2019 Federal Budget- Employee Benefits Impacted
How will the new 2019 Federal Budget impact benefit plan sponsors, employees, and employers?
National Pharmacare Program
With the March 2019 Federal budget, progress is being made towards instituting a National Pharmacare Program. The move away from Provincial Pharmacare Programs involves projects to develop a National Drug Formulary and the creation of a Canada Drug Agency (CDA) plus a National Strategy for High-Cost Drugs and Rare Diseases.
Our publicly funded health care system is based on need and is the envy of many countries around the world. However, a National Pharmacare Program would cover the costs for expensive drugs necessary to help Canadians with certain rare diseases.
Protect Employees & Pensions from Employer Insolvency
The new Federal budget is also looking into how to improve creditor protection for plan members should an employer declare bankruptcy. The goal is to improve the fairness and transparency of the insolvency proceedings and make them more accessible for plan members.
Canadian Training Benefit
As of 2020, if you are an employee between the ages of 25 and 64 and with an income of less than $150,000, you may be eligible for the Canadian Training Benefit. This EI Training Support Benefit provides an automatic credit of $250 per year (with a $5000 lifetime limit). The benefit can be used for up to 4 weeks of leave or towards training fees for college, university, or any other eligible institution. You must have 600 insurable hours to qualify.
Summary
For more information about the 2019 Federal Budget in Canada, visit the Government of Canada page entitled, Investing in the Middle Class.
Need Help with Employee Benefits Plans?
If you are an employer and you want to learn more about what you can do for your employees, our employee benefits brokers can help.
If your business employs 10 or more employees and you don’t currently have an employee benefits plan, let us show you how a well-designed plan can benefit your employees and your business.
Benefit Strategies Inc. is located in Edmonton Alberta and we service businesses throughout all the Western Provinces plus the Yukon and the Northwest Territories.
If you still have questions about how the Canadian 2019 Federal budget will affect employee benefits, please call our benefits brokers at 1-780-437-5070 or send us an email.
