Administration of the Canada Pension Plan and the Employment Insurance Act

Introduction

The Canada Revenue Agency (CRA) and Employment and Social Development Canada (ESDC) jointly administer the Canada Pension Plan (CPP) and the Employment Insurance Act (EIA). However, each organization has separate and distinct roles and responsibilities.

The CRA's responsibilities

The CRA is responsible for determining:

• if an individual's employment is pensionable under the CPP or insurable under the EIA;
• the amount of pensionable or insurable earnings;
• if CPP contributions and employment insurance (EI) premiums are payable;
• how many hours an insured person has in insurable employment;
• how long an employment lasts, including the dates on which the employment began and ended;
• the amount of CPP contributions and EI premiums payable;
• who is the employer;
• if employers are considered to be associated for the purposes of the EIA; and
• the refund amount.

The CRA is also responsible for ensuring that CPP contributions and EI premiums are deducted, remitted, and reported as required by legislation.

ESDC's responsibilities

ESDC is responsible for:

• determining an individual's eligibility for CPP or EI benefits;
• processing individual claims for CPP and EI benefits;
• setting the annual EI premium rate;
• monitoring the socio-economic impact of the CPP and EI legislation;
• amending the regulations made under the CPP and the EIA; and
• keeping a record of each individual's CPP contributions and pensionable earnings.

Please note that the EIA specifically refers to the Canada Employment Insurance Commission (CEIC) as being responsible for many of the activities listed above. However, the CEIC is an entity under the umbrella of ESDC.

Legislative references

• Section 26.1 Canada Pension Plan
• Section 90 Employment Insurance Act