Employee
Benefits & Services
CEmployment Insurance Increase and STD Plans
Effective
January 1, 2008, the Maximum Insurable Earnings (MIE) for
Employment Insurance (El) increased from $40,000 to $41,100. This means the Maximum Weekly
Insurable Earnings (MWIE) increased from $769 to
$790.
Prior to
January 1, 2008, the El benefit was 55% of the MWIE to a
maximum of $423. (55% of $769 = $422.95. Rounded to the
nearest dollar = $423 a week)
As of January 1, 2008, the El benefit is 55% of the MWIE to
a maximum of $435. (55% of
$790 =
$434.50. Rounded to the nearest dollar = $435 a week)
How Does This Affect You?
If your Group Policy includes a Short Term Disability (STD)
benefit with a maximum that is to equal the El maximum, to
comply with the provisions of your Policy, the
maximum STD
benefit must at least equal the new El maximum ($435).
If you register your STD
benefit with El, it is
mandatory that your STD
maximum equals at least 55% of the
El Maximum Weekly
Insurable Earnings ($435).
What Is your insurer
Doing?
If your STD
Plan has a maximum that is between $423 and $434, effective
January 1, 2008:
·
The maximum for your STD benefit will generally be
automatically increased to $435 (as specified
in your Policy).
·
The STD amounts for your employees will be increased to a
maximum of $435 (if applicable and in accordance with your
STD plan) and will show on your next
Group Insurance Billing.
NOTE:
If
your STD Plan currently has a maximum that is higher than
$435, no
change will be made to the STD maximum or to your employees'
STD
amounts unless and until you notify your insurer in writing
that a change should be
made. However, if your STD Plan has more than one
classification of
employees and at least one of the classifications has a $423
maximum and the
other maximums are different but also tied into the El MWIE,
all of the maximums
will be updated based on the percentage of El MWIE shown
in your Policy.
