Put the CEFIB out of its misery

Scott Clark and Peter DeVries hope C-45 marks the end of the Canada Employment Insurance Financing Board.

In the second Budget Omnibus Bill related to the 2012 Budget, the Government proposes to suspend the operations of the Canada Employment Insurance Financing Board (CEIFB) until such time the Employment Insurance (EI) Operating Account returns to balance. According to the 2012 Budget, this is not expected until 2016. Is this the end of the CEIFB? Lets hope so.

The CEIC was established in 2008 to “set EI premium rates for the upcoming year in a transparent fashion”. This has never happened. In every year since its creation, the Government has overridden the rate recommended by the CEIC through an Order-in-Council. In the March 2012 Budget, the Government proposed further changes to the EI rate-setting process. The employee EI rate is now to be limited to a 5 cent per year increase until the EI Operating Account is balanced. This precludes the CEIFB from setting rates for at least another four years.