FOLLOW-UP RESPONSES FROM THE APPEARANCE OF ESDC OFFICIALS BEFORE - SENATE STANDING COMMITTEE ON SOCIAL AFFAIRS, SCIENCE AND TECHNOLOGY (SOCI) ...

FOLLOW-UP RESPONSES FROM THE
               APPEARANCE OF ESDC OFFICIALS BEFORE

     SENATE STANDING COMMITTEE ON SOCIAL AFFAIRS, SCIENCE AND
                       TECHNOLOGY (SOCI)

SUBJECT MATTER OF PART 35 AND 36 OF BILL C-30, BUDGET IMPLEMENTATION
                           ACT, 2021, NO. 1

                           (MAY 13, 2021)

1.   SENATOR BLACK - FRAUDULENT CLAIMS PREVENTION

 •   Service Canada takes the integrity of its programs very seriously.

 •   In order to deal with the high volumes of applications and get money to
     eligible Canadians as quickly as possible during the pandemic, a number of
     temporary measures were implemented to simplify policy and processes
     while maintaining the integrity of the EI program through largely post-payment
     verification. Simplification measures included moving to a flat rate and using
     attestations over the requirement for documentation.

 •   We know that in time of crisis, the risk of fraud is heightened and we continue
     to conduct investigations to identify and address cases of error and fraud.

 •   Service Canada uses data analytics and intelligence capabilities to actively
     monitor and identify cases of error and fraud.

 •   In addition, the Department has been working closely with key partners,
     including other government departments and law enforcement agencies, to
     detect and disrupt cases of possible fraud.

 •   Throughout the pandemic, the department leveraged its analytics and
     intelligence capabilities to disrupt, detect and prevent fraud. As a result the
     Department was able to identify and implement stop payments for
     approximately 30,000 potentially fraudulent applications for the EI ERB,
     preventing approximately $42 million in potentially erroneous payments from
     being issued.

 •   In cases where claimants are found to be ineligible to receive the Canada
     Emergency Response Benefit, they will be required to reimburse the
     overpayment.

 •   The Government’s Fall Economic Statement announced $260 million over
     four years for ESDC and the CRA to increase the capacity to detect,
     investigate, and address cases of misrepresentation or fraud related to the
     Canada Emergency Response Benefit.

 •   This investment will ensure the proper stewardship of the program.

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2.   SENATOR MOODIE – DATA SEGMENTATION

We would have a NIL to provide.

This data segmentation is not yet available. ESDC is working with CRA and
Statistics Canada to allow for further analysis and insights into specific populations,
such as persons with disabilities.

  3.   SENATOR OMIDVAR – QUICKER PAYMENTS TO CERB/CRB RECIPIENTS

CRA being responsible for this question, they will send the answer to the Committee.

  4.   SENATOR OMIDVAR – EVOLUTION OF CRCB UPTAKE

On October 2, 2020, the Government announced the introduction of three temporary
recovery benefits, including the Canada Recovery Caregiving Benefit (CRCB). At the
time of its introduction, the CRCB provided $500 per week for up to 26 weeks
between September 27, 2020 and September 25, 2021 to persons who have been
unable to work a minimum of 50% of their scheduled work week because they had
to care for a child under the age of 12 or another family member who requires
supervised care because:

            o      their school, daycare, day program, or care facility that they
                   normally attend is unavailable, closed or open only certain times
                   or for certain individuals; or
            o      the care services or the person who usually cares for the child or
                   family member is not available due to COVID-19; or
            o      they are sick or have symptoms of COVID-19 and/or have been
                   directed to self-isolate or quarantine for reasons related to
                   COVID-19; or
            o      they are at high risk of serious health complications if they
                   contracted COVID-19.

   •   In recognition of the ongoing impact of the pandemic and that many schools
       across the country remained closed, on March 18, 2021, the Government of
       Canada increased the maximum number of weeks available under the CRCB,
       by 12 weeks (up from 26 weeks) to 38 weeks.

   •   On April 19, Budget 2021 proposed to further extend the CRCB by an
       additional 4 weeks, to a maximum of 42 weeks. This extension will ensure

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that workers who could begin to exhaust their CRCB as early as June 19,
       2021 would continue to have access to supports in the event that caregiving
       options are not available in the interim as the economy continues to safely
       reopen.

   •   Budget 2021 also announced legislative amendments to provide authority for
       additional potential extensions of the Canada Recovery Benefits and its
       associated suite of sickness and caregiving benefits until no later than
       November 20, 2021, if additional flexibility is required based on public health
       considerations later this year.

Take-up Trends

   •   As of May 9, 2020, 4,587,360 applications for the CRCB have been made to
       date representing 394,230 unique applicants, for a gross dollar value of $2.29
       billion.

   •   The number of applications made for individual weekly benefit periods have
       remained fairly stable since the launch of the benefit, varying from a low of
       approximately 130,000 applications made for the first week that the benefit
       was introduced (September 27 to October 3, 2020) to a high of approximately
       167,000 applications for the week of January 3 to January 9, 2021. An
       average of 148,000 applications per weekly benefit period have been
       submitted since the benefit was introduced.

   •   At the time of its launch, it was estimated that approximately 700,000 unique
       applicants would apply for the CRCB over the one year period between
       September 27, 2020 and September 25, 2021. These estimates were based
       on projections of the trajectory of the pandemic at the time.

  5.   SENATOR MÉGIE – COST OF EI CHANGES FOR SMALL BUSINESSES

The Government has committed to keep Employment Insurance premium rates
frozen until 2023.

The current forecast anticipates a gradual increase in premium rates, beginning in
2023, from $1.58 to $1.83 per $100 insurable earnings for employees ($2.21 to
$2.56 for employers) by the end of the horizon. This would result in a premium rate
that is still lower than the peak level of rates at $1.88 following the 2008-09
recession. Annual changes to the premium rate are subject to a legislated limit of 5
cents that ensures stable and predictable premium rates for Canadian workers and
employers.

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At the same time, Budget 2021 announced $5 million over two years, starting in
2021-22, to conduct targeted consultations on future longer-term EI reforms with
Canadians, employers, and other stakeholders from across the country. The details
and dates of the consultations will be shared once available, but are expected to
include discussions with employer groups, including issues of specific interest to
small businesses.

Any future changes to EI will impact the premium rates paid by workers and
employers once the rate freeze ends in January 2023. To avoid unduly affecting
small-businesses and other employers, we must weigh the public policy trade-offs
that come with changes to the program and focus on the issues most urgent to
Canadians.

Budget 2021 also announced that the government intends to launch consultations
with employers, labour organizations, and private insurers regarding improvements
that may be required to the EI Premium Reduction Program following the
announcement to permanently increase EI sickness benefits from 15 to 26 weeks. It
will be crucial to hear from the business community, including small and medium
enterprises, during these consultations. The details and dates of these consultations
will also be shared once available.

Given the tripartite nature of the EI Program, the Commissioner for Workers and the
Commissioner for Employers play an important role on the delivery of program and
the engagement of stakeholders. As the consultations move forward, it is expected
that the EI Commissioner(s) will be involved in the consultation process on behalf of
their respective constituents.

  6.   SENATOR FOREST-NIESING – OPERATING COST OF ASSOCIATED WITH
       MEASURES IN DIVISION 35

CRA being responsible for this question, they will send the answer to the Committee.

  7.   ADDITIONAL FOLLOW-UP QUESTIONS PERTAINING TO EI ZONES
       (RECEIVED ON MAY 18, 202)

A. My understanding is that the computer system will not allow for there to be
   concurrently two zones for seasonal workers and one EI zone for regular
   benefits. Therefore, as long as this pilot is running, changes to the zones for
   regular benefits to restore PEI to one EI zone cannot be made in regulation
   unless parallel changes are made in legislation to this pilot program due to the

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primacy of statute law over regulations. The only means to change the zones is
   via a subsequent amendment to the Employment Insurance Act?

   Response:

   Currently EI regions, for the purposes of Part I and VIII of the Employment
   Insurance Act, are defined in Schedule I of the Employment Insurance
   Regulations.

   Bill C-30 proposes to create Schedule VI of the Employment lnsurance Act to list
   the EI regions (and the Statistics Canada geographic units which make them up)
   that are part of the seasonal EI claimant measure.

   Bill C-30 does not propose to amend Schedule I of the Employment Insurance
   Regulations.

   Changes to the Employment Insurance Regulations would be required to restore
   PEI to one EI region for the purpose of the EI program.

B. Could you confirm that if C-30 becomes law, is not possible to change the EI
   zones for seasonal workers via regulations. As the EI zones will be part of the
   Employment Insurance Act, they can only be amended via an Act of Parliament
   for as long as these sections are in force until late 2022?

   Response:

   If Bill C-30 becomes law, the EI regions that are part of the seasonal EI claimant
   measure will be defined in the Employment lnsurance Act.

   Both of the EI economic regions in PEI (Charlottetown and PEI) are included as
   part of the seasonal measure. Should C-30 become law and should amendments
   subsequently be made to the EI Regulations to combine these two regions,
   amendments would not be required to the Employment Insurance Act.

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