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Human Resources and Social Development Canada
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Supplementary Information
Organizational Information
Text version:
Organizational Chart
Human Resources and Social Development Canada
Level 1:
There are two Ministers: the Minister of Labour, and the Minister of Human Resources and Social Development.
Level 2:
There is a Parliamentary Secretary who supports the Minister of Human Resources and Social Development.
The Canada Pension Plan and Old Age Security Review Tribunals report to the Minister of Human Resources and Social Development.
Level 3:
The Deputy Minister reports to the Minister of Human Resources and Social Development.
The Commissioner for Employers and the Commissioner for Workers report to the Deputy Minister.
The Deputy Minister of Labour, who is also the Associate Deputy Minister of Human Resources and Social Development, reports to the Minister of Labour and the Deputy Minister of Human Resources and Social Development.
The Deputy Head of Service Canada, who is also the Associate Deputy Minister of Human Resources and Social Development, reports to the Deputy Minister.
The Comptroller reports to the Deputy Minister.
The Chief Audit Executive reports to the Deputy Minister.
Senior General Counsel reports to the Deputy Minister.
Level 4:
In this level, eleven branches are listed.
The Labour branch reports to the Deputy Minister of Labour (Associate Deputy Minister of Human Resources and Social Development).
The following ten branches report to the Deputy Minister: Employment Programs Policy and Design; Workplace Skills; Learning; Human Resources and Corporate Management; Strategic Policy; Strategic Policy - Children and Families; Housing and Homelessness; Public Affairs and Ministerial Services; Social Development Sectors; and Strategic Analysis, Audit and Evaluation.
The Comptroller also reports to the Deputy Minister.
Text version:
Organizational Chart
Human Resources and Social Development Canada - Service Canada
Level 1:
There is a Deputy Head of Service Canada, who is also the Associate Deputy Minister of Human Resources and Social Development Canada.
Level 2:
The Chief Audit Executive reports to the Deputy Head.
The Director General of Marketing and Communications reports to the Deputy Head.
The Chief Financial Officer reports to the Deputy Head.
The Chief Information Officer reports to the Deputy Head.
At this level six branches are listed: Integrity Services; Citizen and Community Service; Operations; Business Integration; Policy, Partnerships and Corporate Affairs; and People and Culture.
The ten regions also report to the Deputy Head.
Financial Tables
Please note that financial tables provided in this section present Human Resources and Skills Development and Social Development separately in order to align with the 2006-2007 Main Estimates.
| Total Authority | Planned Spending | |||
| Program Activities (millions of dollars) | 2005-2006 | 2006-2007 | 2007-2008 | 2008-2009 |
| Budgetary Main Estimates | ||||
| Employment Insurance | 804.9 | 883.5 | 880.7 | 883.0 |
| Employment Programs | 893.0 | 969.1 | 968.6 | 933.8 |
| Workplace Skills | 168.8 | 184.5 | 181.7 | 120.0 |
| Learning | 929.5 | 1,226.9 | 1,193.0 | 1,201.5 |
| Labour | 205.8 | 217.3 | 222.2 | 224.6 |
| Homelessness | 180.0 | 188.3 | 3.3 | 3.3 |
| Policy and Program Support | 232.7 | 103.2 | 89.6 | 88.7 |
| Service Delivery | 118.8 | 128.1 | 128.7 | 129.0 |
| Gross Budgetary Main Estimates | 3,533.5 | 3,900.9 | 3,667.8 | 3,583.9 |
| Less: Respendable Revenue | (1,347.0) | (1,425.8) | (1,414.9) | (1,414.6) |
| Net Budgetary | 2,186.5 | 2,475.1 | 2,252.9 | 2,169.3 |
| Non-Budgetary | ||||
| Loans disbursed under Canada Student Financial Assistance Act | 1,040.8 | 981.5 | 769.1 | 560.8 |
| Adjustments: | ||||
| Governor General Special Warrants | 53.7 | - | - | - |
| Others: | ||||
| - OBA Transfer - Freeze | (0.7) | - | - | - |
| - Carry - forward CRF | (5.9) | - | - | - |
| - Expenditure Review Committee Departmental Savings | (6.0) | - | - | - |
| - TB Vote 5 | 0.3 | - | - | - |
| - Employee Benefit Plan (EBP) | (2.2) | - | - | - |
| Sub-Total Others: | (14.5) | - | - | - |
| Statutory Adjustment for the Public Accounts - Budgetary | 57.5 | - | - | - |
| Statutory Adjustment for the Public Accounts - Non-Budgetary | 290.5 | - | - | - |
| Procurement Savingsa | ||||
| - Employment Insurance | n/a | (0.4) | - | - |
| - Employment Programs | n/a | (0.4) | - | - |
| - Workplace Skills | n/a | (0.1) | - | - |
| - Learning | n/a | (0.2) | - | - |
| - Labour | n/a | (0.3) | - | - |
| - Homelessness | n/a | (0.1) | - | - |
| - Policy and Program Support | n/a | (0.1) | - | - |
| - Service Delivery | n/a | (0.2) | - | - |
| Sub-Total Procurement Savings | n/a | (1.8) | - | - |
| CSLP - Reduction of Parental Contribution | n/a | - | 15.0 | 20.0 |
| Apprenticeship Incentive Grant | n/a | 25.0 | 100.0 | 105.0 |
| Foreign Credential Recognition Agency | n/a | 2.0 | 10.0 | 6.0 |
| 5 Weeks Pilot Project | n/a | 0.1 | 0.1 | - |
| Government of Canada Advertising Plan | n/a | (0.5) | - | - |
| Cree Regional Authority | n/a | 6.9 | - | - |
| Winter Games Olympics 2010 | n/a | 0.2 | 0.2 | 0.4 |
| Workplace Partners Panel | n/a | 2.0 | 2.0 | - |
| Workplace Skills Strategy | n/a | 0.3 | - | - |
| Wage Earner Protection Program | n/a | 32.2 | 32.2 | 32.2 |
| Workplace Skills - Trades and Apprenticeship Strategy | n/a | - | - | 2.6 |
| EI - Compassionate Care Benefits | ||||
| At Gross | n/a | 0.7 | 0.7 | 0.7 |
| EI recovery credited to the vote | n/a | (0.7) | (0.7) | (0.7) |
| Aboriginal Skills Employment Partnerships | n/a | 5.3 | - | - |
| Reduced Cost of the new Ministry - Smaller Cabinet | n/a | (0.9) | (0.9) | (0.9) |
| Canada Student Loan - Debt write-off | n/a | 0.4 | - | - |
| LMDA with Ontario - Workforce Adjustment Costs | n/a | 8.5 | - | - |
| LMDA with Ontario - EI Admin | ||||
| At Gross | n/a | 8.6 | 8.6 | 8.6 |
| EI recovery credited to the vote | n/a | (8.6) | (8.6) | (8.6) |
| Total Adjustments | 387.2 | 79.7 | 158.6 | 165.3 |
| Total Planned Spending (Net) | 3,614.5 | 3,536.3 | 3,180.6 | 2,895.4 |
| Specified Purpose Accounts | ||||
| Employment Insurance (EI) | 16,111.6 | 16,260.7 | 16,877.4 | 17,473.9 |
| Other Specified Purpose Accounts | 51.4 | 48.3 | 45.4 | 42.7 |
| Departmental Recoveries charged to the Canada Pension Plan | 15.3 | 14.7 | 14.7 | 14.7 |
| Departmental Employee Benefit Plan recoverable from EI Account | (149.7) | (140.7) | (139.1) | (138.6) |
| Total HRSDC Consolidated | 19,643.1 | 19,719.3 | 19,979.0 | 20,288.1 |
| Less: Non-Respendable Revenue | 549.6 | 648.5 | 733.1 | 807.0 |
| Plus: Cost of services received without charge | 17.9 | 17.7 | 16.4 | 16.0 |
| Total HRSDC | 20,210.6 | 20,385.5 | 20,728.5 | 21,111.1 |
| Full Time Equivalents | 17,094 | 18,068 | 17,514 | 17,366 |
| a. 2006-2007 gross procurement savings total $10.1 million. After recoveries to the Employment Insurance Account of $8.2 million, the Consolidated Revenue Fund portion (or net) is $1.8 million. | ||||
Financial Highlights
Consolidated spending under Human Resources and Skills Development authorities is expected to be $19,719.3 million in 2006-2007. This represents an increase of $76.2 million over the 2005-2006 total authorities of $19,643.1 million. The variance is mainly due to:
- an increase of $31.3 million in net operating expenditures mainly due to:
- additional administration resources of $24.8 million for programs such as:
- Trades and Apprenticeship Strategy ($8.8 million) to work with provinces, territories and stakeholders to strengthen apprenticeships in the 45 Red Seal trades;
- Workplace Skills Innovation ($5.7 million) for the implementation of this program including activities such as assessment of projects, managing Calls for Proposals, accountability, compliance and evaluation;
- Wage Earner Protection Program ($3.2 million) which is designed to pay certain employees of bankrupt companies their unpaid wages and vacation pay up to $3,000;
- the new Canada Learning Bond and enhanced Canada Education Savings Grant ($2.8 million),
- National Literacy Secretariat ($2.0 million) to develop a national strategy on literacy and essential skills;
- Immigration Portal ($1.3 million) for the development of information for prospective and new immigrants on credential and skills assessment and employment opportunities;
- Foreign Credential Recognition Agency ($1.0 million) announced in Budget 2006, to facilitate the consultation process and to take the first steps toward the establishment of a Canadian agency for assessment and recognition of foreign-trained immigrant credentials;
- an increase for costs related to the signature of the Labour Market Development Agreement with the Province of Ontario ($8.5 million),
- allocation from the Government Advertising Plan and public notices campaigns ($1.0 million),
- These increase are offset by:
- reduced costs of the new Ministry as a result of a smaller Cabinet($0.8 million); and
- savings to be achieved through reduction of procurement expenditures ($1.4 million);
- additional administration resources of $24.8 million for programs such as:
- an increase of $20.6 million in voted grants and contributions mostly related to:
- increases for new or enhanced programs such as:
- Workplace Skills Initiative ($34.7 million) to support partnership-based projects to test new approaches to encourage employer investment in workplace skills development, with a focus on small and medium-sized enterprises;
- the introduction of the Apprenticeship Incentive grant announced in Budget 2006 ($25.0 million);
- the National Literacy Secretariat to promote literacy in the workplace ($8.6 million);
- Foreign Credential Recognition ($6.9 million) to work with partners and stakeholders to help immigrants maximize their skills potential and contributions to the Canadian labour market;
- the World Urban Forum Vancouver 2006 ($4.7 million), a worldwide event focusing on cities, shelter and urbanization;
- the Sector Council Initiative ($4.0 million) to support activities of new and exemplary sector councils in addressing skills and learning issues in Canada's labour market;
- Training Centre Infrastructure Fund ($ 3.7 million) to support employer-union training centres in the purchase of new machinery and equipment for trades that have undergone significant technological change, broadened scope, or new curricula;
- Canada Learning Bond and Canada Education Savings Grants ($3.0 million);
- Workplace Partners Panel ($2.0 million) to provide a national forum for increased industry engagement, providing prominence and visibility, fostering ownership and engagement, and generating and to disseminating information on workplace skills issues;
- Foreign Credential Recognition Agency ($1.0 million) announced in Budget 2006, to facilitate the consultation process and to take the first steps toward the establishment of a Canadian agency for assessment and recognition of foreign-trained immigrant credentials;
- Kativik Regional Government ($1.0 million) for Inuit employment programming, pursuant to regular employment programs and services, funding for child care services, additional funding for special training programs needed to qualify the Inuit for jobs created by existing or planned developments in the Kativik Regional Government territory;
- Cree Regional Authority ($1.0 million) for the implementation of territorial programs in the James Bay territory in various skills development key areas such as tourism, hydro development, construction and forestry;
- These increases are offset by a decrease of $60.0 million related to the transfer of the Toronto Waterfront Revitalization Initiative and a decrease of $20.1 million related to the National Homelessness Initiative;
- increases for new or enhanced programs such as:
- An increase of $219.7 million in statutory payments mainly related to the introduction of the Canada Learning Bond ($42.8 million), the enhancement and the increasing trend in the demand of the Canada Education Savings Grant ($112.5 million) and the increase of the Canada Student Loans Program ($34.5 million) and the Wage Earner Protection Program ($28.7 million), which is designed to pay certain employees of bankrupt companies their unpaid wages and vacation pay up to $3,000;
- a net decrease of $349.8 million for loans disbursed under the Canada Student Financial Assistance Act which is primarily due to the impact of loan reimbursements from borrowers in the loan portfolio; and
- an increase of $158.1 million for planned Employment Insurance (EI) Account spending.
For 2007-2008, the consolidated planned spending is anticipated to be $19,979.0 million, which represents an increase of $259.7 million from the 2006-2007 planned spending. The major changes are as follows:
- a net decrease of $42.3 million in operating expenditures, mainly due to a decrease of $22.2 million related to the administration of the National Homelessness Initiative, a decrease of $8.5 million for one-time costs related to the signature of the Labour Market Development Agreement with the Province of Ontario, a reduction of $7.5 million related to the allocation from the Government Advertising Plan, a decrease of $6.2 million for the administration of the Canada Learning Bond and the Canada Education Savings Grant, and a decrease of $5.6 million for the Canada Student Loan new recovery initiative. These decreases are offset by an increase of $5.0 million for the Foreign Credential Recognition Agency;
- a decrease of $83.2 million in voted grants and contributions, mainly due to a decrease of $138.3 million for Homelessness Initiative and of $9.6 million for the ending of the World Urban Forum, which is offset by an increase of $75.0 million for the Apprenticeship Incentive grant announced in Budget 2006;
- a decrease of $17.8 million in statutory payments mainly related to the Canada Education Savings Grant ($15.0 million) reflecting the stabilization of the RESP industry following the introduction of the enhanced CESG in 2005;
- a net decrease of $212.4 million for loans disbursed under the Canada Student Financial Assistance Act which is primarily due to the impact of loan reimbursements from borrowers in the loan portfolio; and
- an increase of $618.3 million for the Employment Insurance Account mainly due to an increase in forecasted EI Part I benefits of $616.0 million.
For 2008-2009, the consolidated planned spending is anticipated to be $20,288.1 million, which represents an increase of $309.1 million from the 2007-2008 planned spending. The major changes are as follows:
- an net decrease of $22.1 million in operating expenditures, mainly due to reductions related to the administration of Trades and Apprenticeship Strategy ($7.0 million), Workplace Skills Initiative ($5.6 million), Foreign Credential Recognition Agency ($3.0 million), National Literacy Program ($1.9 million), Aboriginal Skills Employment Partnership ($1.7 million) and Official Language Minority Communities ($1.6 million);
- a decrease of $84.3 million in voted grants and contributions, mainly due to a decrease in funding for Workplace Skills Initiative ($37.7 million), Aboriginal Skills Employment Partnership ($18.2 million), National Literacy Program ($13.8 million), Official Language Minority Communities ($12.0 million) and Training Centre Infrastructure Fund ($4.2 million);
- an increase of $29.5 million in statutory payments mainly related to an increased demand for the Canada Education Savings Grant ($15.0 million) and the Canada Learning Bond ($9.0 million) and the improvements to the Canada Student Loans program announced in Budget 2006 which will reduced the parental contribution ($5.0 million);
- a net decrease of $208.3 million for loans disbursed under the Canada Student Financial Assistance Act which is primarily due to the impact of loan reimbursements from borrowers in the loan portfolio; and
- an increase of $596.0 million for the Employment Insurance (EI) Account mainly due to an increase in forecasted EI Part I benefits of $603.0 million.
| Total Authority 2005-2006 |
Planned Spending 2006-2007 |
Planned Spending 2007-2008 |
Planned Spending 2008-2009 | |
| ($ millions) | ||||
| Social Investment (exclude OAS Benefits) | 398.7 | 434.7 | 437.3 | 440.1 |
| Social Investment - OAS Benefits | 28,893.0 | 30,575.0 | 31,895.0 | 33,365.0 |
| 29,291.7 | 31,009.7 | 32,332.3 | 33,805.1 | |
| Social Development Policy & Innovation | 8.5 | 684.8 | 1,178.9 | 1,178.9 |
| Service Delivery | 476.1 | 508.8 | 507.7 | 509.8 |
| Budgetary Main Estimates (gross) | 29,776.3 | 32,203.3 | 34,018.9 | 35,493.8 |
| Less: Respendable Revenue | (276.6) | (301.2) | (302.7) | (302.5) |
| Total Main Estimates | 29,499.7 | 31,902.1 | 33,716.2 | 35,191.3 |
| Adjustments: | ||||
| Governor General Special Warrants | 31.3 | - | - | - |
| Other: | ||||
| - TB Vote 5 | 9.9 | - | - | - |
| - TB Vote 10 | 0.4 | - | - | - |
| - Employee Benefit Plan (EBP) | 11.1 | - | - | - |
| - Freezes | (24.3) | - | - | - |
| - Statutory Adjustments for the Public Accounts | 304.5 | - | - | - |
| 301.6 | - | - | - | |
| Advertising Initiative Campaign | n/a | (2.0) | - | - |
| Universal Child Care Benefit | n/a | 1,610.0 | 2,085.0 | 2,065.0 |
| Child Care - Prov./Terr. Agreements | n/a | 650.0 | - | - |
| New Child care spaces | n/a | - | 250.0 | 250.0 |
| National Early Learning | n/a | (650.0) | (1,150.0) | (1,150.0) |
| Energy Cost Benefit | n/a | 0.4 | - | - |
| Reduced cost of the new Ministry - Smaller Cabinet | n/a | (2.0) | (2.0) | (2.0) |
| Procurement Savings 1 | ||||
| - Social Investment | n/a | (0.5) | - | - |
| - Social Development Policy & Innovation | n/a | (0.1) | - | - |
| - Service Delivery | n/a | (2.5) | - | - |
| Total Procurement Savings | n/a | (3.1) | - | - |
| Total Adjustments | 332.9 | 1,603.3 | 1,183.0 | 1,163.0 |
| Total Planned Spending (net) | 29,832.6 | 33,505.4 | 34,899.2 | 36,354.3 |
| Specified Purpose Accounts | ||||
| Canada Pension Plan (CPP) | 25,385.0 | 26,530.1 | 27,896.9 | 29,318.8 |
| Departmental Recoveries charged to EI | 71.7 | 68.8 | 70.2 | 70.0 |
| Departmental Employee Benefit Plan recoverable from CPP | (19.3) | (17.8) | (17.9) | (17.9) |
| Total SDC consolidated | 55,270.0 | 60,086.5 | 62,848.4 | 65,725.2 |
| Less: Non-Respendable Revenue | 29.3 | 26.8 | 27.2 | 27.1 |
| Plus: Cost of services received without charge | 19.8 | 16.7 | 16.4 | 16.3 |
| Total SDC | 55,260.5 | 60,076.4 | 62,837.6 | 65,714.4 |
| Full Time Equivalents | 6,655 | 6,206 | 6,147 | 6,147 |
| 1.Total savings of $3.390 million less respendable revenues of $0.339 million. | ||||
Financial Highlights
Consolidated spending under Social Development Canada authorities is expected to be $60,086.5 million in 2006-2007. This represents an increase of $4,816.5 million over the 2005-2006 total authorities of $55,270.0 million. The variance is mainly due to:
- an increase of $39.9 million in net operating expenditures mainly due to:
- additional funds for the Participation and Activity Limitation Survey ($6.6 million);
- implementation of information campaigns directed at persons with disabilities, seniors, families and children ($4.0 million);
- administration of grant and contribution programs ($8.4 million);
- National Seniors Secretariat to provide a focal point for federal seniors-related efforts and support the development of a collaborative approach to seniors' issues with a diverse array of partners ($2.3 million);
- Official Languages Action Plan to support vibrant official language minority communities ($1.1 million);
- an increase to reference levels to reflect the repayment of resources which supported Year 2000 preparation ($10.5 million); and
- transfers from Human Resources and Skills Development ($2.8 million);
- These increases are offset by:
- reduced costs of the new Ministry as a result of a smaller Cabinet($1.8 million); and
- savings to be achieved through reduction of procurement expenditures ($2.4 million);
- an increase of $3,629.2 million in statutory payments mainly related to:
- an increase of $1,582.7 million to the Income Security Programs which reflects forecasts of client population and average benefit payments;
- an increase of $2,260.0 million for the introduction of the new Universal Child Care Benefit ($1,610 million) and payments to provinces and territories ($650.0 million) for the purpose of providing transition funding to phase-out the 2005 Early Learning and Child Care agreements signed by the previous government;
- a decrease of $210.5 million for Energy Cost Benefit payments, which are one-time payments of $125 (or $250 for couples) made in 2005-2006 to seniors entitled to receive the Guaranteed Income Supplement or the Allowance to deal with rising energy costs;
- an increase of $4.9 million for payments to private collection agencies;
- a decrease of $7.3 million to the employee benefit plan contributions; and,
- an increase of $1,145.1 million to the Canada Pension Plan (CPP). The increase in benefits of $1,155.5 million reflects forecasts of client population and average benefit payments. This increase is offset by a decrease of $10.4 million in the CPP administration costs.
For 2007-2008, consolidated planned spending is anticipated to be $62,848.4 million, which represents an increase of $2,761.9 million from the 2006-2007 planned spending. The major changes are as follows:
- an increase of $1,397.2 million in statutory payments mainly related to an increase of $1,320.0 million to the Income Security Programs based on forecasts of client population and average benefit payments, an increase of $475.0 million related to the Universal Child Care Benefit, a reduction of $650.0 million in payments to provinces and territories related to the transition funding to phase-out the 2005 Early Learning and Child Care agreements signed by the previous government and an increase of $250.0 million for the creation of new child care spaces; and
- an increase of $1,366.8 million to the Canada Pension Plan. This increase of $1,364.5 million in benefits reflects forecasts of client population and average benefit payments.
For 2008-2009, consolidated planned spending is anticipated to be $65,725.2 million, which represents an increase of $2,876.8 million from the 2007-2008 planned spending. The major changes are as follows:
- an increase of $1,452.3 million in statutory payments mainly related to an increase of $1,470.0 million to the Income Security Programs and an decrease of $20.0 million related to the Universal Child Care Benefits; and
- an increase of $1,421.9 million to the Canada Pension Plan . This increase of $1,420.9 million in benefits reflects forecasts of client population and average benefit payments.
| HUMAN RESOURCES AND SOCIAL DEVELOPMENT - PROGRAM ACTIVITIES | |||||||||||
| Program Activities 2006-2007 | |||||||||||
| 2006-2007 Planned Spending (millions of dollars) - net | Labour Market | Workplace Skills | Learning | Labour | Social Investment | Children and Families | Housing and Homelessness | Service Delivery | Policy, Research and Communication | Other - Specified Purpose Accounts | Total |
| Human Resources and Skills Development Canada | |||||||||||
| Employment Insurance | 99.4 | - | - | - | - | - | - | - | - | - | 99.4 |
| Employment Progams | 667.2 | - | - | - | - | - | - | - | - | - | 667.2 |
| Workplace Skills | - | 157.3 | - | - | - | - | - | - | - | - | 157.3 |
| Learning | - | - | 2,193.0 | - | - | - | - | - | - | - | 2,193.0 |
| Labour | - | - | - | 171.2 | - | - | - | - | - | - | 171.2 |
| Homelessness | - | - | - | - | - | - | 188.1 | - | - | - | 188.1 |
| Policy & Program Support | - | - | - | - | - | - | - | - | 28.8 | - | 28.8 |
| Service Delivery | - | - | - | - | - | - | - | 31.3 | - | - | 31.3 |
| Sub-Total HRSDC | 766.6 | 157.3 | 2,193.0 | 171.2 | - | - | 188.1 | 31.3 | 28.8 | - | 3,536.3 |
| Social Development Canada | |||||||||||
| Social Investment | - | - | - | - | 30,960.1 | 2,282.8 | - | - | - | - | 33,242.9 |
| Social Development`Policy & Innovation | - | - | - | - | - | - | - | - | 45.8 | - | 45.8 |
| Service Delivery | - | - | - | - | - | - | - | 216.7 | - | - | 216.7 |
| Sub-Total SDC | - | - | - | - | 30,960.1 | 2,282.8 | - | 216.7 | 45.8 | - | 33,505.4 |
| Consolidated Net Planned Spending | 766.6 | 157.3 | 2,193.0 | 171.2 | 30,960.1 | 2,282.8 | 188.1 | 248.0 | 74.6 | - | 37,041.7 |
| Specified Purpose Accounts | |||||||||||
| Employment Insurance (EI) Account | |||||||||||
| EI Part I - Income Benefits | 12,442.0 | - | - | - | - | - | - | - | - | - | 12,442.0 |
| EI Part II - Employment Benefits and Support | 2,137.5 | - | - | - | - | - | - | - | - | - | 2,137.5 |
| EI Doutful Accounts | - | - | - | - | - | - | - | - | - | 57.0 | 57.0 |
| EI Administration Costs | - | - | - | - | - | - | - | - | - | 1,624.2 | 1,624.2 |
| Sub-Total - EI | |||||||||||
| Account | 14,579.5 | - | - | - | - | - | - | - | - | 1,681.2 | 16,260.7 |
| Canada Pension Plan (CPP) | |||||||||||
| CPP Benefits | - | - | - | - | 26,132.3 | - | - | - | - | - | 26,132.3 |
| CPP Administration Costs | - | - | - | - | - | - | - | - | - | 397.7 | 397.7 |
| Sub-Total - CPP | - | - | - | - | 26,132.3 | - | - | - | - | 397.7 | 26,530.0 |
| Other Specified Purpose | |||||||||||
| Accounts | 48.3 | - | - | - | - | - | - | - | - | - | 48.3 |
| Departmental Employee Benefit Plan recoverable | |||||||||||
| from EI Account/CPP | - | - | - | - | - | - | - | - | - | (167.5) | (167.5) |
| Consolidated Total | 15,394.4 | 157.3 | 2,193.0 | 171.2 | 57,092.4 | 2,282.8 | 188.1 | 248.0 | 74.6 | 1,911.4 | 79,713.2 |
| 2006-2007 | |||||||||
| (millions of dollars) | Main Estimates Budgetary | Main Estimates Non- Budgetary | Adjustments (planned spending not in Main Estimates) | Total Planned Spending | |||||
| Program Activity | Operating | Grants and Contributions | Gross | Respendable Revenue | (Net) Total Main Estimates | Loans | Other | Procurement Savings | |
| Employment Insurance | 883.3 | 0.1 | 883.4 | (783.3) | 100.1 | - | (0.3) | (0.4) | 99.4 |
| Employment Programs | 429.0 | 540.2 | 969.2 | (322.2) | 647.0 | - | 20.6 | (0.4) | 667.2 |
| Workplace Skills | 96.1 | 88.4 | 184.5 | (56.4) | 128.1 | - | 29.3 | (0.1) | 157.3 |
| Learning | 162.2 | 1,064.7 | 1,226.9 | (15.6) | 1,211.3 | 981.5 | 0.4 | (0.2) | 2,193.0 |
| Labour | 213.4 | 3.9 | 217.3 | (78.0) | 139.3 | - | 32.2 | (0.3) | 171.2 |
| Homelessness | 40.4 | 147.9 | 188.3 | - | 188.3 | - | (0.1) | (0.1) | 188.1 |
| Policy and Program Support | 103.2 | - | 103.2 | (81.1) | 22.1 | - | 6.8 | (0.1) | 28.8 |
| Service Delivery | 128.1 | - | 128.1 | (89.2) | 38.9 | - | (7.4) | (0.2) | 31.3 |
| Total | 2,055.7 | 1,845.2 | 3,900.9 | (1,425.8) | 2,475.1 | 981.5 | 81.5 | (1.8) | 3,536.3 |
| 2006-2007 | ||||||||
| (millions of dollars) | Main Estimates Budgetary | Adjustments (planned spending not in Main Estimates) | Total Planned Spending | |||||
| Program Activity | Operating | Grants and Contributions | Gross | Respendable Revenue | (Net) Total Main Estimates | Other | Procurement Savings | |
| Social Investment | 138.1 | 30,871.6 | 31,009.7 | (30.4) | 30,979.3 | 2,264.1 | (0.5) | 33,242.9 |
| Social Development Policy and Innovation | 34.8 | 650.0 | 684.8 | (14.9) | 669.9 | (624.0) | (0.1) | 45.8 |
| Service Delivery | 508.8 | 0.0 | 508.8 | (255.9) | 252.9 | (33.7) | (2.5) | 216.7 |
| Total | 681.7 | 31,521.6 | 32,203.3 | (301.2) | 31,902.1 | 1,606.4 | (3.1) | 33,505.4 |
| Program Activities 2006-2007 | HUMAN RESOURCES AND SOCIAL DEVELOPMENT - PROGRAM ACTIVITIES | |||||||||
| 2006-2007 Planned Spending (millions of dollars) - net | Labour Market | Workplace Skills | Learning | Labour | Social Investment | Children and Families | Housing and Homelessness | Service Delivery | Policy, Research and Communication | Total |
| Former HRSDC | ||||||||||
| Employment Insurance | 99.4 | - | - | - | - | - | - | - | - | 99.4 |
| Employment Progams | 667.2 | - | - | - | - | - | - | - | - | 667.2 |
| Workplace Skills | - | 157.3 | - | - | - | - | - | - | - | 157.3 |
| Learning | - | - | 2,193.0 | - | - | - | - | - | - | 2,193.0 |
| Labour | - | - | - | 171.2 | - | - | - | - | - | 171.2 |
| Homelessness | - | - | - | - | - | - | 188.1 | - | - | 188.1 |
| Policy & Program Support | - | - | - | - | - | - | - | - | 28.8 | 28.8 |
| Service Delivery | - | - | - | - | - | - | - | 31.3 | - | 31.3 |
| Sub-Total Former HRSDC | 766.6 | 157.3 | 2,193.0 | 171.2 | - | - | 188.1 | 31.3 | 28.8 | 3,536.3 |
| Former SDC | ||||||||||
| Social Investment | - | - | - | - | 30,960.1 | 2,282.8 | - | - | - | 33,242.9 |
| Social Development Policy & Innovation | - | - | - | - | - | - | - | - | 45.8 | 45.8 |
| Service Delivery | - | - | - | - | - | - | - | 216.7 | - | 216.7 |
| Sub-Total Former SDC | - | - | - | - | 30,960.1 | 2,282.8 | - | 216.7 | 45.8 | 33,505.4 |
| Consolidated Total - Net Planned Spending | 766.6 | 157.3 | 2,193.0 | 171.2 | 30,960.1 | 2,282.8 | 188.1 | 248.0 | 74.6 | 37,041.7 |
| 2006-2007 | ||||
| (in millions of dollars) | ||||
| Voted or Statutory Item | Current Main Estimates | Previous Main Estimates | ||
| 1 | Operating expenditures | 323.2 | 266.0 | |
| 5 | Grants and contributions | 825.4 | 839.7 | |
| (S) | Minister of Human Resources and Skills Development - Salary and motor car allowance | 0.1 | 0.1 | |
| (S) | Minister of Labour - Salary and motor car allowance | 0.1 | 0.1 | |
| (S) | Payments related to the direct financing arrangement under the Canada Student Financial Assistance Act | 304.6 | 263.8 | |
| (S) | The provision of funds for interest payments to lending institutions under the Canada Student Loans Act | 0.1 | 0.1 | |
| (S) | The provision of funds for liabilities including liabilities in the form of guaranteed loans under the Canada Student Loans Act | 9.5 | 11.7 | |
| (S) | The provision of funds for interest and other payments to lending institutions and liabilities under the Canada Student Financial Assistance Act | 46.4 | 70.6 | |
| (S) | Canada Study Grants to qualifying full and part-time students pursuant to the Canada Student Financial Assistance Act | 119.9 | 83.0 | |
| (S) | Grants to the trustees of Registered Education Savings Plans (RESPs) for the benefit of beneficiaries named under those RESPs, pursuant to the Canada Education Savings Grant regulations of the Department of Human Resources Development Act | - | 430.0 | |
| (S) | Canada Education Savings Grant payments to Registered Educations Savings Plans (RESPs) trustees on behalf of RESP beneficiaries to encourage Canadians to save for post-secondary education of children | 575.0 | - | |
| (S) | Canada Learning Bond payments to Registered Education Savings Plans (RESPs) trustees on behalf of RESP beneficiaries to support access to post-secondary education to children from low-income families | 45.0 | - | |
| (S) | Supplementary Retirement Benefits - Annuities agents' pensions | - | - | |
| (S) | Labour adjustment benefits in accordance with the terms and conditions prescribed by the Governor in Council to assist workers who have been laid off as a result of import competition, industrial restructuring, or severe economic disruption | - | - | |
| (S) | Civil Service Insurance actuarial liability adjustments | 0.1 | 0.1 | |
| (S) | Payments of compensation respecting government employees and merchant seamen | 48.0 | 51.0 | |
| (S) | Contributions to employee benefit plans | 177.7 | 170.3 | |
| Total Budgetary | 2,475.1 | 2,186.5 | ||
| Loans disbursed under the Canada Student Financial Assistance Act | 981.5 | 1,040.8 | ||
| Total Department | 3,456.6 | 3,227.3 | ||
Financial Highlights
Human Resources and Skills Development Canada (HRSDC) Main Estimates for 2006-2007 total $3,456.6 million, representing a net increase of $229.3 million over the 2005-2006 Main Estimates amount of $3,227.3 million. The major changes are as follows:
- an increase of $57.2 million in net operating expenditures mainly due to:
- an increase related to the administration of Canada Education Savings Grant and Canada Learning Bond ($18.1 million);
- collective bargaining increases for staff ($12.8 million);
- administration of programs such as:
- Trades and Apprenticeship Strategy ($9.5 million) to work with provinces, territories and stakeholders to strengthen apprenticeships in the 45 Red Seal trades;
- Workplace Skills Innovation ($5.7 million) for the implementation of this program including activities such as assessment of projects, managing Calls for Proposals, accountability, compliance and evaluation;
- Labour Prevention Activities ($4.4 million) to enhance Integrity of Labour Program Delivery;
- Aboriginal Human Resources Development Strategy ($2.5 million) to help Aboriginal people find, prepare for, obtain and maintain employment;
- Canada Action Plan against Racism ($2.4 million) Labour to implement a Racism-Free Workplace Strategy aimed at removing barriers facing the employment and upward mobility of visible minorities and Aboriginal peoples in Canada and facilitate the integration of skilled individuals in Canadian workplaces;
- Immigration Portal ($2.3 million) for the development of information for prospective and new immigrants on credential and skills assessment and employment opportunities;
- National Literacy Secretariat ($2.0 million) to develop a national strategy on literacy and essential skills;
- Official Language Minority Communities ($1.6 million) to promote the vitality of these communities by ensuring they have the tools to enable their contribution;
- World Urban Forum Vancouver ($1.3 million) to organize and host this five-day international event with delegates expected from over 150 countries, which will take place June 19 - 23, 2006. This is a worldwide event focusing on cities, shelter and urbanization;
- Youth Internship Program ($0.9 million) for the transfer of the Federal Public Service Youth Internship Program, which represents the Government of Canada's commitment as a large national employer to supportthe transition of young people, particularly at-risk youth, into the labour market; and
- Training Centre Infrastructure Fund ($0.7 million) for the implementation and administration of this program including activities such as assessment of projects, managing Calls for Proposals,accountability, compliance and evaluation;
- allocation from the Government Advertising Plan for advertising campaigns related to Service Canada ($3.0 million) to promote citizen-centered government services;
- public notice campaigns ($0.7 million) including $0.65 million for Service Canada
- a decrease of $8.4 million related to the administration of grant and contribution programs; and
- various transfers to SDC ($2.8 million);
- a decrease of $14.3 million in voted grants and contributions largely due a decrease of $116.8 million related to the transfer of the Toronto Waterfront Revitalization Initiative. This decrease is reduced by increases of $102.5 million for new or enhanced programs such as:
- Workplace Skills Initiative ($31.7 million) to support partnership-based projects to test new approaches to encourage employer investment in workplace skills development, with a focus on small and medium-sized enterprises;
- Aboriginal Human Resources Development Strategy ($22.5 million) to help Aboriginal people find, prepare for, obtain and maintain employment;
- Official Language Minority Communities which provides for the development of human resources, economic growth and job creation and retention in those communities ($12.0 million);
- Training Centre Infrastructure Fund ($11.0 million) to support employer-union training centres in the purchase of new machinery and equipment for trades that have undergone significant technological change, broadened scope, or new curricula;
- the World Urban Forum Vancouver 2006, a worldwide event focusing on cities, shelter and urbanization, ($9.6 million);
- the National Literacy Secretariat to promote literacy in the workplace ($8.6 million);
- Early Learning and Child Care for First Nations' children living on reserve ($6.8 million) to build new ELCC centres, upgrade existing centres and to increase access to training for ELCC workers.
- an increase of $245.7 million in statutory program payments, mainly due to:
- an increase of $51.3 million in Canada Student Loans Program (CSLP) due to:
- an increase of $40.8 million in Payments related to the Direct Financing Arrangements under the Canada Student Financial Assistance Act due to enhancements to existing debt management measures, increase in administrative fees paid to participating provinces and changes to loans forgiveness;
- a decrease of $2.2 million in Liabilities under the Canada Student Loans Act due to downward estimate adjustments of Claim Payments base on the analysis of historical trend and the revised portfolio projections of the Guaranteed Loans portfolio;
- a decrease of $24.2 million in Interest and other Payments under the Canada Student Financial Assistance Act mainly due to enhancements to the existing debt management measures;
- an increase of $36.9 million for the Canada Study Grant mainly due to the implementation of two new Canada Access Grants for students with permanent disabilities and students from low-income families;
- the introduction of the new Canada Learning Bond ($45.0 million) which provide education savings for children in families entitled to the National Child Benefit;
- increased demand for the Canada Education Savings Grant ($145.0 million) which provide a grant to beneficiaries of a Registered Education Savings Plan. A new wording is being introduced in 2006-2007 Main Estimates due to coming into force of the Canada Education Savings Act and to include the purpose of encouraging Canadians to save for post-secondary education of children. $575.0 million is reflected under the new wording and $430.0 million under the old wording
- a net decrease of $3.0 million for Workers' Compensation related to an anticipated increase in revenues from other government departments and Crown corporations under the cost recovery initiative for Workers' Compensation;
- an increase of $7.4 million to the Employee Benefit Plan costs related to an increase in salary costs;
- an increase of $51.3 million in Canada Student Loans Program (CSLP) due to:
- a decrease of $59.3 million in non-budgetary payments for loans disbursed under the Canada Student Financial Assistance Act. This decrease is primarily due to the impact of increased loan reimbursements of $288.4 million from borrowers on the loan portfolio, offset by an increase of $229.1 million in Canada Student loans due to the increase of the loan limit from $165 to $210 per week of study.
| 2006-2007 | |||
| ($ millions) | |||
| Voted or Statutory Item | Voted or Statutory Wording | Current Main Estimates | Previous Main Estimates |
| 10 | Operating expenditures | 295.6 | 244.0 |
| 15 | Grants and contributions | 946.6 | 280.8 |
| (S) | Minister of Human Resources Development- Salary and motor car allowance | 0.0 | 0.1 |
| (S) | Old Age Security Payments | 23,255.0 | 22,209.0 |
| (S) | Guaranteed Income Supplement payments | 6,820.0 | 6,233.0 |
| (S) | Allowance Payments | 500.0 | 451.0 |
| (S) | Payments to private collection agencies pursuant to Section 17.1 of theFinancial Administration Act | 18.5 | 19.4 |
| (S) | Contribution to employee benefit plans | 66.4 | 62.4 |
| Total Department | 31,902.1 | 29,499.7 | |
Financial Highlights
Social Development Canada Main Estimates for 2006-2007 total $31,902.1 million, representing a net increase of $2,402.4 million over the 2005-2006 Main Estimates amount of $29,499.7 million. The major changes are as follows:
- an increase of $51.5 million in net operating expenditures mainly due to:
- the signing of new collective agreements ($10.7 million);
- additional funds for the Participation and Activity Limitation Survey which is a comprehensive national survey of Canadians with disabilities who live in private households ($6.6 million);
- implementation of information campaigns directed at people with disabilities, seniors, families and children ($6.0 million);
- administration of grant and contribution programs ($8.4 million),
- Understanding Early Years to help give Canadian children the best possible start in life by providing communities with information on the readiness-to-learn of their children ($5.0 million);
- New Horizons supporting local projects across Canada that encourage seniors to contribute to their communities through their social participation and active living ($1.9 million);
- Voluntary Sector Strategy a partnering of the federal government and the voluntary sector to put in place a framework of community-based collaboration and innovation to improve the economic and social well-being of Canadians ($1.5 million);
- National Seniors Secretariat to provide a focal point for federal seniors-related efforts and support the development of a collaborative approach to seniors' issues with a diverse array of partners ($2.3 million);
- Official Languages Action Plan to support vibrant official language minority communities, ($1.1 million);
- an increase to reference levels to reflect the repayment of resources which supported Year 2000 preparation ($10.5 million); and
- various transfers from Human Resources and Skills Development ($2.8 million).
- an increase of $665.9 million in voted grants and contributions largely due to:
- payments to provinces and territories for the purpose of providing transition funding
($650.0 million) to provinces and territories to phase-out the 2005 Early Learning and Child Care agreements signed by the previous government; - expanding Understanding the Early Years, to gather information about their children's readiness to learn, as well as information on influencing factors and local supports ($5.6 million);
- the New Horizon for Seniors program supporting local projects across Canada that encourage seniors to contribute to their communities through their social participation and active living ($7.8 million); and
- Grant to The Canadian Policy Research Networks Inc., which is an independent, non-profit research organization with charitable status. CPRN's mission is to inform the development of social and economic policy in Canada through research and public engagement ($3.0 million).
- payments to provinces and territories for the purpose of providing transition funding
- an increase of $1,685.0 million in statutory program payments, mainly due to:
- an increase of $1,682.0 million to the Income Security Programs comprised of: the Old Age Security payments ($1,046.0 million); the Guaranteed Income Supplement payments offering a supplemental revenue to the Old Age Security beneficiaries with low income ($587.0 million), and the Allowance payments, offering an additional income-tested benefit for low income surviving persons and for couples living on the Old Age Security benefits of only one spouse or common-law partner ($49.0 million). The increase is explained by the increasing overall population in persons 65+ over in receipt of OAS basic (2.31%), GIS (3.90%) and Allowance (4.95%), plus the increasing average annual benefit amount - OAS basic (2.73%), GIS (2.28%) and Allowance (4.57%);
- a decrease of $0.9 million for payments to private collection agencies as the default accounts will be sent more rapidly to the agencies; and
- an increase of $4.0 million to the employee benefit plan contributions related to an increase in salary costs.
| (millions of dollars) | 2006-2007 |
| Contributions covering employers' share of employees' insurance premiums and expenditures paid by Treasury Board Secretariat | 14.0 |
| Salary and associated expenditures of legal services provided by the Department of Justice Canada | 3 .7 |
| Total 2006-2007 Services received without charge | 17.7 |
| ($ millions) | 2006-2007 |
| Contributions covering employers' share of employees' insurance premiums and expenditures paid by TBS | 16.3 |
| Worker's Compensation coverage provided by Human Resources and Skills Development | 0.3 |
| Salary and associated expenditures of legal services provided by Justice Canada | 0.1 |
| Total 2006-2007 Services received without charge | 16.7 |
| Total Authority | Planned Revenue | |||
| (millions of dollars) | 2005-2006 | 2006-2007 | 2007-2008 | 2008-2009 |
| Learning | ||||
| Loans disbursed under the Canada Student Financial Assistance Act | 1,331.3 | 981.5 | 769.1 | 560.8 |
| Total | 1,331.3 | 981.5 | 769.1 | 560.8 |
| RESPENDABLE REVENUE | Total Authority | Planned Revenue | ||
| (millions of dollars) | 2005-2006 | 2006-2007 | 2007-2008 | 2008-2009 |
| Employment Insurance | ||||
| EI Recovery | 754.2 | 780.0 | 778.6 | 781.3 |
| Employment Programs | ||||
| EI Recovery | 328.7 | 330.1 | 330.7 | 325.0 |
| Workplace Skills | ||||
| EI Recovery | 69.1 | 62.0 | 56.7 | 56.7 |
| Learning | ||||
| EI Recovery | 7.4 | 15.8 | 15.6 | 15.6 |
| Labour | ||||
| Worker's Compensation - OGD | 76.6 | 77.4 | 78.4 | 80.4 |
| EI Recovery | 0.6 | 0.6 | 0.6 | 0.6 |
| 77.2 | 78.0 | 79.0 | 81.0 | |
| Homelessness | - | - | - | - |
| Policy and Program Support | ||||
| EI Recovery | 107.9 | 91.3 | 86.9 | 86.6 |
| CPP Recovery | 2.2 | - | - | - |
| 110.1 | 91.3 | 86.9 | 86.6 | |
| Service Delivery | ||||
| EI Recovery | 77.7 | 63.3 | 63.1 | 63.0 |
| CPP Recovery | 13.1 | 14.7 | 14.7 | 14.7 |
| 90.8 | 78.0 | 77.8 | 77.7 | |
| Total Respendable Revenue | 1,437.5 | 1,435.2 | 1,425.3 | 1,423.9 |
| NON-RESPENDABLE REVENUE | ||||
| Employment Insurance | ||||
| EBP Recovery from EI | 94.1 | 91.8 | 90.9 | 91.0 |
| Employment Programs | ||||
| EBP Recovery from EI | 30.2 | 25.8 | 25.8 | 25.3 |
| Workplace Skills | ||||
| EBP Recovery from EI | 8.0 | 6.4 | 6.3 | 6.2 |
| Learning | ||||
| EBP Recovery from EI | 0.7 | 1.3 | 1.3 | 1.3 |
| Canada Student Loans | 395.6 | 503.6 | 589.5 | 663.8 |
| 396.3 | 504.9 | 590.8 | 665.1 | |
| Labour - Service Fees | 2.2 | 2.2 | 2.4 | 2.5 |
| Homelessness - Recovery of EBP | - | - | - | - |
| Policy and Program Support Recovery of EBP | ||||
| EBP Recovery from EI | 4.1 | 6.6 | 6.2 | 6.2 |
| EBP Recovery from CPP | 0.1 | - | - | - |
| 4.2 | 6.6 | 6.2 | 6.2 | |
| Service Delivery Support Recovery of EBP | ||||
| EBP Recovery from EI | 12.5 | 8.7 | 8.6 | 8.6 |
| EBP Recovery from CPP | 2.1 | 2.1 | 2.1 | 2.1 |
| 14.6 | 10.8 | 10.7 | 10.7 | |
| Total Non-Respendable Revenue | 549.6 | 648.5 | 733.1 | 807.0 |
| Total Respendable and Non-Respendable Revenue | 1,987.1 | 2,083.7 | 2,158.4 | 2,230.9 |
| RESPANDABLE REVENUE | ||||
| Total Authority | Planned Revenue | |||
| (millions of dollars) | 2005-2006 | 2006-2007 | 2007-2008 | 2008-2009 |
| Social Investment | ||||
| EI Recovery | - | 5.7 | 5.4 | 5.4 |
| CPP Recovery | 52.7 | 43.3 | 43.6 | 43.5 |
| 52.7 | 49.0 | 49.0 | 48.9 | |
| Social Development Policy and Innovation | ||||
| EI Recovery | 11.5 | 8.6 | 9.2 | 9.2 |
| CPP Recovery | - | 12.9 | 12.7 | 12.7 |
| 11.5 | 21.5 | 21.9 | 21.9 | |
| Service delivery | ||||
| EI Recovery | 60.2 | 54.5 | 55.6 | 55.5 |
| CPP Recovery | 187.8 | 175.9 | 176.2 | 176.2 |
| 248.0 | 230.4 | 231.8 | 231.7 | |
| Total Respendable Revenue | 312.2 | 300.9 | 302.7 | 302.5 |
| NON-RESPENDABLE REVENUE | ||||
| Social Investment | ||||
| EBP Recovery from EI | - | 0.3 | 0.5 | 0.5 |
| EBP Recovery from CPP | 4.2 | 2.5 | 2.5 | 2.5 |
| User fee: Searches of the CPP and OAS data banks to locate individuals |
0.1 | 0.1 | 0.1 | 0.1 |
| 4.3 | 2.9 | 3.1 | 3.1 | |
| Social Development Policy and Innovation | ||||
| EBP Recovery from EI | 1.2 | 0.7 | 0.6 | 0.6 |
| EBP Recovery from CPP | - | 0.9 | 0.9 | 0.9 |
| 1.2 | 1.6 | 1.5 | 1.5 | |
| Service Delivery | ||||
| EBP Recovery from EI | 6.8 | 6.0 | 6.1 | 6.1 |
| EBP Recovery from CPP | 15.1 | 14.4 | 14.6 | 14.5 |
| User fee: Social Insurance Number Replacement | ||||
| Card Fee | 1.9 | 1.9 | 1.9 | 1.9 |
| 23.8 | 22.3 | 22.6 | 22.5 | |
| Total Non-Respendable Revenue | 29.3 | 26.8 | 27.2 | 27.1 |
| Total Respendable and Non-respendable Revenue | 341.5 | 327.7 | 329.9 | 329.6 |
| Program Activities 2006-2007 | HUMAN RESOURCES AND SOCIAL DEVELOPMENT - PROGRAM ACTIVITIES | |||||||||
| 2006-2007 Total Revenue (millions of dollars) | Labour Market | Workplace Skills | Learning | Labour | Social Investment | Children andFamilies | Housing and Homelessness | Service Delivery | Policy, Research and Communication | Total |
| Former HRSDC | ||||||||||
| Employment Insurance | 871.8 | - | - | - | - | - | - | - | - | 871.8 |
| Employment Progams | 355.9 | - | - | - | - | - | - | - | - | 355.9 |
| Workplace Skills | - | 68.4 | - | - | - | - | - | - | - | 68.4 |
| Learning | - | - | 520.7 | - | - | - | - | - | - | 520.7 |
| Labour | - | - | - | 80.2 | - | - | - | - | - | 80.2 |
| Homelessness | - | - | - | - | - | - | - | - | - | |
| Policy & Program Support | - | - | - | - | - | - | - | - | 97.9 | 97.9 |
| Service Delivery | - | - | - | - | - | - | - | 88.8 | - | 88.8 |
| Sub-Total Former HRSDC | 1,227.7 | 68.4 | 520.7 | 80.2 | - | - | - | 88.8 | 97.9 | 2,083.7 |
| Former SDC | ||||||||||
| Social Investment | - | - | - | - | 52.0 | - | - | - | - | 52.0 |
| Social Development Policy | ||||||||||
| & Innovation | - | - | - | - | - | - | - | - | 23.0 | 23.0 |
| Service Delivery | - | - | - | - | - | - | - | 252.7 | - | 252.7 |
| Sub-Total Former SDC | - | - | - | - | 52.0 | - | - | 252.7 | 23.0 | 327.7 |
| Consolidated Total Revenue | 1,227.7 | 68.4 | 520.7 | 80.2 | 52.0 | - | - | 341.5 | 120.9 | 2,411.4 |
| Regulations | Planned Results |
| Strategic Outcome: Enhanced Canadian productivity and participation through efficient and inclusive labour markets, competitive workplaces and access to learning | |
| No major regulatory initiatives have been identified for the Employment Insurance (EI) Program in 2006-2007. Regulatory changes to support EI operations and administration will be undertaken as required. | |
| Employment Insurance (EI) Fishing Regulations - section 77.4 | The change will ensure that entitlement to EI fishing benefits take into account the existence of Quebec's Parental Insurance Plan. |
| Employment Insurance (EI) Regulatory Amendment - Extended EI Benefits Pilot Project | The change will put in place the announced pilot project to test the impacts of increasing entitlement by five (5) additional weeks of regular benefits to EI claimants, up to a maximum of 45 weeks of benefits, in 21 EI regions. |
| Employment Insurance Regulatory Amendment -Compassionate Care Benefit | The change will broaden the definition of family member for determining eligibility for the Compassionate Care Benefit. |
| Strategic Outcome: Enhanced Canadian productivity and participation through efficient and inclusive labour markets, competitive workplaces and access to learning | |
| Housekeeping improvements to the Canada Student Loans Program regulatory framework: | The legislative and regulatory framework of the Canada Student Loans Program has undergone frequent, almost yearly, changes since the inception of the program. Ongoing legislative and regulatory improvements are required in order to keep step with these changes. |
| The Canada Student Loans Program is planning to move ahead with regulatory changes to make the program more effective and efficient as well as to clarify the rules regarding certain benefits. | |
| Amendments to the Canada Student Financial Assistance Regulations and the Canada Student Loans Regulations are required to implement these changes. | |
| Strategic Outcome: Safe, healthy, fair, stable, cooperative and productive workplaces and effective international labour standards | |
| Employment Equity Act - Employment Equity Regulations | Updated Regulations will include these consequential changes:
|
| Workplace Violence Prevention Regulations | These regulations are intended to prevent direct or indirect acts of violence in workplaces subject to federal jurisdiction. |
Over the three fiscal years (2006-2007 to 2008-2009), HRSDC will manage the following transfer payment programs in excess of $5 million:
|
| Further information on these projects can be found at http://www.tbs-sct.gc.ca/est-pre/20062007/p3a-eng.asp |
In 2006-2007, HRSDC will contribute to the Winnipeg Foundation using conditional grants; the remaining foundations received one-time funding in past years:
|
| Further information on these projects can be found at http://www.tbs-sct.gc.ca/est-pre/20062007/p3a-eng.asp |
During fiscal year 2006-2007, HRSDC will be involved in the following
horizontal initiatives. Unless otherwise mentioned in the list, HRSDC acts
as the lead Department for these initiatives.
|
| Supplementary information on Horizontal Initiatives can be found at http://www.tbs-sct.gc.ca/est-pre/20062007/p3a-eng.asp |
| In February 2006 the Departments of Social Development Canada and Human Resources and Skills Development Canada were combined into the new Department of Human Resources and Social Development. The sustainable development efforts of the former departments have been integrated and the priority for the planning period will be to complete the development of a new HRSDC Sustainable Development Strategy for 2007-2009. The Department will also continue to work toward completing the commitments from the final year of the 2004-2006 SDS. |
| The new departmental sustainable development strategy will articulate how environmental economic and social factors are considered in the development of policy and programs as well as in day-today operations. |
Objectives for the Planning Period
|
| Detailed information on the current Sustainable Development Strategy (SDS-III), including specific goals, objectives and targets can be seen at the following departmental website: http://www.hrsdc.gc.ca/en/cs/fas/as/sds/sdd.shtml . |
| As a result of the departmental reorganization, the internal audit and evaluation groups are redefining the audit and evaluation universe as well as updating and realigning risk factors to produce a new risk-based multi-year audit and evaluation plan reflective of the new departmental priorities and accountabilities. The Office of the Comptroller General's plan for horizontal audits and the audit schedule of the Office of the Auditor General will potentially affect the departmental plan. The following internal audit and evaluation projects should be viewed within this context. | |
| Evaluations to be completed in 2006-2007 | Internal Audit Plan 2006-2007 |
|
Employment Insurance Employment Programs Summative Evaluation of Labour Market Development Agreement — Alberta Workplace Formative Evaluation of the Foreign Credential Recognition Program Labour Strategic Evaluation of Workplace Equity Programs Learning Formative Evaluation of National Literacy Secretariat Homelessness and Housing Summative Evaluation of National Homelessness Initiative People with Disabilities Summative Evaluation of the Opportunities Fund for Persons with Disabilities, Phase I Other Evaluation of the World Urban Forum 3 |
Carry-over Projects from 2005-2006 2004-2005 Attest Audit of the Administrative Costs Charged to the Canada Pension Plan Account New Projects for 2006--2007 World Urban Forum — Phase I Labour Occupational Safety and Health Service Canada Grants and Contributions Financial and Activity Financial Audits Payroll Expenditures |
Specified Purpose Accounts
Introduction
Specified Purpose Accounts (SPA) are special categories of revenues and expenditures. They report transactions of certain accounts where enabling legislation requires that revenues be earmarked and that related payments and expenditures be charged against such revenues. The transactions of these accounts are to be accounted for separately.
HRSDC is responsible for the stewardship of four such accounts:
- the Employment Insurance (EI) Account
- the Canada Pension Plan (CPP)
- the Government Annuities Account
- the Civil Service Insurance Fund
The EI Account is a consolidated SPA and is included in the financial reporting of the Government of Canada. Consolidated SPAs are used principally where the activities are similar in nature to departmental activities and the transactions do not represent liabilities to third parties but, in essence, constitute Government revenues and expenditures.
The CPP is a SPA but is not consolidated as part of the Government of Canada financial statements. It is under joint control of the Government and participating provinces. As administrator, the Government's authority to spend is limited to the balance of the Plan.
The Government Annuities Account is a consolidated SPA and is included in the financial reporting of the Government of Canada. It was established by the Government Annuities Act, and modified by the Government Annuities Improvement Act, which discontinued sales of annuities in 1975. The account is valued on an actuarial basis each year, with the deficit or surplus charged or credited to the Consolidated Revenue Fund.
The Civil Service Insurance Fund is a consolidated SPA and is included in the financial reporting of the Government of Canada. It was established by the Civil Service Insurance Act. Pursuant to subsection 16(3) of the Civil Service Insurance Regulations, the amount of actuarial deficits is transferred from the Consolidated Revenue Fund to the Civil Service Insurance Account in order to balance the assets and liabilities of the program.
Employment Insurance Account
Description
The Employment Insurance (EI) Account was established in the Accounts of Canada by the Employment Insurance Act (EI Act) to record all amounts received or paid out under that Act. The EI Act provides short-term financial relief and other assistance to eligible workers. The program covers all workers in an employer-employee relationship. Self-employed fishers are also included under special regulation of the EI Act. In 2005, 15.4 million Canadians contributed to the Program and 2.5 million received benefits.
Employment Insurance provides:
Income Benefits under Part I of the EI Act provide temporary income support to claimants, including self-employed fishers, while they look for work. This includes work-sharing agreements for temporary work shortages to allow employees to receive pro-rated EI benefits while working for part of a week, thus avoiding layoffs. EI also provides four types of special benefits: maternity benefits, payable to biological mothers for work missed as a result of pregnancy and childbirth; parental benefits, payable to both biological and adoptive parents for the purpose of caring for a new born or adopted child; sickness benefits, payable to claimants who are too ill to work; and compassionate care benefits, payable to claimants who provide care to a gravely ill or dying family member.
Employment Benefits under Part II of the EI Act through a set of Employment Benefits and Support Measures that can be tailored to meet the needs of individuals and local circumstances. The Government of Canada has Labour Market Development Agreements with the governments of most provinces and territories. These enable provincial and territorial governments to assume direct responsibility for the design and delivery of these benefits or to take part in co-management arrangements with the federal government.
Employers and workers pay all costs associated with EI through premiums. Benefits and administrative costs are paid out of the Consolidated Revenue Fund and charged to the EI Account. A surplus in the Account generates interest at a rate established by the Minister of Finance, which is currently set at 90% of the monthly average of the three-month Treasury bill rate.
Financial Summary
The premium rate for 2006 was set on a breakeven basis. However, as the economy is expected to be better than that was expected at the time the 2006 premium rate was set, in 2006-2007, premium revenue is now expected to be about $400 million higher than the benefits and administrative costs. Total revenues, including interest earned, are expected to exceed total costs by $2.4 billion, which will increase the cumulative surplus to $53.1 billion as of March 31, 2007. The changes in benefits and premium are explained as follows:
- Benefits are expected to increase by 1.1% to $14.6 billion. This is due to a 3.4% expected increase in the average weekly benefits offset by a 3.0% expected decrease in the number of beneficiaries and the decrease in maternity and parental benefits when the Quebec Parental Insurance Plan (QPIP) is fully implemented.
- Premium revenue is expected to decrease to $16.6 billion, as the reduction in premium rates to 1.87% in 2006 offset the rising employment and earnings. The decrease in premium revenue includes a full year's premium reduction under QPIP.
The following chart summarizes trends in total costs and revenues of the EI Account from 1994-1995 to 2006-2007.
| 1994-1995 | 1995-1996 | 1996-1997 | 1997-1998 | 1998-1999 | 1999-2000 | 2000-2001 | 2001-2002 | 2002-2003 | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 | |
| Total Costs | 16.51 | 15.02 | 13.81 | 13.21 | 13.24 | 12.74 | 12.79 | 15.24 | 16.10 | 16.65 | 16.38 | 16.11 | 16.26 |
| Total Revenues | 19.43 | 18.94 | 20.48 | 19.55 | 20.57 | 19.97 | 21.22 | 19.15 | 19.37 | 19.07 | 18.70 | 18.32 | 18.64 |
The table below summarizes the financial results for the EI Account from 2003-2004 to 2006-2007.
| Actual | Forecast | Planned Spending | ||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Expenditures | ||||
| Benefits | 15,070 | 14,748 | 14,418 | 14,580 |
| Administrative Costs | 1,521 | 1,542 | 1,638 | 1,624 |
| Doubtful Accounts | 60 | 95 | 56 | 57 |
| Total Costs | 16,651 | 16,385 | 16,112 | 16,261 |
| Revenues | ||||
| Premium Revenue | 17,900 | 17,655 | 16,917 | 16,621 |
| Penalties | 47 | 51 | 50 | 54 |
| Interest | 1,125 | 995 | 1,352 | 1,968 |
| Total Revenues | 19,072 | 18,701 | 18,319 | 18,643 |
| Surplus | ||||
| Current Year | 2,421 | 2,316 | 2,207 | 2,382 |
| Cumulative | 46,233 | 48,549 | 50,756 | 53,139 |
| Notes: The EI premiums reported in the summary financial statements of the Government of Canada exclude the premium contributions made by the Government of Canada as an employer. Totals may not add due to rounding. | ||||
Benefit Payments
Benefits in 2006-2007 are expected to reach $14.6 billion, consisting of 12.4 billion for Income Benefits and $2.1 billion for Employment Benefits and Support Measures.
Income Benefits
EI Income Benefits include regular, special, work-sharing and fishers' benefits.25 Major aspects of these benefits are as follows:
Regular Benefits
Amount of Work Required to Qualify for Benefits
Most claimants require 420 to 700 hours of work during their qualifying period, regardless of whether from full-time or part-time work, or whether the work is with one employer or several. The exact number of hours required is called the "variable entrance requirement". It is determined by the rate of unemployment in a claimant's region at the time he or she applies for benefits. In general, the higher the rate of unemployment, the fewer hours of work required to qualify.
People who have just entered the labour market ("new entrants") and those returning to the labour force after an absence ("re-entrants") require 910 hours of work. However, if they worked at least 490 hours in the preceding 12 months, or received at least one week of maternity or parental benefits in the four years before that, they will be eligible under normal rules the following year.
Determining the Benefit Rate and Entitlement
Claimants for regular benefits may receive benefits for 14 to 45 weeks, depending upon their hours of insurable employment and the regional unemployment rate.
Claimants' weekly benefits are 55% of their average insurable earnings during the last 26 weeks. The average insurable earnings are based on the actual weeks of work, subject to a minimum divisor that is tied to the regional rate of unemployment.
Claimants with a combined family income of less than $25,921 and who qualify for the Canada Child Tax Benefit (CCTB) receive a Family Supplement based upon:
- the net family income
- the number of dependent children
- the ages of those dependent children
The benefit rate for claimants who receive a Family Supplement can be increased to a maximum of 80% of the claimant's average weekly insurable earnings, up to the maximum weekly benefit of $413.
Pilot Projects
The Extended EI Benefits Pilot project increases regular benefit entitlement up to 5 additional weeks in high unemployment regions, to a maximum entitlement of 45 weeks of benefits, for claims established in the period beginning on June 11, 2006 and ending in the week of December 9, 2007. This replaces a previous pilot project in high unemployment regions which also provided five additional weeks of benefits for claims established in the period beginning on June 6, 2004 and ending in the week of June 4, 2006. This is an interim measure and the Government's priority continues to be to help Canadians participate in the labour market.
Three pilot projects have been implemented in regions of high unemployment (10 percent or higher). Effective October 30, 2005, in affected regions, EI benefits will be calculated based on the "best 14 weeks" of earnings over the 52 weeks preceding a claim for benefits. Effective December 11, 2005, individuals new to the labour market or returning after an extended absence can qualify for EI regular benefits with a minimum of 840 hours worked (rather than 910), and the working-while-on-claim threshold for calculating benefits will be increased to $75 or 40% of weekly benefits (up from $50 or 25% of weekly benefits).
Special Benefits
Claims for sickness, maternity, parental, or compassionate care benefits require 600 hours of work, and are not affected by the new entrant/re-entrant rule. All claimants may receive sickness benefits for up to 15 weeks. Parental benefits of 35 weeks are available for biological and adoptive parents in addition to the 15 weeks of maternity benefits available to biological mothers. Compassionate care benefits of 6 weeks are available for those providing care for a gravely ill or dying family member (a sibling, grandparent, grandchild, in-law, aunt, uncle, niece, nephew, foster parent, ward, guardian, or a gravely ill person who considers the claimant to be like a family member).
On March 1, 2005 the Government of Canada and the Government of Quebec signed the final agreement on Quebec Parental Insurance Plan. Effective January 2006, Quebec residents will claim maternity and parental benefits from the Quebec provincial government. All benefits paid by the federal government for maternity and parental benefits in Quebec for claims established before 2006 but paid after January 2006 will be reimbursed by the Quebec government.
Work Sharing
Claimants may receive benefits while on work-sharing agreements. These agreements between HRSDC, employees and employers attempt to avoid temporary layoffs by combining partial EI benefits with reduced workweeks. They normally last from 6 to 26 weeks.
Fishers' Benefits
Fisher claims have duration and benefit rates that depend on the earnings from fishing and the regional rate of unemployment. All fisher claims have a 31-week maximum qualifying period and a maximum entitlement of 26 weeks of benefits. These can be claimed from October 1st to June 15th for summer fishers' benefits and April 1st to December 15th for winter fishers' benefits. Fishers can file claims for both seasons. Benefit rates for fisher claims are determined by a minimum divisor that depends on the regional rate of unemployment.
Benefit Repayments
When the net annual income of EI claimants exceeds 1.25 times the maximum yearly insurable earnings ("the repayment threshold"), they have to repay the lesser of 30% ("the repayment rate") of the net excess income or 30% of the amount of total benefits other than special benefits paid. In addition, first-time claimants of regular or fishing benefits are exempt from benefit repayment.
| Actual | Forecast | Planned Spending | ||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Income Benefits | ||||
| Regular | 9,122 | 8,669 | 8,411 | 8,832 |
| Sickness | 754 | 797 | 835 | 870 |
| Maternity | 909 | 925 | 903 | 765 |
| Parental | 2,015 | 2,112 | 2,064 | 1,760 |
| Compassionate Care | 2 | 7 | 8 | 10 |
| Fishing | 337 | 313 | 285 | 310 |
| Work Sharing | 27 | 11 | 13 | 20 |
| Benefit Repayments | (114) | (153) | (117) | (125) |
| Total Income Benefits | 13,052 | 12,681 | 12,402 | 12,442 |
| Note: Totals may not add due to rounding. | ||||
| Actual | Forecast | Planned Spending | % | ||
| 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 | Change | |
| Income Benefits ($ million) | 13,052 | 12,681 | 12,402 | 12,442 | 0.3% |
| Average Monthly Beneficiaries (000's | 848 | 819 | 788 | 764 | (3.0%) |
| Benefit Rate ($/week) | 295 | 299 | 302 | 312 | 3.4% |
Employment Benefits and Support Measures
The Employment Benefits include Skills Development, Job Creation Partnerships, Self-Employment and Targeted Wage Subsidies.
The Support Measures include Employment Assistance Services, Labour Market Partnerships and Research and Innovation.
Part II of the EI Act also authorizes the federal government to make payments to the governments of the provinces and territories for implementing programs similar to Employment Benefits and Support Measures. The planned federal contribution to provinces and territories (i.e., New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, Northwest Territories and Nunavut) under Labour Market Development Agreements is $889 million for 2006-2007. This $889 million does not reflect the amount to be transferred to Ontario in 2006-2007, as the transfer and its associated administrative costs are being negotiated for implementation on January 1, 2007.
The total planned spending for Employment Benefits and Support Measures in 2006-2007 is set at $2,138 million or 0.5% of the total estimated insurable earnings of $401,239 million. This is below the 0.8% ceiling set under Section 78 of the EI Act.
| Actual | Forecast | Planned Spendinga | ||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Job Creation Partnerships | 74 | 71 | 54 | |
| Skills Development | 355 | 429 | 410 | |
| Self-Employment | 96 | 115 | 107 | |
| Targeted Wage Subsidies | 45 | 48 | 42 | |
| Employment Assistance | 334 | 324 | 322 | |
| Labour Market Partnerships | 192 | 173 | 177 | |
| Research & Innovation | 27 | 17 | 15 | |
| Total HRSDC Programs | 1,124 | 1,176 | 1,127 | 1,249 |
| Transfers to Provinces and Territories | 894 | 891 | 889 | 889 |
| Total | 2,018 | 2,067 | 2,016 | 2,138 |
| a. Breakdown by component is not available, as spending will be guided by local labour market needs. Breakdown by provinces/territories is provided in the EI Part II - 2006-2007 Expenditure Plan. Note: Totals may not add due to rounding. | ||||
Premiums
Premiums are collected from insured employees and their employers to cover the program costs over a business cycle, based on a yearly premium rate and employees' insurable earnings. The factors affecting the premiums are further explained below:
Premium Rate: Through Budget 2005, the Government of Canada introduced a new permanent rate-setting mechanism and gave the EI Commission the legislative authority to set the EI premium rate. Under the new rate-setting process, the Chief Actuary is required to annually calculate, on a forward-looking basis, the estimated break-even rate for the coming year based on the most current forecast values of the relevant economic variables provided by the Minister of Finance. The forward-looking basis means that surpluses, deficits, and the notional interest credited to the EI Account do not enter into the calculation of the "break-even" premium rate. For 2006, the Commission set the employee rate at 1.87% of insurable earnings, which is a reduction from 2005 rate of 1.95%. The corresponding employer rate will be 2.62%, a reduction from its current level of 2.73%. The 2006 EI rate represents the twelfth consecutive rate reduction since 1994, when the employee rate was 3.07%
| 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
| Premium rate | 3.07 | 3.00 | 2.95 | 2.90 | 2.70 | 2.55 | 2.40 | 2.25 | 2.20 | 2.10 | 1.98 | 1.95 | 1.87 |
Maximum Yearly Insurable Earnings (MYIE): Premiums are paid on all employment earnings of insured employees up to the MYIE. Section 4 of the EI Act provides that the MYIE will be $39,000 until the value of the twelve month weekly average earnings ending in June of the first preceding year times the ratio of the same average to the corresponding average for the second preceding year times 52 and rounded down to the nearest $100 exceeds that threshold.26
Premium Reduction: Employers with qualified wage-loss insurance plans are entitled to premium reductions. They are required to share this reduction with their employees.27
Additionally, with the implementation of QPIP, the premium rate for employees in Quebec will be reduced to 1.53% in 2006 and the corresponding rate for employers is 2.14%. It is estimated that in 2006 the amount of premiums collected in Quebec will be $794 million less.
Premium Refund:
- Workers with annual earnings of $2,000 or less can receive a refund of their EI premiums through the income tax system.
EI premiums are refunded to employees when their insurable earnings are in excess of the maximum yearly insurable earnings.
| Actual | Forecast | Planned Spending | % | ||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 | Change |
| Fiscal Year Factors | |||||
| Premium Revenue ($ million) | 17,900 | 17,655 | 16,917 | 16,621 | (1.7%) |
| Total Insurable Earnings ($ million) | 372,373 | 384,426 | 393,479 | 401,239 | 2.0% |
| 2003 | 2004 | 2005 | 2006 | ||
| Calendar Year Factors | |||||
| Employee Premium Ratea | |||||
| (% of insurable earnings) | 2.10% | 1.98% | 1.95% | 1.87% | (4.1%) |
| Maximum Insurable Earnings ($) | 39,000 | 39,000 | 39,000 | 39,000 | |
| Premium Reduction ($ million) | (522) | (549) | (566) | (586) | |
| Régime québécois d'assurance parentale | (797) | ||||
| Premium Refunds ($ million) | |||||
| Employee | (170) | (178) | (170) | (164) | |
| Employer (New Hires/Youth Hires) | (19) | ||||
| a. The employers' portion is 1.4 times the employee rate. | |||||
Interest Earned
Section 76 of the EI Act stipulates that the Minister of Finance may authorize the payment of interest on the balance in the Employment Insurance Account in accordance with such terms and conditions and at such rates as the Minister of Finance may establish, and the interest, which is currently set at 90% of the three-month Treasury bill rate, shall be credited to the Employment Insurance Account and charged to the Consolidated Revenue Fund. Interest is calculated monthly, based on the 30-day average of the daily balance in the Account.
Interest is charged on overdue accounts receivable, caused through misrepresentation, in accordance with Treasury Board regulations. The interest rate used in this calculation is the average Bank of Canada discount rate for the previous month plus 3.0%.
| Actual | Forecast | Planned Spending | ||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Sources | ||||
| Account Balance | 1,096 | 968 | 1,324 | 1,934 |
| Accounts Receivable | 29 | 27 | 28 | 34 |
| Total | 1,125 | 995 | 1,352 | 1,968 |
Interest earned is expected to reach $2.0 billion due to the increase in the interest rates as well as a higher cumulative surplus.
Administrative Costs
Section 77 of the EI Act specifies that the costs of administering the Act are to be charged to the EI Account.
The Minister of Human Resources and Social Development is responsible for reporting on the EI Program to Parliament. However, the Canada Customs and Revenue Agency (CCRA), which collects premiums and benefits repayments and provides decisions on insurability under the Act, shares the administration of the Program. The Treasury Board Secretariat and the Department of Justice all supply services that support management and delivery of programs under the EI Act.
The administrative costs that provincial and territorial governments incur to administer Employment Benefits and Support Measures under the Labour Market Development Agreements are also charged to the EI Account.
| Actual | Forecast | Planned Spending | ||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Federal | ||||
| EI Income Benefits | 540 | 573 | ||
| Policy, Program and Service Delivery | 527 | 458 | ||
| Corporate Services | 272 | 295 | ||
| Employment Programs | 36 | 57 | ||
| Workplace Skills | 44 | 59 | ||
| Learning | 17 | 16 | ||
| Subtotal | 1,436 | 1,458 | 1,553 | 1,532 |
| Provincial | 92 | 92 | 92 | 100 |
| Recovery | (6) | (8) | (7) | (8) |
| Total | 1,521 | 1,542 | 1,638 | 1,624 |
| Note: Totals may not add due to rounding. | ||||
The $1,614 million EI administrative costs are the initial approved resources for 2006-2007, which is slightly less than the final spending authority for 2005 - 2006.
Canada Pension Plan
Description
The Canada Pension Plan (CPP) is a contributory, earnings-related social insurance program. It is a joint federal-provincial plan that operates throughout Canada, except in Quebec, which has its own comparable plan. The CPP provides for a variety of benefits based on life changes. Best known for its retirement pensions, the CPP also provides benefits for surviving partners and children of CPP contributors, people with disabilities and their children, and a one-time maximum benefit of up to $2,500 in the event of the death of a contributor.
As a contributory plan, contributors are employees or self-employed persons generally between the ages of 18 and 70, who earn at least a minimum amount ($3,500) during a calendar year. Benefits are calculated based on how much and for how long a contributor has paid into the CPP. Benefits are not paid automatically-everyone must apply and provide proof of eligibility.
Approximately 12 million Canadians over the age of 18 currently contribute annually to the Plan and approximately 4 million Canadians will receive benefits during 2006-2007.
Benefit Payments
Retirement Pensions: Contributors may begin receiving CPP retirement pensions as early as age 60 or delay receipt until age 70. Applicants who are between 60 and 65 must have stopped working or earn below a specified level when they begin to receive the retirement pension. Once that person starts receiving the CPP pension, he/she can earn any amount without affecting the CPP pension. However, contributions are not made to the CPP on any future earnings. Contributors over age 65 need not have stopped working to qualify.
The amount of each contributor's pension depends on how much and for how long he/she has contributed and at what age he/she begins to draw the benefits. Pensions are adjusted by 0.5 percent for each month before or after age 65 from the time a person begins to receive his/her pension. Contributors who begin receiving a retirement pension at age 60 will receive 70% of the amount that would otherwise be payable at age 65, while those who delay receiving a pension until age 70 will receive 130% of the amount payable at age 65.
Spouses and common-law partners who are at least 60 years of age can share their retirement benefits earned during the period of cohabitation as long as they remain together. This may result in tax savings. If only one spouse is a CPP contributor, the pension can be shared between the two spouses. The overall benefits paid do not increase or decrease with pension sharing.
Disability Benefits: Disability benefits are payable to contributors who meet the minimum contributory requirements and whose disability is "severe and prolonged", as defined in the legislation. Such a disability would prevent them from working regularly at any job in a substantially gainful manner for a prolonged period of time. In order to ensure that benefits are only paid to eligible beneficiaries, periodic reassessments are carried out. Support is also provided to clients who try to return to regular gainful employment. Children of CPP disability beneficiaries are also eligible for a flat rate monthly benefit up to the age of 18, or up to age 25 if attending school full-time. As of February 2006, there were just over 299,000 beneficiaries and 88,000 children receiving monthly benefits.
Survivor's Benefits: A contributor's surviving spouse/common-law partner may be eligible for a monthly benefit if the contributor has contributed for a minimum period and, if at the time of the contributor's death, the spouse/common-law partner was at least 35 years old or was under age 35 and either had dependent children or was disabled. Payments continue in the event that the surviving spouse/common-law partner remarries. Monthly benefits are also payable on behalf of the children of CPP contributors who die. The amount is a flat rate and is payable until the child reaches age 18, or up to age 25 if he or she attends school full-time. A lump-sum benefit is also available to the estate of the deceased contributor provided the minimum contributory requirements have been met.
Determining the Benefit Rate
CPP benefits are largely related to earnings. Benefits are adjusted in January of each year to reflect increases in the average cost of living, as measured by the Consumer Price Index. Benefits such as children's benefits are not based on earnings; they are a fixed amount. Disability and survivor benefits contain a fixed-rate or flat rate portion in addition to an earnings-related portion.
| Actual | Forecast | Planned Spending | ||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Retirement pensions | 15,852 | 16,795 | 17,664 | 18,601 |
| Disability benefits | ||||
| Disability pensions | 2,844 | 2,921 | 3,105 | 3,203 |
| Benefits to children of disabled contributors | 257 | 257 | 268 | 273 |
| Disability benefits total | 3,101 | 3,178 | 3,373 | 3,476 |
| Survivor benefits | ||||
| Surviving spouse or common law partner's benefits | 3,187 | 3,327 | 3,459 | 3,565 |
| Orphans' benefits | 213 | 215 | 218 | 223 |
| Death benefits | 254 | 248 | 263 | 267 |
| Survivor benefits total | 3,654 | 3,790 | 3,940 | 4,055 |
| TOTAL | 22,607 | 23,763 | 24,977 | 26,132 |
Administrative Costs
Human Resources and Social Development Canada, Finance Canada, the Canada Revenue Agency, Public Works and Government Services Canada, the Royal Canadian Mounted Police and the Office of the Superintendent of Financial Institutions supply services that support the management and delivery of the CPP and its funds.
Costs incurred by these departments and agencies in administering the Plan are recoverable from the Account based on the costing principles approved by Treasury Board. Essentially, those principles are that costs must be incurred because of CPP responsibilities and must be traceable. Administrative expenses for 2006-2007 are estimated at $397.8 million, representing a decrease of 2.5% from the forecast for 2005-2006.
Benefits delivery staff and processes are extremely efficient in getting benefits into the hands of CPP contributors. In 2006-2007, the total cost for administering and delivering CPP benefits is approximately 1.5% of the total forecasted benefit payments.
| Actual | Forecast | Planned Spending | ||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Human Resources Development Canada | ||||
| Plan administration, operations, records, and accommodation | 266.4 | - | ||
| Social Development Canada | ||||
| Plan administration, operations, records, and accommodation | 224.0 | 240.5 | 232.0 | |
| Human Resources and Skills Development Canada | ||||
| In-person services for applicants and beneficiaries | 6.6 | 15.3 | 14.7 | |
| EI Account - Refunding of EI Account in relation to assignment of Social Insurance numbers and maintenance of the central index | 1.7 | 2.7 | 3.3 | 3.0 |
| Treasury Board Secretariat | ||||
| Insurance premiums and recoverable contributions to the Employee Benefit Plan | 40.8 | 39.0 | 30.1 | 27.8 |
| Public Works and Government Services | ||||
| Cheque issue, EDP services | 14.7 | 15.8 | 16.1 | 16.2 |
| Royal Canadian Mounted Police | ||||
| Investigation of contraventions | 0.3 | 0.3 | ||
| Canada Revenue Agency | ||||
| Collection of contributions | 85.3 | 96.5 | 100.8 | 101.7 |
| Office of the Superintendent of Financial Institutions | ||||
| Actuarial services | 1.0 | 1.3 | 1.4 | 1.7 |
| Finance | ||||
| Investment services | 0.4 | 0.4 | 0.4 | 0.4 |
| TOTAL | 410.3 | 386.4 | 408.3 | 397.8 |
Revenues
The CPP is financed through mandatory contributions from employees, employers and self-employed persons, as well as from investment income. Contributions are paid on the portion of a person's earnings that falls between a specified minimum (the Year's Basic Exemption) and maximum (the Year's Maximum Pensionable Earnings) amounts. The minimum remains constant at $3,500, while the maximum amount is linked to the average Canadian industrial wage and is adjusted annually. No contributions are made once a contributor begins to receive a CPP retirement pension, while receiving a disability pension or reaches the age of 70. Disbursements include the payment of CPP benefits and administrative expenditures associated with managing the program.
When it was introduced in 1966, the CPP was designed as a pay-as-you-go plan, with a small reserve. This meant that the benefits for one generation would be paid largely from the contributions of later generations. However, demographic and economic developments and changes to benefits in the 30 years that followed resulted in significantly higher costs. It became clear that to continue to finance the program on a pay-as-you-go basis would have meant imposing a high financial burden on Canadians in the work force during those years. Plan administrators chose instead to change the funding approach of the Plan to a hybrid of pay-as-you-go and full-funding.
In 1998, the federal and provincial governments introduced "steady-state" financing. Under steady-state financing, the contribution rate was increased incrementally, from 5.6% in 1996, to 9.9% in 2003, and remains at that rate. The Office of the Superintendent of Financial Institutions' 21st Actuarial Report on the sustainability of the Canada Pension Plan states that the actual steady-state contribution rate is 9.8% of contributory earnings. This rate represents the lowest rate sufficient to sustain the Plan without further increase and is 0.1% lower than the legislated 9.9% contribution rate. With the 9.9% legislated contribution rate, the assets are expected to increase significantly over the next 17 years, with the ratio of assets to the following year's expenditures growing from 3.1 in 2004 to 5.6 by 2021.28
This approach will generate a level of contributions between 2001 and 2020 that exceeds the benefits paid out every year during that period. Funds not immediately required to pay benefits are transferred to the CPP Investment Board for investment in financial markets. Over time, this will create a large enough reserve to help pay the costs that are expected as more and more baby-boomers retire.
Adoption of this diversified funding approach has made the Canadian retirement income system less vulnerable to changes in economic and demographic conditions and a leading edge example of public pension plan management in the world.
Investment Income: Income is earned on the investments in equities, real estate and money market securities as well as interest earned by bonds.
Financial Accountability
The CPP and its resources are divided among three components:
- The CPP Account was established to record the contributions, interest, pensions and benefits and administrative expenditures of the Plan. In September 2004, the Operating Reserve29 in the CPP Account began to be transferred to the CPP Investment Board and was completed in August 2005. As well, the CPP Investment Board receives weekly forecasts generated by the CPP Accounting personnel and any excess funds not needed to pay for CPP benefits and expenses.
- The CPP Investment Fund was established to record investments in the securities of the provinces, territories and Canada. Following the adoption of Bill C-3 in April 2004, the CPP Investment Fund will gradually be transferred to the CPP Investment Board over a period of 3 years. The transfer of the CPP Investment Fund started May 1, 2004.
- The Canada Pension Plan Investment Board is an arm's length Crown Corporation established by an Act of Parliament in December 1997. It began operations in March 1999 to help the CPP achieve steady-state funding by investing funds not required by the CPP to pay current pensions and earning investment returns on funds transferred from the CPP Account.30 The Board is accountable to the public and governments through regular reports. It is subject to broadly the same investment rules as other pension funds in Canada.
Financial Summary
Benefit payments are expected to reach $26.1 billion in 2006-2007, an increase of $1.2 billion or 4.6% over 2005-2006. This increase reflects forecasts of client population and average benefit payments. In 2006-2007, it is expected that there will be a net increase in client population of 3.0% and a net increase in average benefit payments of 1.7%.
The table below summarizes the financial results for the CPP from 2003-2004 to 2006-2007. In 2002-2003, the Government of Canada changed its basis of accounting from the modified accrual accounting to the full accrual basis of accounting. This change in accounting policy has been applied retroactively and the financial statements have been restated accordingly.
As well, the evaluation of the provincial, territorial and federal bonds was changed from cost to fair value during 2003-2004. The change in accounting policy has been applied retroactively and the financial statements have been restated to reflect this.
The CPP is expected to have an increase of almost $18 billion, bringing the cumulative balance to more than $106 billion by March 31, 2007. At present, the CPP has a fund equal to over 3.5 times the benefits and this is expected to grow to about 5.6 times by 2021.
The following figures summarize trends in total revenues and expenditures of the Account and its status from 2003-2004 to 2006-2007.
| 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 | |
| Total Expenditures | 23.0 | 24.1 | 25.4 | 26.5 |
| Total Revenues | 38.3 | 35.0 | 43.3 | 31.5 |
| Actual | Forecast | Planned Spending | ||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Revenue | ||||
| Contributions | 28,029 | 28,941 | 30,305 | 30,972 |
| Investment Income | ||||
| Canada Pension Plan | 2,682 | 2,070 | 1,093 | 514 |
| CPP Investment Board1 | 7,209 | 4,983 | 12,139 | N/A |
| CPP Investment Fund2 | 357 | (945) | (254) | N/A |
| Total Investment Income | 10,248 | 6,108 | 12,978 | 514 |
| Total Revenue | 38,277 | 35,049 | 43,283 | 31,486 |
| Expenditures | ||||
| Benefit payments | 22,607 | 23,763 | 24,977 | 26,132 |
| Administrative expenses | 410 | 386 | 408 | 398 |
| Total Expenditures | 23,017 | 24,149 | 25,385 | 26,530 |
| Increase | 15,260 | 10,900 | 17,898 | 4,955 |
| Year-end balances | 72,511 | 83,411 | 101,309 | 106,264 |
| 1. Canada Pension Plan Investment Board actual amounts are based on their audited financial statements. The CPP Investment Board invests mainly in equities. The investment income is determined mainly by the change in fair values of these investments. It is difficult to forecast a future fair value therefore the investment income for the year 2006-2007 is not yet available. 2. The Canada Pension Plan Investment Fund is made up of provincial, territorial and government bonds. Since March 31, 2004, these are valued at fair value. The revenue of the Fund is made up of the interest from the bonds as well as the change in fair values of these investments. The interest income from the Investment Fund is presented under "Canada Pension Plan" of this section. It is difficult to forecast a future fair value therefore the investment income for the year 2006-2007 is not yet available. | ||||
Long-term Forecast
The CPP legislation requires a schedule of contribution rates with a review every three years by the federal and provincial finance ministers. The review determines whether any adjustments to the schedule are necessary. If so, the adjustments are implemented through legislation or agreement among finance ministers, or automatically under a formula that ensures that the contribution rate will be sufficient to sustain the Plan in the face of an aging population. Amendments to the rate schedule or the automatic regulation require the approval of at least two thirds of the provinces with at least two thirds of the population of all the provinces.
The following table shows the forecast of revenues and expenditures affecting the CPP for the period between December 31, 2005 and December 31, 2030, based on the Office of the Superintendent of Financial Institutions' Actuarial Report (21st) on the Canada Pension Plan as at December 31, 2003. The Assets/Expenditures Ratio reflects the size of the year-end assets relative to the expenditures.
| Year | Contribution Rate | Contributions | Investment Earnings | Expenditures | Assets at Dec. 31 | Assets/ Expenditure ratio |
| % | $ millions | |||||
| 2010 | 9.90 | 36,128 | 8,982 | 31,868 | 146,795 | 4.37 |
| 2015 | 9.90 | 45,579 | 14,635 | 42,022 | 226,815 | 5.09 |
| 2020 | 9.90 | 57,537 | 21,497 | 56,253 | 332,116 | 5.57 |
| 2025 | 9.90 | 71,145 | 29,177 | 74,887 | 454,613 | 5.75 |
| 2030 | 9.90 | 88,011 | 37,958 | 97,015 | 591,404 | 5.81 |
| Source: 21st Actuarial Report from the Office of the Superintendent of Financial Institutions Canada | ||||||
This account was established by the Government Annuities Act, and modified by the Government Annuities Improvement Act, which discontinued sales of annuities in 1975. The account is valued on an actuarial basis each year, with the deficit charged or surplus credited to the Consolidated Revenue Fund.
The purpose of the Government Annuities Act was to assist Canadians to provide for their later years, by the purchase of Government annuities. The Government Annuities Improvement Act increased the rate of return and flexibility of Government annuity contracts.
Income consists of premiums received, funds reclaimed from the Consolidated Revenue Fund for previously untraceable annuitants, earned interest and any transfer needed to cover the actuarial deficit. Payments and other charges represent matured annuities, the commuted value of death benefits, premium refunds and withdrawals, and actuarial surpluses and unclaimed items transferred to non-tax revenues. The amounts of unclaimed annuities, related to untraceable annuitants, are transferred to non-tax revenues.
As of March 31, 2006, there were 2,400 outstanding deferred annuities, the last of which will come into payment around 2030.
| Actual | Planned Spending | |||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Expenditures | ||||
| Actuarial Liabilities - Balance at beginning of year | 437.6 | 405.8 | 377.2 | 347.2 |
| Income | 28.5 | 26.3 | 24.5 | 24.3 |
| Payments and other charges | 57.8 | 54.6 | 51.0 | 47.9 |
| Excess of Payments and other charges over income for the year | 29.3 | 28.3 | 26.5 | 23.6 |
| Actuarial Surplus | 2.5 | 0.3 | 3.5 | 1.6 |
| Actuarial Liabilities - Balance at year-end | 405.8 | 377.2 | 347.2 | 321.9 |
This account was established by the Civil Service Insurance Act, under which the Minister of Finance could contract with permanent employees in the public service for the payment of certain death benefits. No new contracts have been entered into since 1954 when the Supplementary Death Benefit Plan for the Public Service and Canadian Forces was introduced as part of the Public Service Superannuation Act and the Canadian Forces Superannuation Act, respectively. As of April 1997, the Department of Human Resources Development assumed the responsibility for the administration and the actuarial valuation of the Civil Service Insurance Act.
The number of policies in force as of March 31, 2006 was 1,424 and the average age of the policy holders was 87.0 years. Receipts and other credits consist of premiums and an amount (charged to expenditures) which is transferred from the Consolidated Revenue Fund in order to balance the assets and actuarial liabilities of the program. Payments and other charges consist of death benefits, settlement annuities paid to beneficiaries and premium refunds.
Pursuant to subsection 16(3) of the Civil Service Insurance Regulations, any deficit will be credited to the Account from the Consolidated Revenue Fund.
| Actual | Planned Spending | |||
| (millions of dollars) | 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 |
| Revenue | ||||
| Opening Balance | 7.5 | 7.1 | 6.6 | 6.3 |
| Receipts and other credits | 0.2 | 0.0 | 0.1 | 0.1 |
| Payments and other charges | 0.6 | 0.5 | 0.4 | 0.4 |
| Excess of payments and other charges over income for the year | 0.4 | 0.5 | 0.3 | 0.3 |
| Closing Balance | 7.1 | 6.6 | 6.3 | 6.0 |
Employment Insurance Part II - 2006-2007 Expenditure Plan
Background
Part II of the Employment Insurance Act (EI Act) commits the federal government to work in concert with provinces and territories in designing and implementing active employment programs that would be more effective in helping unemployed Canadians integrate into the labour market. These programs are called Employment Benefits and Support Measures (EBSM).
In accordance with the Government of Canada's 1996 offer to provinces and territories to enter into bilateral partnerships on labour market activities, Labour Market Development Agreements (LMDAs) have been concluded with all provinces and territories. Most recently, in November of 2005, the Government of Canada entered into a LMDA with the Government of Ontario; it will come into effect on January 1st, 2007.
The LMDAs involve two types of arrangements:
- Co-management agreements where Human Resources and Skills Development Canada (HRSDC), formerly Human Resources Development Canada, and the province or territory jointly assume responsibility for the planning and design of EBSM, while HRSDC, through Service Canada continues to deliver programs and services through its service delivery network. Such agreements have been concluded with Newfoundland and Labrador, Prince Edward Island, British Columbia and the Yukon. There is also a strategic partnership agreement that is a variation of co-management in Nova Scotia.
- Transfer agreements where the province or territory assumes responsibility for the design and delivery of active employment programs similar to EBSM. Such agreements have been concluded with New Brunswick, Quebec, Manitoba, Saskatchewan, Alberta, the Northwest Territories and Nunavut.
- HRSDC, through Service Canada, delivers EBSM in Ontario until the Canada-Ontario transfer LMDA comes into effect, on January 1st, 2007.
In addition to locally and regionally delivered EBSM and similar programs, pan-Canadian activities that are national or multi-regional in scope or purpose are delivered by HRSDC. Pan-Canadian activities also include programming similar to EBSM delivered by Aboriginal organizations under Aboriginal Human Resources Development Agreements.
Employment Benefits and Support Measures
The five employment benefits are:
- Targeted Wage Subsidies to encourage employers to hire individuals who they would not normally hire in the absence of a subsidy.
- Self-Employment to help individuals to create jobs for themselves by starting a business.
- Job Creation Partnerships to provide individuals with opportunities through which they can gain work experience which leads to on-going employment.
- Skills Development to help individuals to obtain skills for employment, ranging from basic to advanced skills through direct assistance to individuals, and, where applicable, contributions to provinces/territories or provincially/territorially funded training institutions to cover costs not included in tuition fees.
- Targeted Earnings Supplements to encourage individuals to accept employment by offering them financial incentives.
It should be noted that of the employment benefits listed above, Targeted Earnings Supplements has not yet been implemented.
Eligibility to receive assistance under the employment benefits extends to persons who are insured participants as defined in Section 58 of the EI Act i.e., active claimants and former claimants (individuals who have had an EI claim that ended in the past three years or those who received maternity or parental benefits in the past five years, after which they left the labour market to care for their children).
Part II of the legislation also authorizes the establishment of support measures in support of the National Employment Service. The three measures are:
- Employment Assistance Services to assist organizations in the provision of employment services to unemployed persons.
- Labour Market Partnerships to encourage and support employers, employee and/or employer associations and communities to improve their capacity for dealing with human resource requirements and implementing labour force adjustments.
- Research and Innovation to support activities which identify better ways of helping persons prepare for or keep employment and be productive participants in the labour force.
Financial Data
| (millions of dollars) | Base | Re-Investment | Total Plan |
| Newfoundland and Labrador | 58.8 | 73.1 | 131.9 |
| Nova Scotia | 50.7 | 30.3 | 81.0 |
| New Brunswick | 50.2 | 42.1 | 92.3 |
| Prince Edward Island | 16.4 | 10.0 | 26.5 |
| Quebec | 347.7 | 248.1 | 595.8 |
| Ontario | 342.6 | 184.1 | 526.7 |
| Manitoba | 36.8 | 10.2 | 47.0 |
| Saskatchewan | 29.1 | 9.9 | 39.0 |
| Alberta | 72.9 | 35.9 | 108.9 |
| Northwest Territories | 1.9 | 1.6 | 3.4 |
| Nunavut | 1.8 | 1.0 | 2.8 |
| British Columbia | 139.1 | 151.7 | 290.9 |
| Yukon | 1.9 | 2.0 | 3.9 |
| 1,150.0 | 800.0 | 1,950.0 | |
| Pan-Canadian Responsibilitiesa | 187.9 | 0.0 | 187.9 |
| Funds available for Employment Benefits and Support Measures | 1,337.9 | 800.0 | 2,137.9 |
| a. Funds earmarked for Pan-Canadian priorities, such as Aboriginal programming, sectoral and innovations projects.
The amount is net of $12.8 million funds permanently converted to operating costs and of resources identified in the Plan as part of Government Wide Reallocation exercise.
Note: Totals may not add due to rounding. | |||
For 2006-2007, the EI Part II expenditure authority of $2,165.6 million represents 0.54% of total estimated insurable earnings of $401.239 billion. This represents a lower level of expenditures than the 0.8% ceiling imposed under the Act, which is estimated at $3.21 billion in 2006-2007.
Some of the savings from Part I income benefits generated by the EI reform are included in these funds to provide job opportunities and help Canadians get back to work more quickly. The amount of re-investment reached maturity at $800 million in 2000-2001.
Expected Results
An accountability framework has been developed that respects the legal responsibility of the Minister of Human Resources and Skills Development for the EI Account. Key indicators will measure both the short and long term outcomes of EBSM.
It is expected that 425,000 active and former claimants will be assisted in 2006-2007. These estimates may change, depending on labour market conditions and agreements achieved with provinces and territories.
| Clients Employed/Self-Employed | Unpaid Benefits | Active Claimants Served | |
| Targeted Results 2004-20052 | 231,234 | $863.0M | 442 549 |
| Actual Results 2004-05 | 214,220 | $855.2M3 | 425,0334 |
| Targeted Results 2005-065 | 223,831 | $863.6M | 407,472 |
| Expected Results 2006-07 | 217,0006 | $850.0M | 425,0007 |
| 1. Exclusive of Employment Information Services. This table includes Aboriginal pan-Canadian EBSM numbers which were not reported in this annex of the EI Expenditure Plan (Part II) for 2005-2006. 2. The targeted results for Clients Employed and Unpaid Benefits for 2004-2005 and 2005-2006 are the totals as submitted by the regions, provinces and territories. "Clients served" includes Active EI claimants from all regions/provinces/territories, plus Former EI claimants from Quebec. The Quebec agreement requires that the province report on Active and Former EI claimants, as "Clients served." 3. Represents one count of unpaid benefits per client, to avoid the double counting of unpaid benefits of clients who participated in both Regular and Aboriginal pan-Canadian EBSM. 4. The Regular EBSM clients served (409,960) includes Active EI claimants from all regions, plus Former claimants from Quebec. The Quebec agreement requires that the province report on Active and Former EI claimants, as "Clients served." It also includes 15,073 Aboriginal pan-Canadian EBSM clients served. 5. Targeted Results 2005-06 are higher than the Anticipated Results 2005-2006 reported in this annex of the EI Expenditure Plan (Part II) for 2005-2006 because of the robust labour market performance during the reporting period and the use of a conservative approach to target setting by some provinces. 6. Includes Regular EBSM (210,000) and the Aboriginal pan-Canadian EBSM (7,000). 7. Includes Regular EBSM (410,000) and the Aboriginal pan-Canadian EBSM (15,000). | |||
Part II of the EI Act which provides for the delivery of EBSMs stipulates that these programs and services be implemented within a framework for evaluating their success. The LMDAs require that the evaluations be designed to occur in phases: formative to occur in the program implementation phase, while summative evaluations occur some time later, once programs are up and running and post-program periods are long enough to determine impacts and effects.
Thirteen formative evaluations have been completed, and summative evaluations are completed or are in final stages of completion in six jurisdictions: British Columbia, Alberta, Nunavut, Quebec, Ontario and Newfoundland & Labrador. In Saskatchewan and New Brunswick, evaluations are advancing, and results are expected in 2006-2007. For Yukon, PEI and Nova Scotia, the evaluations have started but are in early stages, while for Manitoba and NWT; summative evaluations are at the planning stages.
General findings of these studies have been published in the 2005 Employment Insurance Monitoring and Assessment Report.
Consolidated Report on Canada Student Loans
In August 2000, the Canada Student Loans Program (CSLP) was shifted from the risk-shared financing arrangements that had been in place with financial institutions between 1995 and July 2000 to a direct student loan financing plan.31
This meant that the Program had to redesign the delivery mechanism in order to directly finance student loans. In the new arrangement, the Government of Canada provides the necessary funding to students and two service providers have contracts to administer the loans.
Reporting Entity
The entity detailed in this report is the Canada Student Loans Program only and does not include departmental operations related to the delivery of the CSLP. Expenditures figures are primarily statutory in nature, made under the authority of the Canada Student Loans Act and the Canada Student Financial Assistance Act.
Basis of Accounting
The financial figures are prepared in accordance with generally accepted accounting principles and as reflected in the Public Sector Accounting Handbook of the Canadian Institute of Chartered Accountants.
Specific Accounting Policies
Revenues
Two sources of revenue are reported: interest revenue on Direct Loans and recoveries on Guaranteed and Put Back Loans. Government accounting practices require that recoveries from both sources be credited to the government's Consolidated Revenue Fund. They do not appear along with the expenditures in the CSLP accounts, but are reported separately in the financial statements of Human Resources and Social Development Canada (HRSDC) and the government.
- Interest Revenue on Direct Loans - Borrowers are required to pay simple interest on their student loans once they leave full-time studies. At the time they leave school, students have the option of selecting a variable (prime + 2.5%) or fixed (prime + 5%) interest rate. The figures represent the interest accrued on the outstanding balance of the government-owned Direct Loans. Borrowers continue to pay the interest accruing on the guaranteed and risk-shared loans directly to the private lender holding these loans. Effective August 1, 2005, the weekly loan limit increased from $165 per week to $210 per week of study. As more funds will be available to students, total loan disbursements will likely grow, and as a result the interest revenue generated will likely increase.
- Recoveries on Guaranteed Loans - The government reimburses the private lenders for any loans issued prior to August 1, 1995 that go into default (i.e., lenders claim any amount of principal and interest not repaid in full). The figures represent the recovery of principal and interest on these defaulted loans.
- Recoveries on Put-back Loans - Under the risk-shared agreements, the government will purchase from the participating financial institutions any loans issued between August 1, 1995 to July 31, 2000 that are in default of payments for at least 12 months after the period of study, that in aggregate, do not exceed 3% of the average monthly balance of the lender's outstanding student loans in repayments. The amount paid is set at 5% of the value of the loans in question. The figures represent the recovery of principal and interest on these loans.
Canada Study Grants and Canada Access Grants
Canada Study Grants and Canada Access Grants improve access to post-secondary education by providing non-repayable financial assistance to post-secondary students. Four types of Canada Study Grants are available to assist: (1) students with permanent disabilities in order to meet disability-related educational expenses (up to $8,000 annually); (2) students with dependants (up to $3,120 for full-time students and up to $1,920 for part-time students, annually); (3) high-need part-time students (up to $1,200 annually); and (4) women in certain fields of Ph.D. studies (up to $3,000 annually for up to three years). Two Canada Access Grants are available since August 1, 2005, to assist: (1) students from low-income families entering their first year of post-secondary studies (50% of tuition, up to $3,000); and (2) students with permanent disabilities in order to assist with education and living expenses (up to $2,000 annually)32 .
Collection Costs
These amounts represent the cost of using private collection agencies to collect defaulted Canada Student Loans. The loans being collected include: risk-shared and guaranteed loans that have gone into default and for which the government has bought back from the private lender; and Direct Loans issued after July 31, 2000, that are returned to HRSDC by the third party service provider as having defaulted. As of August 1, 2005 the Canada Revenue Agency (CRA) Non Tax Collections Directorate undertook the responsibility for the administration of the collection activities of the guaranteed, risk-shared and direct student loans.
Service Provider Costs
CSLP uses third party service providers to administer loan origination, in-study loan management, post-studies repayment activities and debt management. This item represents the cost associated with these contracted services.
Risk Premium
Risk premium represents part of the remuneration offered to lending institutions participating in the risk-shared program from August 1, 1995 to July 31, 2000. The risk premium represents 5% of the value of loans being consolidated which is calculated and paid at the time students leave studies and go into repayment. In return, the lenders assume the risk associated with non-repayment of these loans.
Put-Back
Subject to the provisions of the contracts with lending institutions, the government will purchase from a lender the student loans that are in default of payment for at least 12 months and that, in aggregate, do not exceed 3% of the average monthly balance of the lender's outstanding student loans in repayments. The amount paid is set at 5% of the value of the loans in question. The figures also include any refund made to participating financial institutions on the recoveries.
Administrative Fees to Provinces and Territories
Pursuant to the Canada Student Financial Assistance Act (CSFA Act), the government has entered into arrangements with nine provinces and one territory to facilitate the administration of the CSLP. They administer the application and needs assessment activities associated with federal student financial assistance and in return they are paid an administrative fee. As of August 1, 2005 administrative fees paid to provinces were increased to improve the compensation for their part in the administration of the CSLP.
In-Study Interest Borrowing Expense
The capital needed to issue the Direct Loans is raised through the Department of Finance's general financing activities. The cost of borrowing this capital is recorded in the Department of Finance's overall financing operations. The figures represent the cost attributed to CSLP in support of Direct Loans while students are considered in study status. Weekly loan limits increased effective August 1, 2005. As more funds will be available to students, total loan disbursements are likely to grow, and as a result the in-study interest borrowing expense will rise.
In Repayment Interest Borrowing Expense
The capital needed to issue the Direct Loans is raised through the Department of Finance's general financing activities. The cost of borrowing this capital is recorded in the Department of Finance's overall financing operations. The figures represent the cost attributed to CSLP in support of Direct Loans while students are in repayment of their Canada Student Loans.
In-Study Interest Subsidy
A central feature of federal student assistance is that student borrowers are not required to pay the interest on their student loans as long as they are in full-time study and, in the case of loans negotiated prior to August 1, 1993, for six months after the completion of studies. Under the guaranteed and risk-shared programs, the government pays the interest to the lending institutions on behalf of the student.
Interest Relief
Assistance may be provided to cover loan interest and suspend payments on the principal of loans in repayment for up to 54 months for borrowers experiencing temporary difficulties repaying their loans. The shift from Guaranteed and Risk-Shared Loans to Direct Loans did not alter interest relief for loans in distress from the borrower's perspective; however, the method of recording associated costs changed. For loans issued prior to August 1, 2000, CSLP compensates lending institutions for lost interest equal to the accrued interest amount on loans under Interest Relief (IR). For loans issued after August 1, 2000, an interest relief expense is recorded to offset the accrued interest on direct loans. Effective August 1, 2005 income thresholds used to determine IR eligibility increased in order to make IR accessible to a greater number of borrowers.
Debt Reduction in Repayment
Debt Reduction in Repayment (DRR) assists borrowers experiencing long-term difficulties repaying their loans. DRR is a federal repayment assistance program through which the Government of Canada reduces a qualifying borrower's outstanding Canada Student Loans principal to an affordable amount after Interest Relief has been exhausted and only after 5 years have passed since the borrower ceased to be a student. As of August 1, 2005, the maximum amount of DRR assistance is $26,000, which is available to eligible borrowers in an initial deduction of up to $10,000, a second deduction of up to $10,000 and a final deduction of up to $6,000. For loans issued prior to August 1, 2000, CSLP pays the lending institutions the amount of student debt principal reduced by the Government of Canada under DRR. For loans issued after August 1, 2000, the Government of Canada forgives a portion of the loan principal.
Claims Paid and Loans Forgiven
From the beginning of the program in 1964 until July 31, 1995, the government fully guaranteed all loans issued to students by private lenders. The government reimburses private lenders for any of these loans that go into default (i.e., subject to specific criteria, lenders may claim any amount of principal and interest not repaid in full, after which the Canada Revenue Agency's (CRA) Collection Services will attempt to recover these amounts).33 The risk-shared arrangements also permitted loans issued from August 1, 1995 to July 31, 2000 to be guaranteed under specific circumstances. This item represents the costs associated with loan guarantees.
Pursuant to the Canada Student Loans Act and the Canada Student Financial Assistance Act, the government incurs the full amount of the unpaid principal plus accrued interest in the event of the death of the borrower or, if the borrower becomes permanently disabled and cannot repay the loan without undue hardship.
Bad Debt Expense
Under Direct Loans, the government owns the loans issued to students and must record them as assets. As a result, generally accepted accounting principles require a provision be made for potential future losses associated with these loans. The provision must be made in the year the loans are issued even though the losses may occur many years later. The figures represent the annual expense against the provisions for Bad Debt and Debt Reduction in Repayment on Direct Loans.
Alternative Payments to Non-participating Provinces and Territories
Provinces and territories may choose not to participate in the CSLP. These provinces and territories receive an alternative payment to assist in the cost of delivering a similar student financial assistance program
Commitments
For the 2006-2007 fiscal year, the expected cash flow for Service Provider contracts is: $94.8million. The current end date for the Service Provider contracts is July 31, 2007.
Consolidated Canada Student Loans Programs - Financial Tables
| (millions of dollars) | Actual | Actual | Planned Spending e | |||
| 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 | 2007-2008 | 2008-2009 | |
| Revenue | ||||||
| Interest Revenue on Direct Loans | 174.3 | 226.6 | 315.7 | 419.8 | 507.0 | 584.2 |
| Recoveries On Guaranteed Loans | 91.3 | 76.2 | 66.8 | 66.6 | 61.9 | 55.1 |
| Recoveries On Put-Back Loans | 9.6 | 11.0 | 13.1 | 17.1 | 20.7 | 24.5 |
| Total Revenue | 275.2 | 313.8 | 395.6 | 503.5 | 589.6 | 663.8 |
| Expenses | ||||||
| Transfer Payments | ||||||
| Canada Study Grants and Canada Access Grants | 66.8 | 64.5 | 129.7 | 119.9 | 123.1 | 127.2 |
| Loan Administration | ||||||
| Collection Costs a | 13.4 | 14.8 | 13.6 | 18.5 | 21.0 | 23.3 |
| Service Bureau Costs | 41.0 | 46.0 | 50.2 | 66.3 | 73.2 | 80.4 |
| Risk Premium | 11.7 | 5.5 | 2.7 | 4.8 | 2.6 | 1.3 |
| Put-Back | 4.3 | 4.2 | 4.3 | 4.4 | 4.3 | 4.4 |
| Administrative Fees to Provinces and Territories | 8.8 | 9.4 | 13.9 | 14.6 | 14.5 | 14.6 |
| Total Loan Administration Expenses | 79.2 | 79.9 | 84.7 | 108.6 | 115.6 | 124.0 |
| Cost of Government Support | ||||||
| Benefits Provided to Students | ||||||
| In-Study Interest Borrowing Expense (Class A) b | 148.6 | 163.8 | 159.3 | 166.5 | 172.9 | 181.7 |
| In Repayment Interest Borrowing Expense (Class B) b | 68.1 | 96.6 | 111.4 | 161.4 | 196.8 | 236.5 |
| In-Study Interest Subsidy (Class A) | 27.4 | 16.1 | 12.1 | 6.6 | 3.5 | 1.7 |
| Interest Relief | 73.8 | 63.2 | 67.2 | 70.7 | 72.6 | 74.8 |
| Debt Reduction in Repayment | 10.7 | 27.1 | 31.4 | 15.2 | 9.9 | 5.7 |
| Claims Paid & Loans Forgiven | 34.8 | 27.7 | 24.8 | 16.5 | 13.7 | 12.1 |
| Bad Debt Expense c | ||||||
| Debt Reduction in Repayment Expense | 11.5 | 11.5 | 13.3 | 13.3 | 13.4 | 13.7 |
| Bad Debt Expense | 193.3 | 456.2 | 297.2 | 322.5 | 343.2 | 368.7 |
| Total Cost of Government Support Expenses | 568.2 | 862.2 | 716.7 | 772.7 | 826.0 | 894.9 |
| Total Expenses | 714.2 | 1,006.6 | 931.1 | 1,001.2 | 1,064.7 | 1,146.1 |
| Net Operating Results | 439.0 | 692.8 | 535.5 | 497.7 | 475.1 | 482.3 |
| Alternative Payments to Non-Participating Province and Territorie | 244.8 | 175.8 | 158.2 | 151.0 | 144.7 | 142.8 |
| Final Operating Results | 683.8 | 868.6 | 693.7 | 648.7 | 619.8 | 625.1 |
| a. These costs are related to Canada Student Direct Loans but reported by the Department of Social Development Canada. b. These costs are related to Canada Student Direct Loans but reported by the Department of Finance. c. This represents the annual expense against the Provisions for Bad Debt and Debt Reduction in Repayment as required under Accrual Accounting. The Bad Debt Expense figure for 2004-2005 includes an adjustment of $257.1 million following the revised Bad Debt Provision Rate published by the Office of the Chief Actuary in the Actuarial Report on the Canada Student Loans Program as at July 31, 2004. This adjustment is retroactive to the beginning of the Direct Loans Regime (2000). d. Starting in 2003-2004, the figures represent the annual expense recorded under the Accrual Accounting as opposed to the actual amount disbursed to the Non-Participating Province and Territories. The actual cash expense for Alternative Payments to Non-Participating Provinces and Territories for 2005-2006 was $ 161.3 M. e. 2006-2007 and ongoing planned speding years exclude CSLP related amounts stemming from the Budget 2006 announcement. | ||||||
| (millions of dollars) | Actual | Actual | Planned Spending e | |||
| 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 | 2007-2008 | 2008-2009 | |
| Revenue | ||||||
| Interest Revenue on Direct Loans | 174.3 | 226.6 | 315.7 | 419.8 | 507.0 | 584.2 |
| Expenses | ||||||
| Transfer Payments | ||||||
| Canada Study Grants and Canada Access Grants | 66.8 | 64.5 | 129.7 | 119.9 | 123.1 | 127.2 |
| Loan Administration | ||||||
| Collection Costs a | 4.1 | 7.0 | 6.9 | 11.3 | 13.7 | 16.2 |
| Service Bureau Costs | 41.0 | 46.0 | 50.2 | 66.3 | 73.2 | 80.4 |
| Administrative Fees to Provinces and Territories | 8.8 | 9.4 | 13.9 | 14.6 | 14.5 | 14.6 |
| Total Loan Administration Expenses | 53.9 | 62.4 | 71.0 | 92.2 | 101.4 | 111.2 |
| Cost of Government Support | ||||||
| Benefits Provided to Students | ||||||
| In-Study Interest Borrowing Expense (Class A) b | 148.6 | 163.8 | 159.3 | 166.5 | 172.9 | 181.7 |
| In Repayment Interest Borrowing Expense (Class B) b | 68.1 | 96.6 | 111.4 | 161.4 | 196.8 | 236.5 |
| Interest Relief | 20.0 | 28.4 | 43.9 | 56.7 | 63.2 | 69.1 |
| Loans Forgiven | 1.5 | 2.0 | 9.1 | 5.5 | 6.3 | 7.1 |
| Bad Debt Expensec | ||||||
| Debt Reduction in Repayment Expense | 11.5 | 11.5 | 13.3 | 13.3 | 13.4 | 13.7 |
| Bad Debt Expense | 193.3 | 456.2 | 297.2 | 322.5 | 343.2 | 368.7 |
| Total Cost of Government Support Expenses | 443.0 | 758.5 | 634.2 | 725.9 | 795.8 | 876.8 |
| Total Expenses | 563.7 | 885.4 | 834.9 | 938.0 | 1,020.3 | 1,115.2 |
| Net Operating Results | 389.4 | 658.8 | 519.2 | 518.2 | 513.3 | 531.0 |
| Alternative Payments to Non-Participating Province and Territorie | 244.8 | 175.8 | 158.2 | 151.0 | 144.7 | 142.8 |
| Final Operating Results | 634.2 | 834.6 | 677.4 | 669.2 | 658.0 | 673.8 |
| a. These costs are related to Canada Student Direct Loans but reported by the Department of Social Development Canada. b. These costs are related to Canada Student Direct Loans but reported by the Department of Finance. c. This represents the annual expense against the Provisions for Bad Debt and Debt Reduction in Repayment as required under Accrual Accounting. The Bad Debt Expense figure for 2004-2005 includes an adjustment of $257.1 million following the revised Bad Debt Provision Rate published by the Office of the Chief Actuary in the Actuarial Report on the Canada Student Loans Program as at July 31, 2004. This adjustment is retroactive to the beginning of the Direct Loans Regime (2000). d. Starting in 2003-2004, the figures represent the annual expense recorded under the Accrual Accounting as opposed to the actual amount disbursed to the Non-Participating Province and Territories. The actual cash expense for Alternative Payments to Non-Participating Provinces and Territories for 2005-2006 was $ 161.3M. e. 2006-2007 and ongoing planned speding years exclude CSLP related amounts stemming from the Budget 2006 announcement. | ||||||
| (millions of dollars) | Actual | Actual | Planned Spending b | |||
| 2003-2004 | 2004-2005 | 2005-2006 | 2006-2007 | 2007-2008 | 2008-2009 | |
| Revenue | ||||||
| Recoveries On Guaranteed Loans | 91.3 | 76.2 | 66.8 | 66.6 | 61.9 | 55.1 |
| Recoveries On Put-Back Loans | 9.6 | 11.0 | 13.1 | 17.1 | 20.7 | 24.5 |
| Total Revenue | 100.9 | 87.2 | 79.9 | 83.7 | 82.6 | 79.6 |
| Expenses | ||||||
| Loan Administration | ||||||
| Collection Costs a | 9.3 | 7.8 | 6.7 | 7.2 | 7.3 | 7.1 |
| Risk Premium | 11.7 | 5.5 | 2.7 | 4.8 | 2.6 | 1.3 |
| Put-Back | 4.3 | 4.2 | 4.3 | 4.4 | 4.3 | 4.4 |
| Total Loan Administration Expenses | 25.3 | 17.5 | 13.7 | 16.4 | 14.2 | 12.8 |
| Cost of Government Support | ||||||
| Benefits Provided to Students | ||||||
| In-Study Interest Subsidy (Class A) | 27.4 | 16.1 | 12.1 | 6.6 | 3.5 | 1.7 |
| Interest Relief | 53.8 | 34.8 | 23.3 | 14.0 | 9.4 | 5.7 |
| Debt Reduction in Repayment | 10.7 | 27.1 | 31.4 | 15.2 | 9.9 | 5.7 |
| Claims Paid & Loans Forgiven | 33.3 | 25.7 | 15.7 | 11.0 | 7.4 | 5.0 |
| Total Cost of Government Support Expenses | 125.2 | 103.7 | 82.5 | 46.8 | 30.2 | 18.1 |
| Total Expenses | 150.5 | 121.2 | 96.2 | 63.2 | 44.4 | 30.9 |
| Net Operating Results | 49.6 | 34.0 | 16.3 | (20.5) | (38.2) | (48.7) |
| a. These costs are related to Canada Student Direct Loans but reported by the Department of Social Development Canada. b. 2006-2007 and ongoing planned speding years exclude CSLP related amounts stemming from the Budget 2006 announcement. | ||||||