Class Notes (784,733)
Canada (481,323)
Economics (660)
ECO244Y5 (9)
Lecture 2

Week 23

5 Pages
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University of Toronto Mississauga
Reid/ Curran

Textbook: Week 23 - Chapter 13 Government-Sponsored Benefits Employment Insurance (EI) Employment Insurance is a federal program that provides income benefits if a person is unable to work through no fault of hisher own. Ex. Getting laid off for an unjust reason. To receive benefits, an employee must first have worked a minimum number of hours during a minimum number of weeks, which is called a qualifying period. Then theres a waiting period from the last day of work and until the benefits begin. If the employer provides severance pay at the time of losing the job, these payments must run out before the waiting period being. Employer contributions can be reduced if the employer provides a wage loss replacement plan for employee sick leave. A supplemental unemployment benefit (SUB) plan is an agreement between an employer and the employee for a plan that enables employees who are eligible for EI benefits to receive additional benefits from a SUB fund created by the employer. They use this when the employee is on maternity leave. CanadaQuebec Pension Plan (CQPP) CQPP are programs that provide three types of benefits: retirement pensions, disability pensions, and survivor benefits.. Benefits are payable only to those individuals who make contributions to the plans andor available to their family members. Retirement Pension o Calculated as 25% of the average earnings over the years during which contributions were made. o Benefits are reduced on early retirement and are increased in the case of late retirement. Disability Benefits o Are only paid for severe disabilities that are expected to be permanent or to last for an extended period. o The disability benefit is 75% of the pension benefit earned at the date of the disability, plus a flat-rate amount per child. Survivor Benefits o Are benefits paid on the death of a plan member. o A lump sum payment is made to the plan members estate, and a monthly pension is also payable to the surviving spouse and each dependent child. Workers Compensation Workers compensation laws are aimed at providing sure, prompt income and medical benefits to victims of work-related accidents or illnesses andor their dependants, regardless of fault. This is basically a no fault insurance plan designed to help injured or ill workers get well and return to work. The basic requirement that an employee need in order to qualify for the compensation is that they must prove that it arose while the employee was on the job. Controlling Workers Compensation Costs o Control the accidents from happening by reducing anything that can cause accidents. o Ther arFirms try to reduce accidents- or illness-causing conditions in the company by having safety and health programs.
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