BENEFITS LEGISLATION IN CANADA 2015 - Mercer Canada | … · in excess of YBE (maximum contribution in 2015: $4,959.90) – QPP: 10.50% of employment earnings up to YMPE, in excess

BENEFITS LEGISLATION INCANADA 2015This document summarizes Canadian legislation affecting benefits plans (except Nunavut and Northwest Territories).Canadian legislation covers a broad range of social and tax measures directly affecting employer-sponsored protectionprovided to employees.

Revised December 19, 2014

I. Old Age Security Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

II. Canada/Québec Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

III. Private Pension Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

IV. Employment Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

V. Human Rights and Equity Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

VI. Public Hospital and Medical Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

VII. Family Leaves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

VIII. Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36

IX. Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38

X. Saskatchewan Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

XI. Provincial Health Insurance Coverage Outside of Canada . . . . . . . . . . . . . .42

TABLE OF CONTENTS

1. OLD AGE SECURITY (OAS) PENSION

■ From age 65, regardless of means, subject toresidence requirements, full monthly pension of$563.74 as at January 1, 2015

■ Voluntary deferral of OAS pension for up to60 months, adjusted pension to be calculated on anactuarially neutral basis

■ Full pension if 40 years of resi dence in Canada afterage 18; otherwise, full pension if at least age 25 onJuly 1, 1977, lived in Canada on that date (or hadlived in Canada before that date, but after age 18),and has lived in Canada for 10 continuous yearsprior to the OAS pension application (each missingyear during the 10-year period may be replaced by3 years of earlier residence in Canada, provided theperson lived in Canada during the whole year beforethe application)

■ Persons not eligible for a full pension: partialpension of 1/4 0 of full pension per year of residenceafter age 18, if at least 10 years of residence afterage 18

■ Special provisions apply to immigrants fromcountries that have a social security agreement withCanada

■ Clawback: OAS pensioners with net incomeexceeding $72,809 in 2015 must repay 15% of theexcess net income up to the full OAS amount; basedon the OAS pension as at January 1, 2015, the fullOAS pension would be eliminated if the pensioner’snet income were $117,909 or above; since July 1,1996, OAS benefits are reduced at the time ofpayment to reflect the clawback

2. GUARANTEED INCOME SUPPLEMENT (GIS)

■ Subject to income test and residence requirements

■ OAS pensioners age 65 or over

■ Maximum monthly benefit as at January 1, 2015:

– $764.40 for single pensioner or for pensionerwhose spouse is not receiving OAS pension or theAllowance

– $506.86 for each spouse when both are receivingOAS pension or for pensioner whose spouse isreceiving the Allowance

■ Additional income supplements of varying amountsalso paid by Alberta, British Columbia, Manitoba,New Brunswick, Newfoundland and Labrador,Ontario, Saskatchewan and Yukon

3. ALLOWANCE AND ALLOWANCE FOR THESURVIVOR

■ Subject to income test and residence requirements

■ Payable to eligible spouses and surviving spouses ofOAS pensioners aged at least 60 but less than 65

■ As at January 1, 2015, maximum monthly allowancefor spouses is $1,070.60 and maximum allowancefor surviving spouses is $1,198.58

4. FUTURE CHANGES TO THE AGE OF ELIGIBILITYFOR OAS, GIS, ALLOWANCE AND ALLOWANCEFOR THE SURVIVOR

■ From April 1, 2023, the age of eligibility for OASpension and GIS benefits will be gradually increasedfrom 65 to 67, with complete implementation byJanuary 2029. Also, the age of eligibility for theAllowance and the Allowance for the Survivor willgradually increase from 60 to 62 over the same period

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I. OLD AGE SECURITY ACT

Payments indexed quarterly to reflect changes in cost of living

■ Year’s Maximum Pensionable Earnings (YMPE) areindexed every year in accordance with a wage indexunder the Québec Pension Plan (QPP) and theCanada Pension Plan (CPP): $53,600 in 2015

■ Year’s Basic Exemption (YBE) under the QPP andthe CPP: $3,500

■ Pensions indexed annually based on cost-of-livingincreases: 1.8% increase, effective January 1, 2015

1. CONTRIBUTIONS

■ Employee contribution rate:

– CPP: 4.95% of employment earnings up to YMPE,in excess of YBE (maximum contribution in 2015:$2,479.95)

– QPP: 5.25% of employment earnings up to YMPE,in excess of YBE (maximum contribution in 2015:$2,630.25)

■ Employer contribution rate:

– CPP and QPP: Same rate as for employees

■ Self-employed contribution rate:

– CPP: 9.9% of employment earnings up to YMPE,in excess of YBE (maximum contribution in 2015:$4,959.90)

– QPP: 10.50% of employment earnings up toYMPE, in excess of YBE (maximum contribution in2015: $5,260.50)

■ CPP: contributions are required for every retiredperson under age 65 who chooses to work (optionalfor every retired person over age 65 up to age 70);contributions will provide additional pensionthrough the Post-Retirement Benefit (PRB)

■ QPP: contribution is required for every retiredperson who works if earnings exceed the YBE; thecontributions for a given year will give entitlementto an additional lifetime pension from January 1 ofthe following year (Retirement PensionSupplement); the pension will continue to increaseon a yearly basis as long as the retired personcontinues to be employed and to contribute to theQPP

■ QPP: in case of phased-in retirement, QPPcontributions may be made based on a full salary

2. RETIREMENT BENEFITS

■ Eligibility:

– CPP: if at least one valid contribution is made,from age 60

– QPP: if contributions made for at least one year,from age 65; persons age 60 to 65 whocontributed for at least one year can receive apension even if they are still working

■ Monthly benefits:

– CPP and QPP: 25% of average monthlypensionable earnings ad justed in relation to

II. CANADA/QUÉBEC PENSION PLAN

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average YMPE in the year of retire ment and thepreceding 4 years; subject to certain restrictions,some months of lowest earnings may be droppedin the calcula tion of the average pensionableearnings, or replaced by months after age 65

– CPP and QPP: Maximum monthly pensionpayable from age 65 in 2015: $1,065.00

■ CPP: Pension reduced by 6.96% per year if takenbetween ages 60 and 65 (maximum of 34.8%);increased by 8.4% per year if taken after age 65(maximum of 42%)

■ QPP: Pension reduced by 6% per year for personsborn before January 1, 1954, by 6% to 6.72%depending on the amount of pension for personsborn after December 31, 1953; increased by 8.4%per year if taken after age 65 (maximum of 42%)

■ Post-Retirement Benefit/Retirement PensionSupplement

– CPP: Maximum monthly Post-Retirement Benefit(at age 65) in 2015: $26.63

– QPP: Maximum monthly Retirement PensionSupplement in 2015: $20.42

■ Pensionable earnings may be split equally betweenparties for benefit and eligibility purposes in case ofdivorce, separation or declaration of nullity ifspouses cohabited for a minimum period

■ Spouses may share their pension if they are age 60or over

■ CPP: retirement benefits for disability pensionrecipients from 1998 are based on the benefit attime of disability indexed to inflation instead ofrecomputation at retirement

■ QPP: retirement benefits for disability pensionrecipients from 1999 are reduced by 0.5% for eachmonth for which they received a disabi l ity pensionbetween ages 60 and 65

3. DEATH BENEFITS

■ Eligibility: contributions during 1/3 of thedeceased’s contrib u tory period or 10 years,whichever is less (subject to a minimum of 3 years)

■ Lump-sum payment: lesser of 6 times deceased’smonthly retirement pension and $2,500 (CPP);amount of the contributions (minimum of $500), upto a maximum of $2,500 (QPP)

■ Surviving spouse’s monthly benefit:

– while spouse is under age 65:

• CPP: $181.75 + 37.5% of deceased’s retirementpension (maximum in 2015: $581.13); unlessdisabled or has depend ent children, spouseunder age 45 entitled to reduced benefit, andno benefit if under age 35

• QPP: fixed monthly amount + 37.5% ofdeceased’s retirement pension (for details, seetable on the following page)

– while spouse is age 65 or over: CPP/QPP, 60% ofdeceased’s retirement pension (maximum in2015: $639.00)

– if surviving spouse is also entitled to retirement ordisability bene fits, combined benefit is subject tovarious maximum amounts

■ Orphan’s monthly benefit: CPP/QPP, $234.87 perorphan in 2015; payable to dependent children only(under 18 or, for CPP only, under 25 if attendingschool); for CPP only, orphan may receive doublebenefits if both parents have died and were eligiblecontributors

4. DISABILITY BENEFITS

■ Definition of disability: inability to regularly performany sub stantially gainful occupation (under QPP,own occupation if age 60 or over); disability mustlikely result in death or be of indefinite duration

■ Eligibility: contributions in disabled’s contributoryperiod for:

– CPP: at least 4 (3 only for contributory period ofat least 25 years) of the last 6 years

– QPP (under age 60): at least 2 of the last 3 years,at least 5 of the last 10 years or for half of theyears (minimum of 2 years)

– QPP (age 60 to 65): at least 4 of the last 6 years

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II. Canada/Québec Pension Plan (cont’d)

RECENT CHANGES

■ Canada Pension Plan: effective January 1, 2015, changes to adjustments for early CPP take-up

■ Quebec Pension Plan: effective January 1, 2015, increase in contribution rate for employees, employers and self-employed and changes to adjustments for early QPP take-up

■ Monthly benefits payable from the 4th monthfollowing month of disability

■ Contributor’s monthly benefit: $465.84 (CPP) or$465.81 (QPP) + 75% of contributor’s retire ment

pension (maximum in 2015: CPP, $1,264.59; QPP,$1,264.56)

■ Children’s benefit: $234.87 (CPP); $74.57 (QPP)

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II. Canada/Québec Pension Plan (cont’d)

* 37.5% of deceased’s retirement pension is added to this amount.

SURVIVING SPOUSE’S BENEFIT UNDER QPP

AGE OF SPOUSE FIXED MONTHLY AMOUNT* MAXIMUM IN 2015

45 to 65 or disabled $465.81 $865.19

Non-disabled under 45 with dependent child $432.51 $831.89

Non-disabled under 45 without dependent child $119.30 $518.68

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III. PRIVATE PENSION PLANS

Registered pension plans are complex employee benefit programs that are governed by provincial and federal pensionlegislation with respect to minimum benefits and by the federal Income Tax Act with respect to maximum benefits. Thissection provides an overview of the provincial and federal pension legislation with respect to minimum benefits.

Please note that Yukon falls under federal pension legislation and Prince Edward Island has tabled pension legislation whichhas never been adopted.

ELIGIBILITYEmployees who belong to the class of employees for whom the plan is provided may

join the plan upon completion of the following conditions

JURISDICTIONS FULL-TIME EMPLOYEES PART-TIME EMPLOYEES

Alberta and BritishColumbia

■ 24 months of continuous service and■ earnings of 35% of YMPE in each of

2 consecutive calendar years precedingmembership



Federal, New Brunswick,Newfoundland andLabrador

■ 24 months of continuous service ■ 24 months of continuous service and■ earnings of 35% of YMPE in each of


Manitoba ■ mandatory membership after 2 years ofcontinuous service

■ mandatory membership after 2 consecutiveyears of continuous service if employee meetsthreshold specified by plan in each of2 consecutive calendar years precedingmembership (threshold can be based onearnings only, to maximum of 35% of YMPE;hours only, to maximum of 700 hours; ormeeting either earnings test (maximum of35% of YMPE) or hours test (maximum of700) for two consecutive calendar years)

Nova Scotia, Ontarioand Saskatchewan

■ 24 months of continuous service as a full-time employee


2 consecutive calendar years precedingmembership or

■ 700 hours of employment in each of2 consecutive calendar years precedingmembership

Québec ■ earnings of 35% of YMPE or■ 700 hours of employmentin calendar year preceding membership

■ earnings of 35% of YMPE or■ 700 hours of employmentin calendar year preceding membership

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III. Private Pension Plans (cont’d)

1. See the table at the end of this section for the effective date and the reform date for each jurisdiction.2. For membership termination on or after July 1, 2012.3. For Saskatchewan, the reform date in this case is January 1, 1994.

After a certain period of

time, members are

entitled to employer’s

contributions which

must be used to provide

for a pension at

retirement (i.e. cannot

be withdrawn in cash).

VESTING AND LOCKING-IN

JURISDICTIONSBENEFITS ACCRUEDBETWEEN EFFECTIVE DATEAND REFORM DATE1

BENEFITS ACCRUED AFTERREFORM DATE

Alberta, Manitoba, Ontario2

and Québec

■ immediate vesting andlocking-in

■ immediate vesting andlocking-in

British Columbia ■ vesting after 2 years ofparticipation for all benefits

■ locking-in after 2 years ofparticipation for benefitsafter effective date

■ 2 years of participation

Federal ■ immediate vesting■ 2 years of participation for

locking-in

■ immediate vesting■ 2 years of participation for

locking-in

Nova Scotia andNewfoundland and Labrador

■ 10 years of service orparticipation and

■ age 45


New Brunswick ■ lesser of:- 5 years of service, and- 2 years of participation

after 2000


Saskatchewan3 ■ one year of service orparticipation, and

■ age plus years of service orparticipation equal 45

■ 2 years of service

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MINIMUM EMPLOYER CONTRIBUTION – 50% RULE

JURISDICTIONSVESTED BENEFITS ACCRUEDBETWEEN EFFECTIVE DATE ANDREFORM DATE1

VESTED BENEFITS ACCRUEDAFTER REFORM DATE

Alberta,Manitoba, NovaScotia, Ontario2

andNewfoundlandand Labrador

N/A ■ employers must provide for atleast 50% of the value ofbenefits at termination,retirement or death

■ excess employee contributionsmay be refunded

British Columbia,New BrunswickandSaskatchewan

■ employers must provide for atleast 50% (or such otherpercentage as is provided underthe plan in New Brunswick) of thevalue of benefits at termination orretirement (or death in BritishColumbia)


■ employers must provide for atleast 50% of the value ofbenefits at termination,retirement or death


Federal ■ employers must provide for atleast 50% of the value of benefitsat termination, retirement ordeath

■ not applicable if plan providesindexation at prescribed rateduring deferral period

■ excess employee contributionsmay not be refunded and mustprovide for an additional pension

■ employers must provide for atleast 50% of the value ofbenefits at termination,retirement or death

■ not applicable if plan providesindexation at prescribed rateduring deferral period

■ excess employee contributionsmay not be refunded and mustprovide for an additionalpension

Québec N/A ■ employers must provide for atleast 50% of the value ofbenefits at termination,retirement or death

■ excess employee contributionsmay not be refunded and mustprovide for an additionalpension

1. See the table at the end of this section for the effective date and the reform date for each jurisdiction.2. For Ontario, the reform date in this case is January 1, 1987.

The employee

contributions must not

pay more than 50% of

the value of the benefits

or accrued pension

under the plan.

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PORTABILITY OF COMMUTED VALUE

JURISDICTIONS APPLICABLE CONDITIONS AND RESTRICTIONS

All Jurisdictions ■ portability of commuted value upon termination of employment mustbe offered up to eligibility for early retirement

■ commuted value may be transferred on a locked-in basis to aprescribed retirement savings arrangement

Alberta ■ portability of commuted value must be offered up to retirement fordefined contribution (DC) plan

■ from age 50, 50% of commuted value may be transferred on a non-locked-in basis, at member’s option and subject to certain conditions

British Columbiaand Québec

■ portability of commuted value must be offered up to retirement fordefined contribution plan

Manitoba ■ portability of commuted value must be offered up to retirement fordefined contribution plan

■ from age 55, 50% of commuted value may be transferred on a non-locked-in basis, if plan permits and subject to certain conditions

Ontario ■ portability of non locked-in commuted value to a RRSP or RRIF mustbe offered

■ no portability after normal retirement date

Saskatchewan ■ from age 55, 100% of commuted value may be transferred on a non-locked-in basis, if plan permits transfer from that age

Transferability of

commuted value upon

termination of

employment must be

offered up to eligibility

for early retirement in all

jurisdictions.


CASH AVAILABILITY UPON TERMINATION OF EMPLOYMENTAs an exception to the locking-in rule, the commuted value of benefits may be refunded to the

plan member if such value is under the prescribed threshold or to non-residents(may be subject to specific plan provision requirements)

SMALL BENEFIT NON-RESIDENT

JURISDICTIONS BENEFITS ACCRUED BETWEEN EFFECTIVEDATE AND REFORMDATE1

FOR ALL BENEFITS ACCRUED:REFUND OF 100% OF COMMUTEDVALUE

FOR ALL BENEFITS ACCRUED:REFUND OF 100% OFCOMMUTED VALUE UNDERPRESCRIBED CONDITIONS

Alberta ■ no specific rules ■ if commuted value does not exceed20% of YMPE

■ all plans must permit

British Columbia ■ no specific rules ■ if annual pension less than 10% ofYMPE or if commuted value doesnot exceed 20% of YMPE

■ if allowed under the planand if pension notcommenced

Federal ■ no specific rules ■ if commuted value less than 20%of YMPE, if allowed under the plan

■ if allowed under the plan

Manitoba ■ refund of up to 25% ofcommuted value of pension

■ if annual pension does not exceed4% of YMPE or if commuted valueis less than 20% of YMPE

■ if allowed under the plan andif pension not commenced

New Brunswick ■ no specific rules ■ if commuted value less than 40%of adjusted YMPE

■ allowed

Newfoundlandand Labrador

■ no specific rules ■ if annual pension less than 4% ofYMPE or if commuted value lessthan 10% of YMPE

N/A

Nova Scotia ■ refund of up to 25% ofcommuted value of pension

■ if annual pension is not more than4% of YMPE or if commuted valueless than 10% of YMPE

N/A

Ontario ■ Refund of up to 25% ofcommuted value of pension2

■ if annual pension is not more than4% of YMPE or if commuted valueless than 20% of YMPE

N/A

Québec ■ no specific rules ■ if commuted value less than 20%of YMPE

■ allowed

Saskatchewan3■ refund of up to 50% of

member contributions withinterest

■ if annual pension does not exceed4% of YMPE or if commuted valuedoes not exceed 20% of YMPE

■ if allowed under the plan

1. See the table at the end of this section for the effective date and the reform date for each jurisdiction.2. For Ontario, the reform date in this case is January 1, 1987.3. For Saskatchewan, the reform date in this case is January 1, 1994.

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PRE-RETIREMENT DEATH BENEFITS

JURISDICTIONS FOR SERVICE AFTER REFORM DATE1 SPOUSAL WAIVER

Alberta3, Manitoba5,Ontario2 and Québec

■ minimum value equal to 100% of commutedvalue of benefits

allowed

British Columbia4■ 60% of commuted value of benefits allowed

Federal ■ minimum value equal to 100% of commutedvalue of benefits

allowed

New Brunswick4■ minimum value equal to 100% of commuted

value of benefitsnot allowed

Newfoundland &Labrador

■ minimum value equal to 100% of commutedvalue of benefits

■ if member was eligible for early retirement,spouse receives a lifetime pension equal to60% of member’s early retirement pension

not allowed

Nova Scotia ■ 60% of commuted value of benefits■ refund of member contributions with

interest if there is no eligible spouse

not allowed

Saskatchewan6■ minimum value equal to 100% of commuted

value of benefits ■ if member was eligible for early retirement,

spouse receives a lifetime pension equal to60% of member’s early retirement pension

allowed

1. See the table at the end of this section for the effective date and the reform date for each jurisdiction.2. For Ontario, the reform date in this case is January 1, 1987.3. For Alberta, the reform date for pre-retirement death benefits is December 31, 1999.4. For British Columbia and New Brunswick, the reform date for the pre-retirement death benefits is the effective date.5. For Manitoba, pre-retirement death benefits include service before 1985.6. For Saskatchewan, pre-retirement death benefits include service before 1994.

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EARLY RETIREMENT

JURISDICTIONS EARLY RETIREMENT AGE EARLY RETIREMENT PENSION

Alberta and Federal within 10 years of pensionable age actuarial reduction allowed

British Columbia andNewfoundland andLabrador

from age 55 actuarial reduction allowed

Manitoba, NewBrunswick, Nova Scotia,Ontario andSaskatchewan

within 10 years of normal retirement age actuarial reduction allowed

Québec within 10 years of normal retirement age ■ actuarial reduction allowed ■ employees retiring within 10 years of

normal retirement age may receive atemporary pension from their plan untilage 65

POST RETIREMENT DEATH BENEFIT

All jurisdictions – for all years ofservice

■ upon member’s death, spouse receives a pension equal to 60% of member’spension

■ actuarial reduction allowed■ waiver by spouse allowed■ termination of spouse’s pension on remarriage prohibited

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PHASED RETIREMENT BENEFITS


Alberta ■ Phased retirement benefits in the form of a pension may be offered under defined benefit(DB) plans, subject to certain age criteria and to a maximum of 60% of accrued pension

■ No reduction of pension accrued prior to phased retirement period and member mustaccrue pension benefits during phased retirement period

■ Plans may allow employees on working-time reduction and who are within 10 years ofpensionable age to receive an annual lump sum benefit from their plan to make up for partof pay loss (pension is reduced to take into account amount paid)

British Columbia andFederal

■ Phased retirement benefits in the form of a pension may be offered under defined benefitplans subject to an individual agreement, certain age criteria and to a maximum of 60% ofaccrued pension

■ No reduction of pension accrued under defined benefit plans prior to phased retirement periodand member accrues pension benefits during phased retirement period

Manitoba andNew Brunswick

■ Phased retirement benefits in the form of a pension may be offered under defined benefitplans subject to an individual agreement, certain age criteria, reduced work hours and payand to a maximum of 60% of accrued pension

■ No reduction of pension accrued under defined benefit plans prior to phased retirement periodand member accrues pension benefits during phased retirement period

Nova Scotia, Ontario,and Newfoundlandand Labrador

Not offered

Québec ■ Phased retirement benefits in the form of a pension may be offered under defined benefitplans subject to an individual agreement, certain age criteria and to a maximum of 60% ofaccrued pension

■ No reduction of pension accrued under defined benefit plans prior to phased retirementperiod and member may accrue pension benefits during phased retirement period

■ Defined contribution plans may, subject to certain age criteria, offer phased retirementbenefits (other than a pension) funded from the member’s defined contribution account,to a maximum of 60% of the prescribed ceiling related to life income funds with pensionbenefit accrual allowed during phased retirement period

■ Employees on working-time reduction and who are within 10 years of or have reached orexceeded normal retirement age may receive an annual lump sum benefit from their planto make up for part of pay loss (pension is reduced to take into account amount paid)

Saskatchewan ■ Phased retirement benefits in the form of a pension may be offered under defined benefitplans, subject to certain age criteria and to a maximum of 60% of accrued pension

■ No reduction of pension accrued under defined benefit plans prior to phased retirementperiod and member must accrue pension benefits during phased retirement period

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POSTPONED RETIREMENTPostponed retirement applies to a member who remains employed by the same employer

after normal retirement age

JURISDICTIONS

BENEFIT ACCRUALDURINGPOSTPONEMENTPERIOD

PAYMENT OF PENSION DURINGPOSTPONEMENTPERIOD

LATESTRETIREMENTDATE

Alberta, BritishColumbia, Federal, NewBrunswick, Nova Scotiaand Ontario

■ member may continueaccrual up to pension plan’smaximum service orpension, if pension is notpaid

■ if allowed under the plan,pension may be paid whilemember continues inemployment, with nofurther benefit accrual

latest retirement date is theend of the calendar year inwhich the member attainsage 71

Manitoba ■ member may continueaccrual up to pension plan’smaximum service orpension, if pension is notpaid

■ postponed pension mustbe the greater of accruedpension and actuarialequivalent of pensionpayable at normalretirement age


Newfoundland andLabrador

■ plan may provide forpension accrual, adjustedpension corresponding tothe actuarial equivalent ofpension payable at normalretirement age, or otherarrangement if permitted


Québec ■ member may continueaccrual up to pension plan’smaximum service orpension, if pension is notpaid and plan allows it

■ postponed pension must beredetermined

■ partial or whole pensionpayment may compensatefor salary reduction

Saskatchewan ■ member entitled to pensionaccrual or to adjustedpension corresponding tothe actuarial equivalent ofpension payable at normalretirement age


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INTEGRATION OF CPP/QPP BENEFITS


Alberta, British Columbia,Manitoba, Nova Scotia,Ontario and Québec

■ limited to 1/35 per year of credited service

Federal ■ no limit

New Brunswick ■ limited to 1/35 per year of credited service from January 1, 1966


■ reduction according to the formula approved by the Superintendent

Saskatchewan ■ limited to 1/35 per year of credited service for employment from January 1, 1966

INTEGRATION OF OAS BENEFITS


Alberta, Nova Scotia andQuébec

■ limited to 1/35 per year of credited service before reform date1

British Columbia and NewBrunswick

■ limited to 1/35 per year of credited service before effective date1

Federal ■ no limit

Manitoba ■ limited to 3% for service before January 1, 1984


■ reduction according to the formula approved by the Superintendent for service beforeDecember 31, 1996, and no integration permitted for service after that date

Ontario ■ limited to 1/35 per year of credited service before January 1, 1987

Saskatchewan ■ no integration permitted, with exceptions

1. See the table at the end of this section for the effective date and the reform date for each jurisdiction.

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SEX DISTINCTIONS


Alberta, British Columbia,Federal, Manitoba, NewBrunswick, Nova Scotia,Ontario andSaskatchewan

■ prohibited for membership eligibility, member contributions and benefits accrued after:- 1986 in Federal and Ontario - 1987 in Nova Scotia- 1991 in New Brunswick

■ prohibited for membership eligibility, member contributions and benefits accrued for allyears of service in Alberta, British Columbia, Manitoba and Saskatchewan


no requirements

Québec ■ no requirements other than the prescribed use of sex-distinct mortality tables in benefitvalue determination

OTHER TOPICS

Division of pensionbenefits on marriagebreakdown

■ provision in all jurisdictions■ generally, division limited to 50% of pension benefits accrued during marriage or plan

membership■ transferability of pension benefits generally allowed■ for federally regulated pension plans, provincial rules generally apply

Garnishment ■ garnishment of pension benefits permitted in some jurisdictions under certain conditions

Minimum interest rate ■ minimum interest rate on member’s contributions in all jurisdictions

RECENT CHANGES

■ Alberta: effective September 1, 2014, new pension standards legislation with several significant changes (includingimmediate vesting, changes to transfers and unlocking, changes to pre-retirement death benefit, removal of partial planterminations, new annual statement)

■ Ontario: first biennial statements for inactive members are due July 1, 2017; enhanced disclosure requirements forbiennial/annual statements effective July 1, 2016; additional Statement of Investment Policies and Procedures (SIPP)content requirements and requirements to file SIPP and amendments to SIPP, starting February 29, 2016

■ Québec: An Act to foster the financial health and sustainability of municipal defined benefit pension plans (Bill 3) effectiveDecember 5, 2014, provides that municipal defined benefit pension plans must be restructured with a view to improvingtheir financial health and sustainability, and imposes specific constraints and processes in this regard

■ Saskatchewan: effective December 4, 2014, pension plans may provide for unlocking due to non-residency fordeferred vested members and other non-members (such as surviving spouse or former spouses) who are entitled to abenefit under the pension plan and who have not begun to receive their pension; spousal consent is required

ANTICIPATED CHANGES

■ Alberta, British Columbia, Nova Scotia and Saskatchewan: the provinces are still waiting for the Pooled RegisteredPension Plans Act to come into force; this Act will allow employers, employees and the self-employed to access a pooledregistered pension plan (PRPP), which is a voluntary retirement savings vehicle

■ British Columbia: changes to pension legislation similar to those recently brought into effect in Alberta are expected tobecome effective in 2015

■ Federal: certain provisions already adopted have not yet come into force; these provisions include: consent of qualifyingspouses for portability purposes in case of membership termination; rules of LIF type payments for DC plans,eCommunication rules and responsibility of plan administrators for investment options under a DC plan; other proposedchanges such as: annual statements for inactives and spouse/common-law partner, enhanced annual statementdisclosure and spousal consent for portability at retirement age

■ Ontario: certain provisions already adopted have not yet come into force; these provisions include: variable DC benefits,flexible benefits, target benefit plans, phased retirement; DB funding: contribution holidays and restrictions on benefitimprovements; notice of plan amendment; advisory committees, record retention; introduced Bill 56, which requires theestablishment of the Ontario Retirement Pension Plan (ORPP) and additional legislation governing the ORPP, to beeffective January 1, 2017. ORPP will be a mandatory pension plan for Ontario employees (with exceptions), withmandatory equal employer and employee contributions at 3.8% (combined), and will provide survivor benefits andlifetime indexed pension benefits

■ Some jurisdictions are expected to adopt the Agreement respecting Multi-Jurisdictional Pension Plans proposed byCAPSA in the near future

■ Proposed changes to Federal investment rules, which also affects several provincial jurisdictions: 10% rule and relatedparty rule

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JURISDICTIONS EFFECTIVE DATEREFORM DATE (UNLESS INDICATED OTHERWISE)

Alberta January 1, 1967 January 1, 1987

British Columbia January 1, 1993 ---

Federal October 1, 1967 January 1, 1987

Manitoba July 1, 1976 January 1, 1985

New Brunswick December 31, 1991 ---

Newfoundland and Labrador January 1, 1985 January 1, 1997

Nova Scotia January 1, 1977 January 1, 1988

Ontario January 1, 1965 January 1, 1988

Québec January 1, 1966 January 1, 1990

Saskatchewan January 1, 1969 January 1, 1993

1. INCOME BENEFITS

■ Maximum yearly insurable earnings: $49,500 in2015

■ Benefits in 2015

No benefits for employees who quit their job without just cause or are dismissed for misconduct

■ Family income supplement: up to 80% of theweekly insurable earnings for claimants withdependent children and a net family income below$25,921

■ Allowable earnings: under a pilot project in effectup to August 1, 2015, claimants of regular, parental,compassionate care or parents of critically illchildren benefits are entitled to keep 50 cents oftheir Employment Insurance (EI) benefits for everydollar they earn, up to 90% of the weekly insurableearnings used to determine their benefit; anyearnings above this threshold are deducted from EIbenefits, dollar for dollar; as a general rule, theseclaimants are entitled to earn up to 25% of theirweekly benefits without any decrease of theirbenefits (or $50 for those receiving less than $200of benefits per week); any earnings above thisthreshold are deducted from EI benefits, dollar fordollar

■ Premium in 2015

All jurisdictions except Québec:

Québec:

■ Eligibility:

– regular benefits: for employees working aminimum number of hours in the last 52 weeks,from 420 to 700 hours, depending on regionalunem ployment rate; for new entrants andreentrants to labour force, at least 910 hoursrequired; for reentrant parents, special rulesapply

– maternity and parental benefits: all jurisdictionsexcept Québec, 600 hours of insurableemployment; Québec, see Section 2

– sickness and compassionate care benefits: 600 hours of insurable employment

– parents of critically ill children benefits: 600 hours of insurable employment

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IV. EMPLOYMENT INSURANCE

Rate of benefits 55% of averageinsurable earnings inthe calculation period

Maximum weeklyinsurable earnings

$952

Maximum weeklybenefit

$524

Employee ■ 1.88% of insurable earnings

■ Maximum annual premium of$930.60

Employer ■ 2.632% of insurable earnings

■ Maximum annual premium of$1,302.84

Employee ■ 1.54% of insurable earnings

■ Maximum annual premium of$762.30

Employer ■ 2.156% of insurable earnings

■ Maximum annual premium of$1,067.22

■ Waiting period: benefits payable after 2 weeks

■ Benefit duration:

– maternity and parental benefits for Québecresidents: see Section 2

– regular benefits: payable for up to 45 weeks,depending on number of hours worked in last52 weeks and region al unemployment rate

– maternity and sickness benefits: payable for up to15 weeks

– parental benefits to take care of a newborn or toadopt a child: payable for up to 35 weeks; may beshared between parents if both eligible

– compassionate care benefits: payable for up to6 weeks; may be shared between claimants

– parents of critically ill children benefits: payablefor up to 35 weeks; may be shared betweenparents

– maternity, sickness, paren tal, compassionate careand parents of critically ill children benefitssubject to a com bined maximum of 50 weeks(could be extended to allow for the combinationof different special benefits up to 104 weeks); if incombi nation with regular benefits, total benefitperiod may not exceed 50 weeks

■ Clawback:

– if net income for taxation year exceeds 1¼ timesmaximum yearly insurable earnings ($61,875 in2015), 30% of the lesser of total benefits paid toclaimant and the amount by which net incomeexceeds $61,875 must be reimbursed

– no clawback for sickness, maternity, parental,compassionate care and parents of critically illchildren benefits, or for claimant who receivedless than 1 week of regular benefits in thepreceding 10 years

■ Premium reduction:

– employers with a qualifying short-term disabilityplan are eligible for premium reduction; qualifyingplans must provide benefits at least as generous asEmployment Insurance sickness benefits

– amount of reduction: for each calendar year, therates of premium reduction are established basedon 4 categories of qualifying plans; for 2015, thereduction ranges from 19¢ to 36¢ per $100 ofweekly insurable earnings; 5/12 of reductionmust be shared with employees in cash orequivalent benefits

■ Self-employed:

– can voluntarily join the EI program and be eligibleto receive maternity, parental, sickness,compassionate care and parents of critically illchildren benefits

– the annual earnings required to qualify for specialbenefits is $6,645 in 2015

– pay same premium rate as employees

2. QUÉBEC PARENTAL INSURANCE PLAN

Benefits paid to all eligible workers—salaried or self-employed—who take maternity leave, paternityleave, parental leave or adoption leave; same-sexspouses may be entitled to benefits under certainconditions

■ Maximum annual insurable earnings:$70,000 in 2015

IV. Employment Insurance (cont’d)

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■ Benefits

■ Family income supplement: up to 80% of theweekly insurable earnings for benefit claimants and anet family income below $25,921

■ Allowable earnings: as a general rule, claimantsentitled to earn up to 25% of their weeklypaternity, parental or adoption benefits withoutany decrease of their benefits ($50 for thosereceiving less than $200 of benefits per week); thisrule does not apply to maternity benefits

■ Premium in 2015

■ Eligibility: parent residing in Québec at thebeginning of the benefit period, earning at least$2,000 of insurable income in the last 52 weekspreceding commencement of benefit paymentsregardless of the number of hours worked, whoseregular weekly income is reduced by at least 40%and being required to pay the premium under theplan (certain exceptions may apply)

■ Waiting period: none

■ Benefit duration: parents have a choice betweentwo benefit payment periods: the basic plan andthe special plan; weekly benefits are equal to apercentage (see table below) of the averageweekly earnings from last 26 weeks

■ The average weekly earnings cannot exceed$1,346.15 in 2015

■ The maximum weekly benefit is $1009.61 in 2015

IV. Employment Insurance (cont’d)

TYPE OFBENEFITS

BASIC PLAN* SPECIAL PLAN*

Maternitybenefits 18 weeks at 70% 15 weeks at 75%

Paternity benefits5 weeks at 70% 3 weeks at 75%

Parental benefits7 weeks at 70% +25 weeks at 55%

25 weeks at 75%

Adoptionbenefits

12 weeks at70%+ 25 weeksat 55%

28 weeks at 75%

Employee ■ 0.559% of insurable earnings■ maximum annual premium of

$391.30

Employer ■ 0.782% of insurable earnings■ maximum annual premium of

$547.40

Self-employedworker

■ 0.993% of insurable earnings■ maximum annual premium of

$695.10

Maternitybenefits

Offered to birth mothers only andmay not be shared between bothparents

Paternitybenefits

Offered to fathers only and may notbe shared between both parents

Parentalbenefits

Full number of weeks of parentalbenefits may be taken by eitherparent or shared between them, andbenefits may be paid concurrently

Adoptionbenefits

Full number of weeks of benefitsmay be taken by either parent orshared between them, and benefitsmay be paid concurrently

* Option selected by the first parent filing a claim applies to theother parent.

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RECENT CHANGE

■ Saskatchewan: prohibition of discrimination based on gender identity, effective December 8, 2014

ANTICIPATED CHANGE

■ Federal: amendments to the Canadian Human Rights Act have been tabled to include gender identity andgender expression as prohibited grounds of discrimination

1. DISCRIMINATION IN EMPLOYMENT

■ Grounds for discrimination in employment may varybetween jurisdictions, but the main prohibitions arevis-à-vis: age (defined differently in variousjurisdictions); sex, sexual orientation; pregnancy; race;national or ethnic origin; religion or creed; maritalstatus; family status; and physical or mental disability

■ Many, but not all, jurisdictions also include, asprohibited grounds, political belief or opinion; sourceof income or social condition and criminal conviction

■ Emerging prohibited ground: gender identity(Ontario, Manitoba, Newfoundland and Labrador,Nova Scotia, Prince Edward Island and Saskatchewan)and gender expression (Ontario, Newfoundland andLabrador, Nova Scotia and Prince Edward Island)

■ Mandatory retirement prohibited in all jurisdictionsexcept where there is a bona fide occupationalrequirement and accommodating the employee wouldimpose undue hardship on the employer

■ All jurisdictions (except Manitoba): statutoryexceptions with respect to insurance and pensionplans allowing discrimination on specific grounds

2. AFFIRMATIVE ACTION AND EMPLOYMENT EQUITY

■ Adoption of affirmative action programs allowed inall jurisdictions

■ Federal: public and private sector employers with100 employees or more required to implementemployment equity measures

■ While not legislated, the Federal ContractorsProgram requires that employers with100 employees or more bidding on federalcontracts of $1,000,000 or more must certify theywill implement employment equity measures

■ Québec: public sector employers with100 employees or more are required to establish anemployment equity program

■ While not legislated, the Québec ContractCompliance Program requires that employers with100 employees or more soliciting contracts orsubsidies of more than $100,000 must certify theywill implement affirmative action programs

3. PAY EQUITY AND EQUAL PAY

■ All jurisdictions have legislation requiring equal payfor equal or similar work for women and men (withrestrictions in some jurisdictions)

■ Some jurisdictions have additional pay equitylegislation which has as its purpose, the correctionof systemic discrimination in compensation for workperformed by employees in predominantly femalejob classes

■ Pay equity legislation applies only to the publicsector in Manitoba, New Brunswick, Nova Scotia,and Prince Edward Island

■ Government policy requires pay equity in the publicservice in Newfoundland and Labrador

■ Pay equity legislation applies to both the public andprivate sector in Ontario and Québec

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V. HUMAN RIGHTS AND EQUITY ISSUES

1. HOSPITAL BENEFITS

■ Hospital plans vary by jurisdiction, but they allcover, during the active treatment period, room andboard to ward level, oper ating room andanaesthetic facilities, medically necessary in-patientnursing care, drugs (subject to certain exceptions),laboratory and diagnostic services, and certain out-patient services

■ Entry fees and/or daily ward charges for chronic-care and nursing homes exist in most jurisdictions

■ All jurisdictions cover expenses incurred out of theprovince or territory to varying degrees

2. MEDICAL CARE, DRUGS, DENTAL CARE AND EYEEXAMINATIONS

Medical care

■ Medicare plans essentially cover all medicallyrequired services per Canada Health Act rendered

by medical practitioners at home, office or hospital;depending on jurisdiction, limited coverageavailable for paramedic services and prosthetic ordurable appliances

■ Charges incurred by a person temporarily outsideprovince or territory of residence reimbursed tovarying degrees

Drug expenses(out of hospital, excluding special programs for low-income persons)

■ All jurisdictions have a drug formulary

■ Alberta: 70% reimbursement for residents age 65and over; subject to a few exceptions, out- of-pocketmaximum of $25 per prescription

■ British Columbia: family deductible and annual out-of-pocket maximum based on date of birth and netannual family income as per chart below

VI. PUBLIC HOSPITAL AND MEDICAL CARE

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FAIR PHARMACAREREIMBURSEMENT ANNUAL

NET ANNUAL FAMILY (AFTER DEDUCTIBLE OUT-OF-POCKETFAMILY INCOME* DEDUCTIBLE IS REACHED)** MAXIMUM

For BC residents born in 1940 or later:Less than $15,000 None 70% of eligible 2% of net annual

prescription drug costs family income

$15,000 to $30,000 2% of net annual 70% of eligible 3% of net annualfamily income prescription drug costs family income

Over $30,000 3% of net annual 70% of eligible 4% of net annualfamily income prescription drug costs family income

For BC residents born in 1939 or earlier:Less than $33,000 None 75% of eligible 1.25% of net annual

prescription drug costs family income

$33,000 to $50,000 1% of net annual 75% of eligible 2% of net annualfamily income prescription drug costs family income

Over $50,000 2% of net annual 75% of eligible 3% of net annualfamily income prescription drug costs family income

* Based on line 236 of the income tax return.** Only drugs on the PharmaCare formulary count towards the deductible and out-of-pocket maximum.

■ Manitoba: residents without private drug insurancecoverage, 100% reimbursement after annual familydeductible based on adjusted annual family income(i.e., family income reduced by $3,000 for spouseand each dependent child under age 18); tocalculate the deductible, the adjusted annual familyincome is multiplied by the PharmaCare deductiblerate; residents identified by CancerCare Manitobaas receiving prescribed outpatient oral cancer andsupportive drugs, 100% reimbursement with nodeductible

■ Newfoundland and Labrador: the Newfoundlandand Labrador Prescription Drug Program contains acomprehensive income-based prescription drugprogram (the Assurance Plan) for residents;program covers costs for eligible drugs when out-of-pocket costs exceed specified percentages of netfamily annual incomes; coverage available for thosewith net family annual incomes up to $149,999;private plans remain first payer

■ Nova Scotia: Seniors’ Pharmacare provides optionalcoverage for residents age 65 and over; copaymentfor each prescrip tion of 30% of the prescriptioncost; annual out-of-pocket maxi mum of $382;Pharmacare does not reimburse expenses whereseniors are covered by a private plan that providesfirst-dollar drug coverage in another Canadianjurisdiction; seniors with such private coverage areeligible for reimbursement under Pharmacare whenprivate plan costs exceed $806 in a year; FamilyPharmacare provides optional coverage for NovaScotia residents not covered by another public

program; participants are required to pay a 20%copayment per prescription as well as a deductible;the annual maximum deductible and copayment arebased on family size and annual income

■ Ontario: under the Drug Benefit Program, residentsage 65 and over, with an income over the threshold($16,018 for singles, $24,175 for couples) musteach pay an annual deductible of $100 before theyare eligible for coverage (plus up to $6.11 perprescription); residents age 65 and over with anincome below the threshold only have to pay $2 perprescription; for residents under age 65 whose drugcosts are not completely covered by privateinsurance, the Trillium Drug Program pays most ofthe cost of the drugs after a large deductible varyingwith family income and size (plus $2 perprescription)

■ Prince Edward Island: residents age 65 and overpay the dispensing fee (varies from one pharmacyto another) plus $8.25 toward ingredient costs; theCatastrophic Drug Program provides assistance toresidents of PEI whose eligible prescription drugcosts are affecting their household’s ability tomaintain life essentials. Through this new programresidents of PEI will have their annual out-of-pocketdrug costs for eligible prescription medicationscapped at an amount not exceeding a setpercentage of their household income, referred toas “household cap”

■ Québec: residents between ages 18 and 64 noteligible for a group insurance plan and residentsage 65 and over who do not receive GIS, 67.5%reimbursement after monthly deductible of $16.65per adult and 100% reimbursement after monthlyout-of-pocket maximum of $83.83 per adult or$1,006 annually

■ Saskatchewan: families whose prescription drugcosts exceed 3.4% of adjusted annual family income(income adjusted by deducting $3,500 for eachchild under age 18) may be eligible for assistanceunder the special support program; Children’s DrugPlan provides coverage for children age 14 andunder; maximum patient cost of $20 perprescription for drugs listed on the Saskatchewanformulary and those approved under exceptiondrug status; Seniors’ Drug Plan provides coveragefor residents age 65 and over, subject to income

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VI. Public Hospital and Medical Care (cont’d)

ADJUSTEDANNUAL FAMILYINCOME

2014-2015PHARMACAREDEDUCTIBLE RATE

$15,000 or less 2.91%

$15,001 to $21,000 4.14%

$21,001 to $29,000 4.18% - 4.55%

$29,001 to $40,000 4.58%

$40,001 to $47,500 4.98% - 5.20%

$47,501 to $75,000 5.27%

$75,001 and up 6.60%

test; maximum patient cost of $20 per prescriptionfor drugs listed on the Saskatchewan formulary andthose approved under exception drug status

■ Yukon: residents who are at least age 65, or age 60and married to a living Yukon resident who is atleast age 65, 100% of lowest priced genericprescription drugs listed in the Yukon PharmaCareFormulary (including dispensing fee) plus certainnon-prescription drugs and goods; claims must firstbe submitted through private plans

Dental care(excluding programs for low-income persons)

■ Specific dental and oral surgery in hospital coveredin all jurisdictions

■ Limited coverage for children in Newfoundland andLabrador, Nova Scotia, Prince Edward Island andQuébec

■ Limited coverage for children and seniors in Yukon

Eye examinations(excluding certain special programs for low-incomepersons and medically required services)

3. OUT-OF-COUNTRY COVERAGE

■ Emergency out-of-country coverage limited to amaximum per diem rate in all jurisdictions

■ With prior approval, services not available in theprovince or territory of residence may be covered

■ See Section XI for more details

4. CONTRIBUTIONS

Costs supported in some provinces by employer orresident contributions:

■ British Columbia: $72.00 single, $130.50 familyof 2, $144.00 family of 3 and over, per month

■ Manitoba (for both health care and post-secondaryeducation):

■ Newfoundland and Labrador: employer with payrollin excess of $1,200,000 contributes 2% tax onpayroll in excess of $1,200,000 (for both health careand post-secondary education)

■ Nova Scotia: residents age 65 and over pay annualpremium of up to $424 for Seniors’ PharmacareProgram drug coverage; no premium or fees underthe Family Pharmacare Program

■ Ontario:

– Employer Health Tax (EHT): 1.95% (reduced ratesapplicable if Ontario payroll is less than $400,000).Eligible employers with Ontario payroll not morethan $5 million (including Ontario payroll ofassociated employers) are exempt from EHT on thefirst $450,000 of Ontario payroll; the $450,000exemption amount must however be allocatedamong associated employers, if any. Registeredcharities are eligible for the $450,000 exemptionamount regardless of their payroll

– individual residents earning more than $20,000in taxable income pay an Ontario HealthPremium to a maximum of $900

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JURISDICTIONS ELIGIBILITY

Alberta, BritishColumbia andManitoba

Residents under age 19, andage 65 and over (Alberta: 1 examper year; British Columbia andManitoba: 1 exam every 2 years)

Nova Scotia Residents under age 9, and age65 and over (1 exam/24 months)

Ontario Residents under age 20, andage 65 and over(1 exam/12 months)

Québec Residents under age 18, andage 65 and over (1 exam/year)

Saskatchewan Residents under age 18 andresidents with diabetes (1 examper year)

Yukon Residents at least age 65 or 60and married to a living Yukonresident who is at least age 65(1 exam every 2 years)

IF PAYROLL IS ... EMPLOYER CONTRIBUTES ...

More than $2,500,000 2.15% of payroll

Between $1,250,000and $2,500,000

4.30% on amount inexcess of $1,250,000

$1,250,000 or less 0%


RECENT CHANGES

■ British Columbia: contributions increased, effective January 1, 2015

■ Manitoba: PharmaCare deductible table modified, effective April 1, 2014

■ New Brunswick: the Prescription and Catastrophic Drug Insurance Act, a comprehensive prescription drug programfunded through a combination of member-paid premiums and government subsidies, is effective in two phases: avoluntary program began on May 1, 2014 and a program for uninsured New Brunswickers will be effective April 1, 2015(however, a proposed legislation removes the mandatory requirement to uninsured New Brunswickers to join the plan,but at the time of the update of this publication, the proposed legislation has not been adopted yet)

■ Saskatchewan: effective October 1, 2014, residents with diabetes are now covered for annual eye examinations

■ Prince Edward Island: the Drug Cost Assistance Act became effective July 1, 2014. This legislation has the potential toimpact all of the province’s public drug programs. The legislation restricts the ability of private plans to coordinate withthe public plan

■ Québec:

– employer: 4.26% payroll tax; reduced ratesapplicable if total payroll of the employer and anyassociated employer worldwide is less than$5,000,000

– individual residents: 1% of most non-salarytaxable income in excess of $14,285 (excludingthe portion between $29,285 and $49,660) to amaximum of $1,000

– residents covered under the Drug Insurance Plan:annual premium of up to $611 per adult

– residents aged 18 by the end of the year, earningincome higher than $18,370 and who are notexempt, pay a progressive health contribution upto a maximum of $1,000


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VII. FAMILY LEAVES

Additional rules, which are not addressed in this publication, may apply to other leaves of absence (such as sick leave,organ donor leave and reservist leave)

MATERNITY LEAVEAll jurisdictions have provisions regarding maternity leave.All jurisdictions: employee to be reinstated to the same position or a comparable one after maternity leave.

JURISDICTION ELIGIBILITY DURATION BENEFIT CONTINUATION

Alberta ■ 52 consecutive weeks ofemployment

■ 15 weeks ■ Not specified

British Columbia ■ No requirements ■ 17 weeksIf medically required,extension allowed up to6 weeks

■ Requires participation inemployer-sponsoredbenefits to continue duringleave, subject tocontinuation of employeecontributions, whereapplicable

Federal ■ 6 consecutive months ofcontinuous employment

■ 17 weeks1

If child is hospitalized,extension allowed forperiod of hospitalization upto 52 weeks for total periodof leave

■ Requires participation inemployer-sponsoredbenefits to continue duringleave, subject tocontinuation of employeecontribution, whereapplicable

Manitoba ■ 7 consecutive months ofemployment


New Brunswick ■ No requirements ■ 17 weeks ■ Not specified


■ 20 consecutive weeks ofemployment

■ 17 weeks ■ Not required

Nova Scotia ■ 1 year of employment ■ 17 weeks ■ Requires participation inemployer-sponsoredbenefits to continue duringleave, subject tocontinuation of employeecontributions, whereapplicable

■ Employee may be requiredto pay employercontributions

1 Leave to a pregnant or breast-feeding woman may be granted when preventive reassignment is impossible and working conditions could bedangerous to the mother’s or baby’s health, or if the employee provides a medical certificate indicating that she is unable to work because ofpregnancy or breast feeding.

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VII. Maternity Leave (cont’d)


Ontario ■ Due date must be 13 weeksor more from dateemployment commences

■ 17 weeks ■ Requires participation inemployer-sponsoredbenefits to continue duringleave, subject tocontinuation of employeecontributions, whereapplicable

Prince Edward Island ■ Continuous period of20 weeks of employment inthe 52 weeks immediatelypreceding commencementdate of leave

■ 17 weeksIf medically required,extension allowed up to5 weeks



■ Continuing participationdoes not include pensionplans

Québec ■ No requirements■ 18 weeks

1

If medically required,extension allowed


Saskatchewan ■ 13 consecutive weeks ofemployment

■ 18 weeks for maternity oradoption leaveIf medically required,extension allowed up to6 weeks



Yukon ■ 12 months of continuousemployment


1 In Québec, a leave may be granted to a pregnant or breast-feeding woman when preventive reassignment is impossible and working conditionscould be dangerous to the mother’s or baby’s health.

VII. Paternity

PATERNITY LEAVE

Only Québec has provisions regarding paternity leave.Employee to be reinstated to the same position or a comparable one after paternity leave.

JURISDICTION ELIGIBILITY DURATIONBENEFITCONTINUATION

Québec ■ No requirements ■ 5 weeks; if thenewborn suffersfrom a healthcondition,extension allowed

■ Requiresparticipation inemployer-sponsored benefitsto continue duringpaternity leave,subject tocontinuation ofemployeecontributions,where applicable

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VII. Parental Leave

PARENTAL LEAVEAll jurisdictions have provisions regarding parental leave for birth and adoptive parents. An employee is to be reinstated tothe same position or a comparable one after a parental leave.



■ 37 weeks1■ Not specified

British Columbia ■ No requirements ■ 35 weeks for birth motherand 37 weeks for birthfather and adoptive parents

■ If the newborn or adoptivechild suffers from healthcondition, extensionallowed up to 5 weeks


Federal ■ 6 consecutive months ofcontinuous employment

■ Up to 37 weeks, maximum52 weeks for maternity andparental combined1, 2

■ If medically required,extension allowed up to104 weeks


Manitoba ■ 7 consecutive months ofemployment


New Brunswick ■ No requirements ■ Up to 37 weeks, maximum52 weeks for maternity andparental/adoptioncombined1, 3

■ Not specified


■ 20 consecutive weeks ofemployment

■ 35 weeks and an additional17 weeks for adoptiveparents

■ Not required

Nova Scotia ■ 1 year of employment ■ 35 weeks where pregnancyleave is taken, 52 weeksotherwise



1 When both parents take a leave, the combined total duration of those leaves may not exceed the maximum duration permitted.2 In the federal jurisdiction, the adopted-child age limit is based on the criteria of the province or territory where the parents reside.3 The adopted-child age limit for New Brunswick is under age 19.

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VII. Parental Leave (cont’d)


Ontario ■ 13 weeks of employment ■ 35 weeks if employee hastaken a maternity leave and37 weeks otherwise


Prince Edward Island ■ Continuous period of20 weeks of employment inthe 52 weeks immediatelypreceding commencementdate of leave

■ 35 weeks for birth parents,52 weeks for adoptiveparents1

■ If the newborn or adoptivechild suffers from heathcondition, extensionallowed up to 5 weeks




Québec ■ No requirements ■ 52 weeks2

■ If the newborn or adoptivechild suffers from healthcondition, extensionallowed



■ 34 weeks if the employeehas taken a maternity oradoption leave, 37 weeksotherwise



Yukon ■ 12 months of continuousemployment

■ 37 weeks1, 3

■ If the newborn or adoptivechild suffers from healthcondition, extension allowedand must be completed byfirst anniversary of date ofbirth or adoption

■ Not specified

1 When both parents take a leave, the combined total duration of those leaves may not exceed the maximum duration permitted.2 In Québec, there is a 5-day leave including 2-day paid leave upon the birth or adoption of child for an employee with 60 days of service with

employer.3 In the Yukon, both parents cannot normally take leave concurrently.

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VII. Compassionate Care Leave

COMPASSIONATE CARE LEAVE

All jurisdictions have provisions regarding compassionate care leave.In all concerned jurisdictions, an employee is to be reinstated to the same position or a comparable one after the leave (inthe Yukon, such is not specifically foreseen by the applicable legislation but the position of the authorities is to grant such aprotection).



■ Medical certificate requiredconfirming the familymember’s high risk of deathwithin the next 26 weeks


British Columbia ■ Medical certificate requiredconfirming the familymember’s high risk of deathwithin the next 26 weeks

■ 8 weeksExtension possible up to8 weeks


Federal ■ Medical certificate requiredconfirming the familymember’s high risk of deathwithin the next 26 weeks

■ 8 weeks1■ Requires participation in

employer-sponsoredbenefits to continue duringleave, subject tocontinuation of employeecontributions, whereapplicable

Manitoba ■ 30 days of employment



New Brunswick ■ Medical certificate requiredconfirming the familymember’s high risk of deathwithin the next 26 weeks



■ 30 days of employment


■ 8 weeks1■ Not required

1 When two or more individuals take a leave in respect of the same family member, the combined total duration may not exceed the maximumduration permitted.

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VII. Compassionate Care Leave (cont’d)


Nova Scotia ■ 3 months of employment





Ontario ■ Medical certificate requiredconfirming the familymember’s high risk of deathwithin the next 26 weeks

■ 8 weeks1 for family medicalleave, extension possibleup to 8 weeks

■ 8 weeks for family caregiverleave


Prince Edward Island ■ Medical certificate requiredconfirming the familymember’s high risk of deathwithin the next 26 weeks





Québec ■ 3 months of uninterruptedservice

■ 12 weeksIf child under age 19 withpotentially mortal illness,extension allowed up to104 weeks for parents



RECENT CHANGES

■ New Brunswick, Ontario and Saskatchewan: eligible employees may now take a leave of absence without pay whena child is critically ill, or when a child dies or disappears as the probable result of a crime

■ Ontario: effective October 29, 2014, family caregiver leave, which is distinguishable from family medical leave, cameinto force

■ Saskatchewan: effective April 29, 2014, two new types of job-protected employment leave for employees wereintroduced: organ donation leave and citizenship ceremony leave

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VII. Compassionate Care Leave (cont’d)



■ Medical certificate requiredconfirming the familymember’s high risk ofdeath within the next26 weeks

■ 8 weeksExtension possible up to8 weeks



Yukon ■ Medical certificate requiredconfirming the familymember’s high risk ofdeath within the next26 weeks



■ No-fault guarantee of compensation for work-related injury or disease (exceptions may apply);legislation specifics vary by jurisdiction

■ Funded 100% by employers; rating methods vary byjurisdiction

■ Provides wage loss, health care, vocationalrehabilitation, permanent disability awards andfatality survivor benefits

■ Disability wage loss benefits

■ Permanent disability pension or lump-sum awards:based on the degree of physical or mentalimpairment and ensuing wage loss; Alberta: basedon physical assessment of capaci ty to work andpotential wage loss; all jurisdictions have dual awardsystems providing both wage loss and non-monetary loss awards

■ Adjustment: all jurisdictions adjust some or allbenefits periodically, some on the basis of CPI-related indexation, others with legislated periodicimprovements

VIII. WORKERS’ COMPENSATION

JURISDICTIONS BENEFITS

Alberta, BritishColumbia,Manitoba, Québecand Saskatchewan

90% of net eligible earnings

New Brunswick,Ontario and PrinceEdward Island




Nova Scotia 75% of net eligible earnings forfirst 26 weeks, then 85%

Yukon 75% of gross eligible earnings

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VIII. Workers’ Compensation (cont’d)

AVERAGE RATES MAXIMUM INSURABLE EARNINGS

2014 2015 2014 2015

Alberta $1.03 $0.97 $92,300.00 $95,300.00

British Columbia $1.70 $1.70 $77,900.00 $78,600.00

Manitoba $1.50 $1.30 $119,000.00 $121,000.00

New Brunswick $1.21 $1.11 $60,100.00 $60,900.00

Newfoundland and Labrador $2.45 $2.45 $60,760.00 $61,615.00

Nova Scotia $2.65 $2.65 $56,000.00 $56,800.00

Ontario $2.48 ---* $84,100.00 $85,200.00

Prince Edward Island $1.90 $1.79 $51,100.00 $52,100.00

Québec $2.02 $1.94 $69,000.00 $70,000.00

Saskatchewan $1.51 $1.46 $59,000.00 $65,130.00

Yukon $2.18 $1.90 $83,501.00 $84,837.00

* The average rate for 2015 is not known at the date of publication.

1. INCOME TAX

■ Old Age Security: payments not subject toclawback are taxable

■ Canada/Québec Pension Plan (C/QPP):payments taxable; employer contri butionsdeductible; employee contributions eligible for a15% federal tax credit (at provincial level, thepercentage used to calculate the tax credit varies witheach province; however, for Québec tax purposes,the C/QPP contribution is taken into account in thebasic personal tax credit)

■ Workers’ compensation: payments essentiallynon-taxable; em ployer contributions deductible

■ Employment insurance (EI): payments taxable;employer contributions deductible; employeecontributions eligible for a 15% federal tax credit(at provincial level, the percentage used to calculatethe tax credit varies with each province; however,for Québec tax purposes, the EI premium is takeninto account in the basic personal tax credit)

■ Québec parental insurance plan (QPIP):payments taxable; employer contributionsdeductible; employee contributions eligible for a15% federal tax credit (for Québec tax purposes, theQPIP premium is taken into account in the basicpersonal tax credit)

■ Health and dental expenses:

– government plans: individual’s contributions notdeductible but taxable to employee if paid byemployer (for Québec tax purposes, theindividual’s contribution to the Québec HealthServices Fund is taken into account in the basicpersonal tax credit); employ ers may deductcontributions; benefits not taxable; provincialprescription drug insurance premium qualifiesfor the medical expense tax credit

– private plans: employers may deduct theircontributions; employee contributions qualify forthe medical expense tax credit; employercontributions and benefits not taxable toemployees (for Québec income tax purposes,employer contributions are taxable to employeesand qualify for the medical expense tax credit)

– lump-sum amount in settlement of future healthand dental benefits is taxable

■ Group sickness or accident insurance plans:

– benefits in respect of the loss of all or any part ofthe taxpayer’s income from employment paid ona periodic basis from a plan to which employercontributed are taxable; employee contributionsare deductible from taxable benefits

– benefits paid under employee-pay-all plan are nottaxable

– employer contributions are taxable except to theextent that the contributions are attributable tobenefits that are payable on a periodic basis andare in respect of a loss of employment income

– lump-sum amount in settlement of futurebenefits under a group long-term disabilityinsurance policy is not taxable to the employee

■ Group life insurance policies: net employercontributions for group life insurance anddependent life insurance are taxable for employee;employee contributions in respect of taxablecoverage reduce taxable benefit

■ Registered pension plans (RPP):

– combined employer-employee contributions tomoney pur chase RPP may not exceed the lesserof 18% of compensation and $25,370, subject tocompre hensive limit if employee also participatesin defined benefit RPP or DPSP; allowablecontributions fully deductible

38

IX. TAX PROVISIONS

– maximum pension benefit under defined benefitRPP: $2,818.89 per year of service

– employee current service contributions todefined benefit RPP may not exceed the lesser of9% of member’s compensation and aggregate of$1,000 and 70% of member’s pensionadjustment related to the defined benefitprovision; employee allowable RPP contributionsfully deductible (except for limits appli cable topast service before 1990); employer current andpast service contributions to defined benefit RPP,tax deductible with out limit, but must beapproved by tax authorities

■ Deferred profit-sharing plans (DPSP):

– employer contributions may not exceed thelesser of 18% of compensation and $12,685,subject to a comprehensive limit if em ployee alsopartici pates in a RPP; allowable contributionsfully deductible; employee contributions are prohibited

– contributions vest, at the latest, after 2 years ofplan membership

– employer contributions to DPSP on behalf ofbeneficiary who is significant shareholder (orrelated person) disallowed

– registration of a new DPSP is denied if significantshareholder (or related person) is beneficiary

■ Registered retirement savings plans (RRSP):

– RRSP deduction limits for 2015:a) individuals not participating in a RPP or

DPSP in 2014: lesser of 18% of earnedincome in 2014 and $24,930

b) members of money purchase RPP and DPSPin 2014: lesser of 18% of earned income in2014 and $24,930, reduced by pensionadjust ment (i.e., employer and employeecontributions to RPP and employercontributions to DPSP for 2014)

c) members of defined benefit RPP in 2014:lesser of 18% of earned income in 2014 and$24,930, reduced by pension adjustment(i.e., deemed value of benefits accrued in2014 under RPP)

plus any unused RRSP deduction room at theend of 2014

– the RRSP deduction limit for 2015 is increased bythe Pension Adjustment Reversal (PAR)calculated for 2015

– the RRSP deduction limit is reduced by net PastService Pension Adjustments (PSPA)

– unused RRSP deduction room since 1991 may becarried forward indefinitely

– funds accumulated under RRSP may bewithdrawn totally or partially at any time prior toend of year in which individual attains age 71; inaddition, over same period, these funds may beused to purchase life annuity or fixed-termannuity to age 90 or transferred to a RegisteredRetirement Income Fund (RRIF)

– tax-free transfer of retiring allowance to RRSPlimited to $2,000 per year of service prior to1996, plus $1,500 for each year of service prior to1989 for which employer contributions to either aRPP or a DPSP have not vested in the employee

■ Registered Retirement Income Funds (RRIF):

– Property under a RRIF is derived only as a resultof a transfer of funds from another RRIF, a RRSP ora RPP

– Starting in the year after the year a RRIF isestablished, a minimum amount has to be paidyearly from the RRIF

■ Tax Free Savings Account (TFSA):

– Canadian residents age 18 or older cancontribute up to $5,500 to a TFSA in 2015, plusany unused TFSA contribution room at the end of2014. The contributions are not deductible forincome tax purposes

– TFSA holders can make withdrawals at any time,and the total amount of the withdrawals in acalendar year will be added to the contributionroom for the following year

– Unused contribution room can be carried forwardindefinitely

39

IX. Tax Provisions (cont’d)

RECENT CHANGES

■ Contribution limits for a money purchase RPP and DPSP increased to $25,370 and $12,685, respectively; maximumpension benefit per year of service under a defined benefit RPP increased to $2,818.89, and RRSP dollar limit increasedto $24,930

■ As of 2014, the minimum age of eligibility for splitting all sources of eligible retirement income between spouses is set at65 for Québec income tax purposes

■ Based on Québec Minister of Finance’s measures announced on December 2, 2014, effective on December 3, 2014, theQuébec compensation tax was increased from 0.3% to 0.48% and the tax on insurance premiums was increased from2% to 3%. The compensation tax should decrease from 0.48% to 0.3% on April 1, 2017 and should be eliminated as ofApril 1, 2019

■ Private pension benefits: federal tax credit of 15%(max. $300) of the first $2,000 of eligible pensionincome (at provincial level, the amount eligible andthe percentage used to calculate the tax credit varywith each province) may be claimed for total of:

– periodic payments from RPP; and

– annuity payments out of DPSP, RRSP or RRIF andtaxable portion of other annuities, if age 65 orover, or regardless of age if received owing tospouse’s death

2. LIFE AND HEALTH INSURANCE PREMIUM TAXES

■ 2% of net premiums in Yukon and all provinces except:

(also applicable to most self-insured plans inNewfoundland and Labrador, Ontario and Québec)

1 As announced by the Québec Minister of Finance onDecember 2, 2014.

This premium tax consists of a 3% tax on insurance premiums,plus a 0.48% compensation tax applicable to financial

institutions, including insurance corporations

■ Group insurance plans, including most self-insuredplans, are subject to 8% sales tax on net cost inOntario and 9% in Québec

However, administrative charges for self-insuredplans are subject to the 5% good and services tax(GST) (in Alberta, British Columbia, Manitoba,Québec, Saskatchewan and Yukon) or harmonizedsales tax, which rates vary by province (13% in NewBrunswick, Newfoundland and Labrador andOntario; 15% in Nova Scotia and 14% in PrinceEdward Island); additionally to the GST, in Québec,administrative charges for self-insured plans aresubject to 9.975% sales tax.

■ Group disability, critical illness, accidental deathand dismemberment and life insurance plans aresubject to 8% retail sales tax in Manitoba.

40

IX. Tax Provisions (cont’d)

Newfoundland and Labrador 4%

Nova Scotia 3%

Prince Edward Island 3.5%

Québec 3.48%1

Saskatchewan 3%

ANTICIPATED CHANGE

■ A Bill to amend the Saskatchewan Pension Plan Act was introduced in late 2014; if enacted, this Bill would repeal theprevious Bill amending the Saskatchewan Pension Plan Act that had received Royal assent in 2013, but had not yet comeinto force. The new Bill contains the same changes (which include spousal priority and beneficiary designations fordeath benefits and mandatory 60% joint and survivor pensions for spouses) and makes other housekeeping changes

■ Voluntary money purchase retirement savingsplan: any person age 18 to 71 may participate;membership is not limited to Saskatchewanresidents; annual contributions may not exceed$2,500; contributions are tax-deductible up to theparticipant's RRSP deduction limit; contributions inexcess of the participant's RRSP deduction limit aresubject to the RRSP overcontribution rules; nogovernment matching contribution; after sixmonths of plan membership, contributions are

locked-in and must remain in the plan until death orretirement; preretirement death benefit equal to100% of contributions made together with accruedearnings on that amount; member may elect to startreceiving retirement benefits at any time from age55 or transfer funds to a Locked-in RetirementAccount (LIRA) or a Registered Retirement IncomeFund (RRIF); postretirement death benefit availabledepending on the form of pension; no minimumguaranteed monthly pension.

41

X.SASKATCHEWAN PENSION PLAN

This section deals with the continuation of provincial health insurance coverage for Canadian residents who work or travelfor work outside Canada. It also deals with eligibility to provincial health insurance coverage for Canadians who come backto Canada and foreigners who come to work to Canada. All provinces recommend that personal insurance coverage bepurchased for travel outside of Canada. It is strongly recommended that upon arrival in Canada an individual immediatelyregister with the appropriate provincial health care authorities to obtain coverage as soon as possible. Most provincialhealth care authorities require to be contacted before an individual leaves the country. All provinces will reimburse onlywithin their respective pre-established rates for emergency coverage outside of Canada.

42

XI. PROVINCIAL HEALTH INSURANCECOVERAGE OUTSIDE OF CANADA

ALBERTA BRITISH COLUMBIA MANITOBA

Alberta Health CareInsurance Plan (AHCIP)

Medical ServicesPlan (MSP)

Manitoba Health ServicesInsurance Plan (MHSIP)

PROVINCIAL HEALTH INSURANCE COVERAGE OUTSIDE OF CANADA

Requirements to maintaincoverage

Alberta residents are eligibleto maintain coverage if theynormally reside in Alberta atleast 183 days in a 12-monthperiod

If leaving for more than6 months: they may apply foran extension of coverage forup to 4 years for absence dueto work or business

British Columbia residentsare eligible to maintaincoverage if they arephysically present in BC forat least 6 months in acalendar year

If leaving BC for more than6 months for vacation orwork, coverage can beextended for up to24 months under certainconditions

Manitoba residents areeligible to maintain coverageif they are physically presentin Manitoba for at least6 months in a calendar year

If leaving for temporaryemployment, coverage canbe extended for up to24 months under certainconditions

Provincial health insurancecoverage outside of Canadain case of emergency

Coverage for emergencyprofessional services andhospital services at AHCIPrates

Professional services includemedically required servicesprovided by physicians andcertain services provided bydentists, optometrists,chiropractors and podiatrists

Hospital services for in-patients and out-patients

Coverage for emergencymedical services that aremedically required andhospital services that arenormally covered by the MSPat its rates

Medical services includeservices provided by aphysician or dentist

Hospital services include in-patient hospital care, daycare surgical services andonly out-patient dialysistreatment

Coverage for emergencymedical and hospitalservices resulting from anaccident or sudden attack orillness at MHSIP rates undercertain conditions

Emergency servicesprovided by a physician andemergency hospital servicesare covered. They includeout-patient and in-patientservices

43

XI. Provincial Health Insurance Coverage Outside of Canada (cont’d)

ALBERTA (CONT’D) BRITISH COLUMBIA (CONT’D) MANITOBA (CONT’D)

Alberta Health CareInsurance Plan (AHCIP)

Medical ServicesPlan (MSP)

Manitoba Health ServicesInsurance Plan (MHSIP)


Canadians withoutprovincial coveragereturning from a foreigncountry after workingabroad for their employer

Eligible for coverage on thedate of arrival provided theyestablish themselves asresidents of Alberta andregister within 3 months ofarrival

Eligible for coverage after awaiting period consisting ofthe balance of the month ofarrival plus 2 months

Eligible for coverage on thefirst day of the third monthafter arrival in Manitoba

Requirements for healthcoverage when a non-Canadian comes to Canadato work

Individuals moving toAlberta from outside Canadamay be eligible for coverageon the date of arrival if allrequirements are met withinthree months of arrival.Newcomers to Canada arerequired to present a copy oftheir Canada entrydocument

New residents establishingresidence in B.C. are eligiblefor coverage aftercompleting a waiting periodthat normally consists of thebalance of the month ofarrival plus two months

New residents may beeligible for health coveragewith adequate Citizenshipand Immigration Canadadocuments. Permanentresidents are eligible on dateof arrival or on the datepermanent residence isgranted. Holders of WorkPermit valid for at least12 months are eligible forcoverage on date of issue

44


NEWFOUNDLAND ANDLABRADOR

NEW BRUNSWICK NOVA SCOTIA

Newfoundland and LabradorMedicalCare Plan (MCP)

New BrunswickMedicare (NBM)

Nova Scotia MedicalServices Insurance (MSI)



Newfoundland and Labrador("NL") residents are eligibleto maintain coverage for upto 12 months for workpurposes outside of Canadaupon obtaining an out-of-province coveragecertificate. The certificatemay be renewed each yearto provide up to 3 years ofout-of-province coverage

New Brunswick residents areeligible to maintain NBMcoverage provided they livein New Brunswick for at least183 days (consecutive ornot) during a 12-monthperiod

A request can be made every3 years to extend coveragefor up to 12 months

If leaving for a longer period,coverage may be extendedfor up to 2 years if anapplication for "mobileworker" or "contractworker" status is granted

Nova Scotia residents areeligible to maintain coverageif they are ordinarily presentin Nova Scotia for 183 days ayear

Coverage may be continuedfor up to 1 year even thoughthe physical presencerequirement is not met:■ if they are mobile workers

(i.e. frequently traveloutside of Nova Scotiabecause of employment)and they do not establishresidency elsewhere; or

■ if they are engaged in anemployment outside ofCanada that does not exceed24 months and theirpermanent and primaryhome is in Nova Scotia


Coverage for medicalservices at MCP rates or atrates established by MCPdepending on thecircumstances

Out-of-country hospitalservices that would havebeen covered by MCP ifprovided in NL will bereimbursed at ratesdetermined by MCP

Medical services include allservices provided byphysicians in case of illnessrequiring medical treatment,and certain surgical dentaltreatment carried out by adentist in a hospital

Coverage for emergencymedical services at NBMrates or at rates establishedby NBM depending on thecircumstances

Hospital in-patient and out-patient emergency servicesare reimbursed at prescribedrates

Medical services includemedically required servicesprovided by physicians andcertain services provided bydentists and otherprofessionals

Coverage for emergencymedical services at MSI rates

Emergency hospitalizationservices and servicesprovided by a physician arecovered as a result of anaccident or sudden illness

NEWFOUNDLAND ANDLABRADOR (CONT’D)

NEW BRUNSWICK( CONT’D)

NOVA SCOTIA( CONT’D)

Newfoundland and LabradorMedicalCare Plan (MCP)

New BrunswickMedicare (NBM)

Nova Scotia MedicalServices Insurance (MSI)



Eligible for coverage on theday of arrival provided theybecome residents of NL

Eligible for coverage on thefirst day of the third monthfollowing the month ofarrival if they areestablishing residence inNew Brunswick

Eligible for coverage on thefirst day they becomepermanent residents ofNova Scotia

Requirements for healthcoverage when non-Canadians come to Canadato work

Canadian citizens, landedimmigrants, and foreignworkers must present proofof eligibility under the Plan.Landed Immigrants mustpresent Record of LandingDocuments fromImmigration Canada. IfLanded status was grantedin Newfoundland andLabrador, proof of intentionto remain in Newfoundlandand Labrador may berequired. All foreignapplicants should beprepared to present a validforeign passport foridentification purposes

Individuals who have movedto New Brunswick may beeligible for New BrunswickMedicare coverage on thefirst day of the third monthfollowing the month theyhave established permanentresidence in New Brunswick

Landed immigrants whoestablish permanentresidence in Nova Scotiabecome eligible on the daythey become residents

If Work Permit is issued:eligible to apply for MSIupon their arrival in NovaScotia, provided they will beremaining in Nova Scotia forat least one full year andhave signed a declaration.Coverage will begin on thedate of arrival in Nova Scotiaor the date the Work Permitwas issued, whichever is thelater date

45


46


ONTARIO PRINCE EDWARD ISLAND QUÉBEC

Ontario Health InsurancePlan (OHIP)

PEI Hospital and MedicalServices Plans

Régie de l'assurance maladiedu Québec (RAMQ)



Ontario residents are eligibleto maintain coverage if theyare physically present inOntario for 153 days in any12-month period, and arephysically present for153 days of the first183 days immediately afterestablishing their primaryplace of residence in Ontario

PEI residents must ordinarilybe present in PEI for at least6 months plus 1 day unless awaiver is obtained

Under some circumstances,health coverage foremergency or sudden illnessmay be extended for up toone year. Health PEI shouldbe notified prior todeparture

Québec residents must notspend 183 days or moreoutside Québec in anycalendar year (excludingperiods of 21 consecutivedays or less)

Exceptions may apply inspecial situations

Provincial health insurancecoverage outside ofCanada in case ofemergency

Coverage for emergencyhealth and hospital serviceswithin OHIP rates if providedto an insured person

Medically necessary servicesfor an illness or injury that isacute and unexpected, thatarises outside Canada andrequires immediatetreatment, are covered.OHIP only pays very limitedamounts for servicesprovided by a physician,hospital or health facility

Coverage for basic healthservices and emergency orsudden illness at PEI ratesonly

Basic health services includeservices provided byphysicians when medicallyrequired and by otherpractitioners under certainconditions

Coverage for emergencyprofessional services orhospital services resultingfrom a sudden illness oraccident within RAMQ ratesprovided the same servicesare covered in Québec

Emergency professionalservices covered are thoseprovided by physicians,dentists, optometrists orpharmacists

47


ONTARIO (CONT’D)PRINCE EDWARD ISLAND(CONT’D)

QUÉBEC (CONT’D)

Ontario Health InsurancePlan (OHIP)

PEI Hospital and MedicalServices Plans

Régie de l'assurance maladiedu Québec (RAMQ)



Eligible for coverage afterbeing residents for 3 fullconsecutive months,provided they have notstopped being residentssince meeting 3-monthwaiting period requirement

Eligible for coverage on thefirst day they becomepermanent residents of PEIprovided they show proof ofCanadian citizenship

Eligible for coverage after awaiting period of up to3 months following theirregistration

Requirements for healthcoverage when non-Canadians come to Canadato work

There may be a 3-monthwaiting period for OHIPcoverage. If the person is anewcomer to Ontario, thewaiting period begins on thedate the person establishesresidence in Ontario. Theperson is also required to bepresent in Ontario for 153days of the first 183 daysimmediately following thedate residency is establishedin Ontario

If establishing permanentresidence in PEI, they maybe eligible for provincialhealth insurance on the firstday they become residents.Citizens of other countrieswill have their status inCanada confirmed with theDepartment of Immigration

Individuals who take upresidence in Québec may beeligible after a waitingperiod of up to 3 monthsfollowing registration

If a social securityagreement is signedbetween Québec and thenon-Canadian’s country oforigin, then the 3-monthwaiting period may bereduced

RECENT CHANGE

■ Nova Scotia: as of August 1, 2014 Nova Scotia residents are permitted to vacation outside of the province for anadditional month, for a total of seven months in each calendar year, and continue to be eligible for Medical ServicesInsurance

48


SASKATCHEWAN

Saskatchewan Health Benefit (SHB)



Saskatchewan residents are eligible to maintain coverage if they are physically present inSaskatchewan for a period of at least 6 months each year

If leaving for up to 1 year for the purpose of a business engagement or employment,coverage can be maintained during the absence. Under certain conditions, coverage canbe maintained if person has obtained a work contract outside of Canada not exceeding24 months


Coverage for emergency medical or hospital care up to SH pre-set rates

Emergency hospital services covered are those provided for emergency medical care froman approved general hospital outside of Canada if the same services would be covered inSaskatchewan

Medical services include services provided by a physician or optometrist in case ofemergency.

Hospital services include in-patient services and out-patient hospital visits


When returning after an absence of more than 24 months, may be eligible for coverageupon establishing residence in Saskatchewan within 3 months of arrival to Canada

Requirements for healthcoverage when non-Canadians come toCanada to work

If they are permanent residents or employed under a work permit, they will be eligible onthe day that they establish residence in Saskatchewan, provided residence is establishedbefore the first day of the third month after having been admitted to Canada

This document was prepared by Mercer. It isintended as an overview of Canadian legislatedbenefits (except Nunavut and NorthwestTerritories).

Mercer is a global consulting leader in talent, health,retirement and investments. Mercer works withclients to solve their most complex benefit andhuman capital issues, designing and helpingmanage health, retirement and other benefits.Mercer's investment services include investmentconsulting and multi-manager investmentmanagement.

The information in this publication in no wayconstitutes specific advice and should not be usedas a basis for formulating business decisions.

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