1,194,382 1,225,138
Canada Revenue Agency    
Collection of premiums and rulings 212,268 208,921
Treasury Board Secretariat    
Health Insurance Plan 59,105 59,897
Administrative Tribunals Support Service of Canada    
Social Security Tribunal 4,350  
Courts Administration Services    
Courts Administration Services 727 939
Total 1,470,832 1,494,895
Deduct: recovery of costs for maintaining the social insurance number registry and issuing replacement cards 4,734 4,405
Total 1,466,098 1,490,490

Employment Insurance premiums include the employer's share of premiums paid by the federal government of $398 million ($394 million in 2013–2014).

11. Contractual obligations

The nature of the Account activities can result in some large multi‑year agreements whereby the Account will be obligated to make future payments in order to carry out its transfer payment programs. Significant contractual obligations that can be reasonably estimated are summarized as follows:

Table Summary

The table presents, in thousands of dollars, the contractual obligations. It consists of seven columns: a detailed listing of components; the next four consecutive years and the fifth and thereafter years; total. The first row presents the Labour Market Development Agreements. The second row presents the other transfer payments. The final row presents the total.

(in thousands of dollars)

  2016 2017 2018 2019 2020 and thereafter Total
Labour Market Development Agreements 2,141,380         2,141,380
Other transfer payments 110,273 10,632 416     121,321
Total 2,251,653 10,632 416     2,262,701

Labour Market Development Agreements with eight of the provinces and territories require a two year notice for cancellation of the agreements. The obligations for 2017 cannot be reasonably estimated.

12. Contingent liabilities

In the normal course of the operations of the Account, numerous appeals against or by the Commission are presently outstanding. The outcome of these appeals is not presently determinable. Any claims resulting from the resolution of these appeals will be accounted for as an expense in the period in which the claim will be determinable. However, in the opinion of management, the result of these appeals should not have a significant impact on the operations of the Account.

In 2011–2012, a class action was filed with the Federal Court seeking damages of $450 million plus interest. The representative plaintiff alleges that she was improperly denied sickness benefits for an illness, injury or disability suffered while on parental leave, despite an amendment in 2002 to the Employment Insurance Act. The outcome of this claim is not determinable at this time.

13. Comparative information

Certain comparative figures have been reclassified to conform to the current year's presentation.

Table Summary

The table presents, in thousands of dollars, a two‑year comparative of the information on benefits and support measures for the year ended March 31. It consists of four columns; a detailed listing of components; current year's budget; current year's actual; previous year's actual. The first series of rows (Part I) presents the income benefits followed by a subtotal. The following series of rows presents the special benefits followed by a subtotal. The next row presents the income benefits subtotal. The next row presents the benefits repayments from higher income claimants followed by a total for Part I. The next series of rows (Part II) presents the employment benefits and support measures. The next row presents the employment benefits. The next rows present the support measures followed by a subtotal. The next row presents the total for Part II. The final row presents the total.

(in thousands of dollars)

Schedule I — Benefits and Support Measures for the year ended March 31

  2015
Budget (Note 6)
2015
Actual
2014
Actual
Part I — Income benefits      
Regular 10,833,000 10,885,655 10,497,792
Fishing 268,000 276,198 259,092
Work‑sharing 25,000 18,128 21,088
Subtotal 11,126,000 11,179,981 10,777,972
Special benefits      
Parental 2,527,000 2,549,601 2,390,382
Sickness 1,333,000 1,357,369 1,271,563
Maternity 1,077,000 1,090,629 1,031,061
Adoption   21,159 21,620
Compassionate care 13,000 12,729 11,879
Self‑employment 9,000 9,054 8,314
Parents of critically‑ill children 20,000 15,268 7,440
Subtotal 4,979,000 5,055,809 4,742,259
Income benefits total 16,105,000 16,235,790 15,520,231
Less: benefit repayments from higher income claimants 215,000 230,430 206,923
Part I Total 15,890,000 16,005,360 15,313,308
Part II — Employment benefits and support measures      
Employment benefits      
Transfer payments to provinces and territories related to Labour Market Development Agreements 1,950,000 1,930,727 1,872,026
Support measures      
Labour market partnerships   112,657 113,308
Research and innovation   3,439 1,959
Subtotal 127,000 116,096 115,267
Part II Total 2,077,000 2,046,823 1,987,293
Total Benefits and support measures 17,967,000 18,052,183 17,300,601

Benefit rates — Income benefits

The rates for income benefits are set on a calendar year basis. The maximum rate is $524 per week for the period from January to December 2015, and $514 per week for January to December 2014 ($501 per week for 2013). Benefits are paid at the lesser of 55 percent of average insurable earnings and the maximum rate. For claimants who are in a low‑income family with children, the rate may be increased up to the lessor of 80 percent of average insurable earnings and the maximum rate.

Table Summary

The table presents, in thousands of dollars, the Statement of operations and accumulated deficit for the period of January 1st to December 31st. It consists of three columns: a detailed listing of components; current calendar year; previous calendar year. The first series of rows presents the revenues followed by a subtotal. The second series of rows presents the expenses followed by a subtotal. The next row presents the net surplus before funding from the Government of Canada. The next row presents the funding from the Government of Canada. The next row presents the net surplus for the period. The final two rows present the accumulated deficit at the beginning of the period and at the end of the period.

(in thousands of dollars)

Schedule II — Statement of Operations and Accumulated Deficit for the period of January 1st to December 31st

  2014 2013
Revenues    
Premiums 22,800,907 21,618,650
Penalties 38,971 47,234
Interest on overdue accounts receivable 25,062 29,244
Subtotal 22,864,940 21,695,128
Expenses    
Income benefits and support measures 15,989,386 15,367,921
Transfers to provinces and territories related to Labour Market Development Agreements 1,929,977 1,872,026
Benefits repayments from higher income claimants (negative 226,652) (negative 186,692)
Administration costs 1,663,134 1,708,221
Bad debts 41,637 11,548
Subtotal 19,397,482 18,773,024
Net surplus for the period 3,467,458 2,922,104
Accumulated deficit at the beginning of the period (negative 5,201,480) (negative 8,123,584)
Accumulated deficit at the end of the period (negative 1,734,022) (negative 5,201,480)

The estimates provided in this Schedule for calendar year 2014, which is prepared in accordance with Canadian public sector accounting standards, are used by the Government of Canada to establish the Employment Insurance premium rate for the following calendar year. The mechanism for setting the Employment Insurance premium rate is designed to ensure that revenues and expenditures break even over time.

Public Accounts of Canada 2015 Volume I - Bottom of the page Navigation