Morn.Pension

Question 1

Briefly explain the primary objective of the Canada Health Act (Hint = PPR)

Answer 1

Protect, promote, restore the health of Canadians without financial or other barriers

Question 2

Identify 5 conditions for province to receive unreduced funding under Canada Health Act

(Hint = CUPPA)

Answer 2

1. Comprehensive: Covers all hospitals and medical services
2. Universality: Covers all eligible residents
3. Publicly administered: Administration by non-profit public authority
4. Portable between provinces
5. Accessibility: Uniform terms for all eligible residents

Question 3

Identify 4 methods that provinces use to raise balance not covered by federal transfer payments for medical programs

Answer 3

1. Direct cost-sharing by residents & employers (Ex: ON)
2. Payroll tax (Ex: ON)
3. General revenue (Ex: NB)
4. Tax on group insurance plans (Ex: ON)

Question 4

Identify 2 reasons for the inception of WC insurance

Answer 4

1. COURTS: reduce the burden on courts and congestion in courts
2. VICTIMS: provide immediate assistance to injured worker

Question 5

Briefly describe WC insurance

Answer 5

Form of no-fault insurance, that provides benefits to employees who are injured at work

Question 6

How is WC insurance funded

Answer 6

By the employer contributions

Question 7

Explain individual liability in WC insurance regarding:

a) operation
b) funding
c) where used

Answer 7

a) OPERATION: by WC boards
b) FUNDING: each employer is self-funded based on claims history; pay-as-you-go model
c) WHERE USED: public agencies, Government

Question 8

Explain collective liability in WC insurance regarding:

a) operation
b) funding
c) where used

Answer 8

a) OPERATION: by WC boards
b) FUNDING: each industry class (based on activity & risk) is assessed collectively based on claims history
c) WHERE USED: non-public industries

Question 9

Briefly describe EI

Answer 9

Federal insurance pogram:
provides individuals with temporary income replacement..
to eligible workers who lose their jobs through no fault of their own

Question 10

Explain how the EI program is financed.

Answer 10

• Contributions from employers and employees
• Some programs funded with general tax revenues

Question 11

Identify the 2 objectives of EI (Employment Insurance)

Answer 11

1. Income replacement (temporary)
2. Re-employment assistance

Question 12

Identify 3 reasons why EI wouldn’t be viable without Govt involvement

Answer 12

1. Adverse selection: Only those at risk of losing their jobs would buy it
2. Can be catastrophic in an economic crisis or downturn
3. EI has a social purpose and helps workers find work. Without it Gov. would pay social assistance anyway
4. Govt already has necessary structures in place to facilitate operations

Question 13

Briefly describe 4 minimum requirements for an employee benefits plan to qualify for EI premium reduction.

Answer 13

1. Employee benefits GREATER than EI benefits
2. Benefits START in 15 days
3. Benefits DURATION longer than 15 weeks
4. Employee compensation NOT REDUCED even if additional EI benefits are given in same period

Question 14

Briefly describe 3 circumstances under which a potential claimant will not qualify for regular EI benefits.

Answer 14

1. Dismissal with cause
2. Quit
3. Strike

Question 15

tax treatment of WC with respect to (premiums, benefits)

Answer 15

Prm: The employer contribution is a tax-deductible operating expense

Benf: The employer contribution is not a taxable benefit for employees

Benf: Payments to injured employees are not subject to tax

Question 16

tax treatment of EI with respect to (premiums, benefits)

Answer 16

Prm: prm paid by the employer are tax deductible
Prm: prm paid by employer Not a taxable income for employee
Prm: prm paid by the employee give rise to a tax credit
Benf: benefits are taxable income to the recipient