Employment Insurance (EI) sickness benefit changes from 15 to 26 weeks FAQ

1. What is changing?

   Effective December 18, 2022, the Government of Canada is changing its EI sickness benefit from 15 weeks to 26 weeks.

2. Do I need to make changes to my current plan design?

   No, there is no legislative requirement to change current short-term disability, long-term disability, or self-insured sick leave plans.

   However, plan sponsors with either a long-term disability plan with an elimination period that starts before 26 weeks or a short-term disability plan with an EI carve-out provision may want to consider changes to their current plan.

   Speak to your Pacific Blue Cross Account Executive if you are interested in exploring your options for disability coverage.

3. I have a long-term disability (LTD) plan that starts before 26 weeks: what does this change mean for me?

   If your LTD plan has an elimination period that starts before 26 weeks, there is potential for overlap with EI and LTD where an employee could be overpaid. If an employee receives EI and LTD benefits at the same time, the employee may be required to refund part of their EI benefit.

   Consider reminding your employees that they should close their EI sickness claim once they are approved for LTD benefits to avoid overpayment.

4. I have a LTD plan that starts before 26 weeks: should I extend my elimination period?

   There is no legislative requirement to change disability or self-insured sick leave plans.

   There are several aspects to consider before changing your elimination period, including impacts to early intervention and case management expertise.

   We encourage you to reach out to your Pacific Blue Cross Account Executive to discuss your options.

5. I have a short-term disability (STD) plan with an EI carve-out provision: what does this change mean for me?

   Carve-out plans are designed to provide STD benefits in two parts: early on in an absence and after EI ends. The extension of EI benefits will directly impact the second part of these benefit plans. If an employee receives EI and STD benefits at the same time, the employee may be required to refund EI benefits.

   Most plan sponsors with STD with an EI carve-out provision will want to pursue changes to their plan. We encourage you to reach out to your Pacific Blue Cross Account Executive to explore your options.

6. Do I need to communicate anything to my plan members?

   You may wish to remind your employees who are claiming EI sickness benefits that it is important to notify EI of any disability benefits they are entitled to. This is to avoid potential EI overpayments.

7. When is the best time to make changes to my LTD or STD plan?

   Some LTD and STD plans are negotiated, so there may be specific timeframes when changes can be made to plan designs. Please reach out to your Pacific Blue Cross Account Executive if you have further questions on the timing of any changes you are considering.

8. Are there changes to the EI Premium Reduction Program?

   There has been no announcement for changes to the EI Premium Reduction Program (PRP), although changes are expected before the end of 2023.

   Since eligibility criteria is not changing, all plans that currently qualify for the premium reduction will remain eligible and are not required to make a change at this time.

   We will keep you informed of any new government changes in future.

9. Who can I talk to for more information?

   Speak to your advisor or Pacific Blue Cross account executive for more information on how this change will impact you and your plan members. They can also help you explore your options for disability coverage.