Supplementary Unemployment Benefit Plan
The Fellowship has registered a Supplementary Unemployment Benefit Plan with Human Resources Development Canada. The plan is open to all Fellowship churches; however, your church must register before it will be allowed to participate in the plan. The enrolment procedure is described later.
While the Supplementary Unemployment Benefit Plan was designed to be coordinated with the Long-Term Disability coverage offered by the Fellowship, it is not mandatory for churches to participate in the Fellowship Long Term Disability plan to be able to participate in this plan. This combination of plans is designed to give employees income during periods in which they are unable to work due to accident or illness. Basically here is how the plan would work:
The church would pay 95% of the employee’s salary for the first two weeks of any illness (this is also the waiting period for Employment Insurance Sick Benefits).
In conjunction with Employment Insurance, the church and the EI Sick Benefit would pay 95% of the employee’s pay (Human Resources Development Canada would, in most cases, pay 55% (up to $423/wk-2005 max.) of the employee’s insurable earnings and the church would “top up” the remainder so that the total income would be 95% of the employee’s regular income). This would continue for up to 15 weeks. Employees, whose net taxable income (including income benefits) is more than $48,750 (2002), may have to pay back up to 30% of the EI benefit received. This claw-back is only applicable to benefits received due to layoff or unemployment.
If the employee was still unable to work because of sickness or accident and was enrolled under the Fellowship Long-Term Disability plan, up to 66 2/3% of the employee’s regular pay would be paid tax-free to the employee. (This assumes that the employee has elected for this amount of coverage under the Long-Term Disability provision of the plan.) Subject to continued disability this payment could continue until age 65. The tax-free benefit approximates 85% of net pay prior to disability.
PLEASE NOTE: Every effort has been made to communicate, in a simple manner, our understanding of the SUB plan and the responsibility of the church. It is possible that payments or terms might vary from our understanding. Actual terms and payments from Employment Insurance are subject to regulation. For example, we have assumed salary examples which would qualify for payment from EI of 55% of the regular income up to the EI maximum; however, if actual regular income had changed it might not qualify for the maximum amount assumed to be payable from EI.
How To Register
In order to enrol in the plan, the church must complete the Supplementary Unemployment Benefit Plan Response Form and forward it to the Fellowship Office along with its Canada Customs and Revenue Agency Business number and the number of people that will participate. We will coordinate the approval of the church with Human Resources Development Canada. Second, your church would have to agree to the terms of the plan, which is to pay benefits at 95% of the employee’s regular income during the first 17 weeks of disability.
CLICK HERE to complete the Supplementary UI Application Form