Bill C-50: Improving the Employment Insurance Program

Budget 2008 delivered a focused and prudent economic plan for Canada which benefits all Canadians.

Bill C-50 was tabled in the House of Commons this spring to implement key measures of the budget. One of those key measures was to improve the management and governance of the Employment Insurance (EI) program through the creation of the Canada Employment Insurance Financing Board (CEIFB). This board would be an independent Crown corporation with a legislated structure which ensures that EI premiums are dedicated exclusively to the EI program.

The governance and management of the EI account has been an issue for several years. For example, in 2005, the Standing Committee on Human Resources, Social Development, and the Status of Persons with Disabilities heard from stakeholders through a study and later reported its findings in Restoring Financial Governance and Accessibility in the Employment Insurance Program.

Bill C-50 responds to concerns raised by many stakeholders representing workers and employers, experts, and elected officials regarding how the EI account should be managed.

CEIFB will be set up as a Crown corporation working at arm's length of the federal government. It will ensure that EI financing decisions are taken independently and separate from the government's responsibilities regarding benefit determination and payment.

The proposed CEIFB will be responsible for: • Implementing an improved EI premium rate-setting mechanism that will ensure EI revenues and expenditures break even over time; • Managing a new bank account, separate from the government's general revenues, where any excess EI premiums from a given year will be held and invested until they are used to reduce premium rates in subsequent years; • Maintaining a $2 billion cash reserve as a contingency fund that will support relative premium rate stability.

Furthermore, the EI premium rate setting mechanism will be improved so that any surplus premiums and income from investments from one year will be taken into account when setting the subsequent year's rate. This measure will ensure that over time, premiums collected won't exceed benefits paid.

The CEIFB will be run by seven part-time directors who have the necessary skills and expertise to effectively carry out the organization's mandate. Qualified members will be selected, following recommendations made by a nominating committee, which would include the commissioners for workers and the commissioner for employers and will be appointed through Governor-in-Council. Through the process, business and labour can be assured that the most qualified individuals are selected to manage decision-making on the financing of the EI program.

The board of directors will develop a corporate plan and a budget to be reviewed by the Treasury Board and Parliament as part of the estimates process. The incremental costs of operation for the new activities and responsibilities of the CEIFB are expected to represent only a fraction of the additional returns on investment not previously realized under the old system.

The proposed Canada Employment Insurance Financing Board modernizes an important Canadian institution and ensures independent decision-making with respect to the management of EI funds and ensures that these funds are used to pay for EI benefits. Furthermore, the CEIFB will ensure that Canadians pay the right premium rates; that the EI program has firm financial footing going into the future; and is well-positioned to withstand changing economic conditions. It's our government's plan to improve the management and governance of the EI program for all Canadians.

June is ALS Month

June is ALS Awareness Month.

ALS stands for Amyotrophic Lateral Sclerosis and is also known as Lou Gehrig's disease. It is a devastating disease that affects approximately 2,500 to 3,000 Canadians. An estimated two to three Canadians die of ALS each day, making it the most common cause of neurological death. This is an important reason for all of us to do our part to raise awareness of ALS and to support efforts for research and support services during the month of June.

ALS is a progressive neuromuscular disease in which nerve cells die and leave voluntary muscles paralyzed. Individuals living with ALS maintain their senses, as well as their intellect; however, they become progressively paralyzed due to the degeneration of the upper and lower motor neurons in the brain and spinal cord. The disease can strike anyone, both men and women, the young and old, but is most commonly diagnosed in middle and late adulthood. Furthermore, ALS can strike all ethnic and socio-economic groups.

Approximately 80 per cent of individuals diagnosed with ALS will die within two to five years of diagnosis, leaving them unable to breathe or swallow. While some individuals live longer with the disease, others die within a few short months. It is also a disease that affects the entire family. ALS patients require costly equipment and care and 90 per cent of the burden of care falls upon the shoulders of family members. Therefore, ALS is a drain on the physical, emotional, and financial resources of caregivers, as well as those suffering with the disease.

I have been personally affected by this disease as my father succumbed to ALS a number of years ago and in 2005, I introduced a private member's bill that would ensure that June of every year in Canada would be known as ALS month.

The cause of ALS is unknown and there isn't an effective treatment and no known cure, which underscores the importance of increasing awareness of this disease across Canada. Raising awareness of ALS is a key program of the ALS Society of Canada and its provincial societies.

During June, ALS Canada and the provincial societies work together to raise awareness of ALS and to raise funds for research and support services. We can all do our part to assist these efforts by purchasing a cornflower, which is the emblem of the ALS Society (because it is the international flower of hope for the disease). Locally, individuals and groups can participate in a wide range of activities to raise awareness in their communities. For more information on the many activities and fund-raising events of the ALS Society of Canada, please visit their Web site at www.als.ca

If we all do our part, by even just wearing a blue cornflower, we can increase research and funds to support those who suffer from this devastating disease.

June is Stroke Awareness

Month

Currently, 15,000 people die each year from strokes, making it the fourth leading cause of death in Canada.

Those who survive a stroke are often never free of its effects and may be plagued by a host of lifechanging disabilities, including, but not limited to, partial paralysis, memory loss, vision issues, as well as balance and coordination problems. An astonishing 272, 000 people are living with the side effects of a stroke, resulting in the disease costing the Canadian economy $2.7 billion annually. Clearly, such a destructive disease deserves our utmost attention and Canadians should strive to support current research and fund-raising initiatives throughout Stroke Awareness Month and beyond.

There is no definitive way to determine who will have a stroke. However, there are several conditions that will increase one's likelihood of suffering a stroke.

Controllable factors include obesity, high blood pressure, high cholesterol, physical inactivity, diabetes, smoking and excessive alcohol consumption.

Uncontrollable factors include age, gender, family history, ethnicity and prior strokes.

The risk for stroke is increased by the above uncontrollable factors, but it is still possible to decrease your risk by managing all of the controllable causes. The easiest way to do this is by adopting and maintaining a healthy active lifestyle, which significantly reduces the controllable risk factors. A healthy active lifestyle includes healthy eating habits and regular physical activity.

In order to ensure your diet is healthy and appropriately balanced, the Canadian government recommends following the Canadian Food Guide. The guide is easily accessible through Health Canada's Web site at, http://www.hcsc. gc.ca/fn-an/food-guidea liment/order- commander/index_e.html, or alternatively by dialing 1- 800-O-Canada (1-800-622- 6232).

The Canadian government also provides a physical activity guide, which recommends building up to 30 to 60 minutes of physical activity each day for adults, and at least 90 minutes for children. The guide can be found at http://www.phaca spc.gc.ca/pau- uap/paguide/index.html.

Living a healthy, active lifestyle is the simplest and best way to reduce your risk for stroke, but with no perfect avoidance strategy, it is important to be familiar with all of the warning signs. By paying close attention to warning signs and immediately discussing them with a health care professional you can limit the potentially lasting effects of a stroke. The most common warning signs include sudden weakness, numbing or tingling, loss of speech, loss of vision, severe or unusual headaches and unprovoked falls.

It is hoped that by raising awareness and increasing Canadians' knowledge of the signs, symptoms, and potential ways to limit their risk of suffering a stroke, we can significantly reduce the number of deaths and lasting disabilities caused by strokes every year.

Start saving for your

child's education today

We all want our children to have the best postsecondary education possible.

However, we all know that this education can often be very expensive. The best way to plan for our children's future is to start planning today. Even if you don't have a lot of money to set aside, a few dollars each week can surprisingly add up quickly.

Our government is committed to helping all families save and prepare for post-secondary education through initiatives like the Canada Education Savings Grant, the Registered Education Savings Plan (RESP) and the tax-free savings account.

The Canada Education Savings Grant (CESG) is offered by the government of Canada to help you start saving for your child's education after high school. When you save in your child's RESP, the grant could add up to $200 on the first $500 you save annually, and up to $400 on the next $2,000. This money can be used for full-time or parttime studies in an apprenticeship program, trade school, CEGEP, college, or university.

Children up to the age of 17 years are eligible to receive the Canada Education Savings Grant, as long as they are Canadian residents and a RESP has been opened for them. It is also important to note that there are special rules that may apply if your child is between the ages of 15 and 17 years. For more information, please call 1- 800-O-Canada (1-800-622- 6232).

You can begin a Canada Education Savings Grant in two easy steps. The first step is to obtain a Social Insurance Number (SIN) for your child, even if your child is an infant. There is no fee to apply, but keep in mind that certain documents (i.e. a birth certificate) are required. The second step is to open an RESP account. This can be done through a financial institution, such as a bank or credit union, or through a certified financial planner, or a group plan dealer. Once the RESP has been established, the grant will be directly deposited into your child's RESP. The money in the RESP will be invested, to allow it to grow and earn interest. You won't be taxed on the interest and your child can usually withdraw the money taxfree. It's also important to note that you should shop around to find a RESP provider that best suits your needs.

The advantage of the RESP is that no matter how little you save in the account, the federal government will still pay the grant. Furthermore, your family and friends can also contribute money into your child's RESP. The earlier you begin to save, the more your savings will grow for later. The savings can be substantial. For example, on the first $500 you save in your child's RESP, the Canada Education Savings Grant will give you: • up to $200, if your net family income is $37,178 or less; • up to $150, if your net family income is between $37,178 and $74,357; and • up to $100, if your net family income is more than $74,357.

The family net income amounts are updated each year based upon the rate of inflation. If you save more than $500 annually for your child's education, the grant could add up to $400 on the next $2,000. The maximum grant your child can receive is between $500 and $600 per year and $7,200 per grant lifetime.

For more information on both the Canada Education Savings Grant and the Registered Education Savings Plan, please feel free to call 1-800-O-Canada (1-800-622-6232), or visit a local Service Canada office, or visit www.canlearn.ca.

Our government is also helping parents to save for the long-term by introducing the tax-free savings account in Budget 2008. This initiative is a flexible, registered, general-purpose account that parents may use towards their child's education. Parents can contribute up to $5,000 every year to a registered tax-free savings account, plus carry forward any unused room to future years. The investment income, including capital gains, earned in the plan will be exempt from any tax, even when withdrawn. Parents and individuals can withdraw from the account at any time without restriction. Better yet, there are no restrictions on what parents and individuals can save for and the full amount of withdrawals may be recontributed to their tax-free savings account in the future, to ensure no loss in a person's total savings room.

Our government is working hard to ensure every child in Canada is given the opportunity to succeed. We are doing this through initiatives like the Canada Education Savings Grant, the Registered Education Savings Plan, and the tax-free savings account. Each of these measures give parents the opportunity to begin to save today for tomorrow.