The federal government recently announced an increase in the employment insurance (EI) maximum insurable earnings amount and a corresponding increase in the EI weekly maximum benefit. Effective Jan. 1, 2010, maximum insurable earnings will increase to $43,200 per year from $42, 300. Accordingly, the new maximum EI benefit amount will be $457 per week ($43,200 at 55 per cent, over 52 weeks).

Short-term disability (STD) plans that have a maximum set at the EI maximum, rather than at a specific amount, will automatically increase effective Jan. 1.

If your plan has a specific dollar maximum that is less than $457 per week, and you participate in the EI premium reduction program, you will need to amend your plan to at least $457 per week in order to remain eligible for the program.

If your STD plan has a specific dollar maximum and you participate in the EI premium reduction program, you may wish to consider amending your plan to a maximum that is automatically adjusted to the EI maximum. This will avoid the need for future amendments whenever the EI maximum changes.

For more information:
Please contact our office if you have questions about this change or its impact on your benefit plan. info@ascensionbenefits.com