December 5, 2007

Actuaries call for change in Employment Insurance system

OTTAWA

The country’s actuaries, the people who calculate financial risks, say the Employment Insurance system should be run by an independent body, much like the Canada Pension Plan is run.

The Canadian Institute of Actuaries has issued a report saying the EI system is flawed and should be changed to keep it at arm’s length from government. The present system collects far more each year than it spends, but the surpluses are essentially used as part of the government’s general revenues.

The government keeps the accumulated $54-billion surplus on the books, although the money is actually long gone. The actuaries say a new governing body should set rates for long-term stability and invest surpluses to build a real reserve. Now, the premiums are set on an annual basis and don’t take into account longer-term trends in employment, which the actuaries say is wrong.

Canadian Press

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