Increase in Employment Insurance maximum insurable earnings will change Short-Term Disability plans

December 10, 2024

The federal government announced the 2025 Employment Insurance (EI) rates and maximums. Below are the new rates and the start date.

New rates effective January 1, 2025

Maximum insurance earnings

$65,700

Maximum weekly EI benefit

$695

 

This change affects Clients’ Short-Term Disability (STD) plans where:

  • the maximum benefit reflects the EI maximum weekly benefit ($695 for 2025), or
  • the EI maximum earnings amount ($65,700 for 2025) is used to work out the STD benefit amount.

What you need to know

Insurer-Administered (IA) Clients won’t need to amend their contract if their STD maximum is based on the EI maximum weekly benefit or earnings. These Clients will see this change on their January invoice. We’ll also adjust weekly benefit or earnings for disability claims that start on or after January 1, 2025. We’ll base the changes on the EI maximum weekly benefit or earnings.

Policyholder-Administered (PA) Clients who prepare their own statements must include these changes in their systems and processes. They’ll also need to update their billing statement with the new applicable STD amounts.

If your Client has an STD maximum amount that is less than the EI weekly maximum of $695, let us know whether the sponsor would like to amend their plan. We can adjust their STD benefit to reflect the new EI maximum weekly benefit amounts. If your Client uses a lower benefit amount, their plan won’t qualify for the EI premium reduction program.

Communication plan

We’ll send this Focus Update to plan sponsors on December 12, 2024. 

Questions? We’re here to help.

Please contact your Sun Life Group Benefits representative.