2021 Bulletin on Prince Edward Island Social Legislation
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2021 Bulletin on Prince Edward Island Social Legislation
2021 Bulletin
on Prince Edward Island Social Legislation
We are proud to present the first edition of the Bulletin on Prince Edward Island Social Legislation. It outlines the terms and conditions
of the various federal and provincial social assistance programs in effect this year. These programs provide basic financial and
physical security for the entire population.
Over the years, SSQ Insurance has evolved in response to social changes, customer needs and the realities faced by the organizations
and individuals it insures. Through changing times, one thing has remained constant: our desire to preserve the collective spirit
and solidarity, values that have, since the very beginning, guided our actions and continue to inspire us every day.
Offering solutions that complement these public programs is one of our missions. Every day, we find innovative solutions to better
serve the interests of our plan members and customers. Pertinent and adapted products, excellent and attentive service, an
unwavering devotion to reinvention: this is how our Company continues to help its customers plan their future and protect their
financial assets throughout their lives.
With 2020 being marked by the COVID-19 pandemic and its significant impact on the economic, financial and health
fronts, this year’s edition of our bulletin includes information on the measures temporarily put in place to support
the population during this crisis. Some of these measures may thus change depending on how the health and
economic situation unfolds. It is therefore always advisable to check the updated information on the websites of
the respective ministries and agencies.
Table of Contents
1. Employment Insurance Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2. Canada Child Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3. Workers’ Compensation Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4. Employment Standards Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
5. Canada Pension Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
6. Old Age Security Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
7. Health Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
8. Social Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
9. Tax Impact of Group Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Return to the Table of Contents
Employment and Social Development Canada
1. Employment Insurance Act
Canadian workers and their employers pay premiums to be eligible for coverage under the Employment Insurance Act. This coverage
allows them to receive some income in the event of job loss, parental leave or to support a critically ill family member.
Contributions
2021 2020
Yearly maximum insurable earnings $56,300 $54,200
Employee premium rate per $100 of gross insurable earnings: 1.58% 1.58%
Maximum annual employee premium $889.54 $856.36
Employer premium rate per $100 of gross insurable earnings
2.212% 2.212%
(1.4 times the employee’s contribution):
Maximum annual employer premium $1,245.36 $1,198.90
Types of Benefits
Different types of benefits are offered to Canadians depending on their personal circumstances.
Regular Benefits
Employment Insurance (EI) provides regular benefits to people who lose their jobs through no fault of their own (for example,
due to shortage of work, seasonal layoffs, etc.) and who are available for and able to work, but can’t find a job. To be eligible,
individuals must have worked between 420 and 700 hours* during the reference period.
Sickness Benefits
Sickness benefits paid to individuals who are unable to work because of sickness, injury, or quarantine. To be eligible, workers
must accumulate 600 insurable hours* and have lost more than 40% of their earnings.
Regular and Sickness Benefits
Maximum insurable annual earnings in 2021 $56,300
Waiting period before receiving benefits 7 days
Benefits 55% of the average insurable salary over the past 52 weeks
Maximum weekly benefit $596
Duration of benefits Regular
From 14 to 45 weeks, based on the unemployment rate in the region
Sickness
A maximum of 15 weeks
A Closer Look at Group Insurance
Integrated and Non-Integrated Plans
Usually, social programs are first payers. Short-term and long-term disability insurance coverage serve as a complement
to the basic protection offered by government programs.
Working While on Claim
With Working While on Claim, individuals can keep receiving part of their EI benefits and all earnings from their job. This means,
they may keep 50 cents of their EI benefits for every dollar earned, up to 90% of the weekly insurable earnings used to calculate
the benefits. Any amount earned beyond this threshold is deducted dollar for dollar from their benefits.
For more information: Employment Insurance – Working While on Claim
*Caution: Temporary COVID-19 relief measure.
SSQ Insurance
2021 Bulletin on Prince Edward Island Social Legislation 1Return to the Table of Contents
Variable Best Weeks
The EI benefits rate is based on the best paid weeks of the previous year. The number of weeks used in the calculation varies
from 14 to 22 depending on the unemployment rate in the economic region where the claimant resides.
For more information: Variable Best Weeks
COVID-19 Measure
Canada Recovery Benefit (CRB) for people who do not qualify for regular EI benefits
The Canada Recovery Benefit (CRB) gives income support to employed and self-employed individuals who are directly affected by
COVID-19 and are not entitled to EI benefits. Eligible individuals could receive $1,000 ($900 after taxes withheld) for a 2-week
period. If their situation continues past 2 weeks, individuals will need to apply again every 2 weeks, up to a total of 13 eligibility
periods (26 weeks) between September 27, 2020 and September 25, 2021. Specific eligibility criteria apply depending on the
circumstances of the applicants. Learn more
Temporary easing of eligibility requirements for regular benefits
Since September 27, 2020, temporary changes have been made to the eligibility requirements for EI benefits. These changes will
be in effect for one year:
• A minimum unemployment rate of 13.1% applies to all regions across Canada since August 9, 2020:
- if your region’s unemployment rate is higher than 13.1%, the higher actual rate is used to calculate benefits.
- this means you can receive at least 26 weeks of regular benefits.
• You only need 120 insured hours to qualify for benefits because you’ll get a one-time credit of:
- 300 insured hours to help you meet the required 420 insured hours of work for regular benefits.
- 480 insured hours to help you meet the required 600 insured hours of work for sickness or caregiver benefits.
• You’ll receive at least $500 per week before taxes but you could receive more.
• If you received the Canada Emergency Response Benefit (CERB), the 52-week period to accumulate insured hours will be extended.
Caregiving Benefits
Employment Insurance offers three types of caregiving benefits. To be eligible, workers must have accumulated at least 600 insurable
hours* and have lost more than 40% of their earnings. The benefits are equal to 55% of the average insurable salary over the
last 52 weeks, up to a maximum of $596 per week. The waiting period before receiving benefits is seven days.
Benefits Maximum weeks Person receiving care
payable1
Family caregiver benefit for children 35 weeks A critically ill or injured person under 18
Family caregiver benefit for adults 15 weeks A critically ill or injured person 18 or over
Compassionate care benefits 26 weeks A person of any age who requires end-of-life care
1
Benefits can be paid for up to 52 weeks following the date the person is certified by a medical doctor or nurse practitioner as critically ill or injured
or in need of end-of-life care.
Canada Training Benefit
In late 2020, the federal government introduced financial assistance to help Canadians between the ages of 25 and 64 pay for
training. This support includes:
• A non-taxable training credit to help Canadians with the cost of training. Eligible workers accumulate a credit balance at a rate
of $250 per year, up to a lifetime maximum of $5,000. The credit can be used to refund up to half the costs of taking a course or
enrolling in a training program.
• An Employment Insurance Training Support Benefit that provides workers with up to four weeks of income support paid at 55% of
average weekly earnings to help workers on training leave and not receiving their regular paycheque cover their living expenses
such as rent, utilities and groceries.
• Leave provisions to protect workers’ ability to take time away from work to pursue training.
The Canada Training Benefit will cover up to 50% of direct costs of training. For more information on this measure, refer to the
following page on the 2019 Federal budget website: The Canada Training Benefit.
For more on the improvements and changes made to different Employment Insurance programs, see Employment Insurance
– Recent improvements and overview.
*Caution: Temporary COVID-19 relief measure.
SSQ Insurance
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EI Maternity and Parental Benefits
EI maternity and parental benefits provide financial assistance to:
• people who are away from work because they’re pregnant or have recently given birth
• parents who are away from work to care for their newborn or newly adopted child
Eligibility Criteria
• Be pregnant or have recently given birth when applying for maternity benefits.
• Be a parent caring for a newborn or newly adopted child when applying for parental benefits.
• Have experienced a drop in earnings of more than 40% of income for at least one week.
• Have accumulated 600 hours* of insurable employment in the last 52 weeks preceding the start of the claim, or since the start
of the last claim, whichever is the shorter period.
Maternity Benefits
Maternity benefits are paid to biological mothers, including surrogate mothers, who cannot work because they are pregnant or
have recently given birth. They cannot be shared between the two parents. The person receiving maternity benefits may also be
entitled to receive parental benefits.
Parental Benefits
Parental benefits are paid to the parents of a newborn or newly adopted child. Parents must choose between two options: Standard
parental benefits or extended parental benefits. Once they start receiving parental benefits, they cannot change options.
Parents sharing benefits must each choose the same option. They can receive their weeks of benefits at the same time or one
after another. Each parent must submit their own application
Benefits Maximum Weeks Benefit Rate Weekly Maximum
Maternity Up to 15 weeks 55% $595
Parental
Standard Up to 40 weeks
One parent cannot receive more than 35 55% $595
weeks of standard benefits
Extended Up to 69 weeks
One parent cannot receive more than 61 33% $357
weeks of extended benefits
COVID-19 Measure
Since September 27, 2020, temporary changes have been made to the eligibility requirements. Claimants only need 120 insurable
hours to qualify for benefits because they will get a one-time credit of 480 insured hours. For maternity and standard parental
benefits, they will receive at least $500 per week before taxes. For extended parental benefits, they’ll receive at least $300 per week
before taxes.
Additional Information
Employment Insurance benefits and leave
*Caution: Temporary COVID-19 relief measure.
SSQ Insurance
2021 Bulletin on Prince Edward Island Social Legislation 3Return to the Table of Contents
Canada Revenue Agency
2. Canada Child Benefit
The Canada Child Benefit (CCB) is a tax-free monthly payment made to eligible families to help them with the cost of raising children
under 18 years of age. The CCB may include the child disability benefit, where applicable.
Primary Caregiver
The person primarily responsible for the care and upbringing of the child should apply for the CCB. The person primarily responsible
for the care and upbringing of the child is someone who:
• Supervises the child’s daily activities and needs
• Sees to it that the child’s medical needs are met
• Arranges for child care when necessary
When parents live together in the same household as the child, the Canada Revenue Agency automatically considers the mother
to be the person primarily responsible for the care and upbringing of the child. It is therefore up to the mother to submit the
application for benefits. If however, the father is the person primarily responsible for the care and upbringing of the child, he
must append a note from the mother with his application. The father then becomes the designated person primarily responsible
for the care and upbringing of all the children in the household.
In the case of same-sex parents living together in the same household as the child, either of the parents may apply for all children
in the household.
In the case of shared custody on a more or less equal basis, both parents can be deemed to be primarily responsible for the
child’s care and upbringing. Each eligible individual will get 50% of the payment he or she would have received if the child lived
with him or her full time.
Eligibility
To be eligible for the CCB, the individual primarily responsible for the child’s care and upbringing must:
• Live with the child who is under age 18
• Be a resident of Canada for tax purposes
• Satisfy any one of the following conditions:
- Be a Canadian citizen
- Be a permanent resident
- Be a protected person
- Be a temporary resident of Canada for the last 18 months and have a valid permit as of month 19
- Be an Indigenous person who meets the definition of "Indian" under the Indian Act
Benefits
The Canada Revenue Agency uses the information in the income tax and benefit return to calculate the CCB payments. In order
to receive the benefit, the primary caregiver must file an income tax return every year, regardless of whether or not they earned
any income. The primary caregiver’s spouse or partner must also file an income tax return every year.
Benefits are paid on a monthly basis, from July to June of the following year. The amount is recalculated in July based on the
information provided in the income tax return of the previous year. The information used to calculate the benefit is:
• The number of children living with the individual primarily responsible for their care and upbringing
• The age of the children concerned
• The adjusted family net income (AFNI), which appears on line 236 of the income tax return and to which is added the net income
of the spouse or partner, where applicable
• The eligibility of a child for the child disability benefit
SSQ Insurance
2021 Bulletin on Prince Edward Island Social Legislation 4Return to the Table of Contents
Basic Benefit – July 2020 to June 2021
The CCB is calculated as follows:
• $6,765 per year ($563.75 per month) for each eligible child under the age of 6
• $5,708 per year ($475.67 per month) for each eligible child aged 6 to 17
The amount of CCB is reduced when the adjusted family net income (AFNI) is over $31,711. The reduction is calculated as follows:
Number of children Family income from $31,711 to $68,708 Family income over $68,708
1 child 7% of the income $2,590 + 3.2% of the income
2 children 13.5% of the income $4,995 + 5.7% of the income
3 children 19% of the income $7,029 + 8% of the income
4 children or more 23% of the income $8,509 + 9.5% of the income
Basic amount of the Child Disability Benefit (CDB) $2,886 per eligible child
How and When to Apply?
The individual primarily responsible for the child’s care and upbringing must submit a CCB application as soon as possible, namely:
• As of the child’s birth
• As soon as the child lives with them full time
• As soon as the spouse or partner satisfies the eligibility conditions
There are three ways to submit a CCB application:
• The Automated Benefits Application, possible through the partnership with Canada Revenue Agency (CRA) and the provincial vital
statistics office. The CRA uses the information on the child’s provincial birth registration form to determine the primary caregiver’s
eligibility for benefits and tax credits
• The CRA’s My Account service: The primary caregiver must have a valid account and apply for child benefits online.
• Complete the RC66 Canada Child Benefits Application available online.
Additional Information
Canada Child Benefit
Workers Compensation Board of PEI
3. Workers’ Compensation Act
Workers’ Compensation
The Workers Compensation Board (WCB) of PEI provides for an income replacement plan, medical coverage and support to help
people get back to work after a work-related injury or illness.
The temporary wage-loss benefits payable to workers are calculated using their pre-injury income. Benefits are equivalent to 85%
of net annual earnings up to the maximum annual earnings limit. The maximum annual earnings amount is adjusted on January 1
of each year. The maximum annual earnings for 2021 is $55,300. Wage-loss benefits are tax free, however workers need to report
them to Revenue Canada.
These benefits may continue as long as the worker is unable to work. Benefits may be payable until age 65.
SSQ Insurance
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2021 Average Premium Rate
The rate is set at $1.57 per $100 of company payroll, a slight increase of $0.05 over last year’s rate.
Impairment Awards
Lump-sum impairment awards are granted to compensate workers who have suffered permanent damage to their physical and
psychological integrity. Impairment awards are based on the percentage of total body impairment. They may not exceed 85% of
the maximum annual net earnings. However, the law provides for a minimum amount of $500.
Death Benefits
When a worker dies as a result of a work-related injury, benefits are paid to the surviving spouse and children.
Death Benefit
Funeral Expenses Up to $7,500
Survivor Benefits
Surviving Spouse Amount equal to 70% of the wage loss benefits that would have been payable to the worker,
less a percentage of any Canada Pension Plan (CPP) survivor benefits payable to the spouse as a
result of the death.
Benefits are payable until the spouse dies or reaches age 65, or until the worker would have
reached age 65, whichever date is later.
Dependent Child For accidents that occurred on or after January 1, 1992, a monthly payment of up to 10% of the
deceased worker’s net earnings calculated over the 12-month period immediately preceding the
accident.
Benefits are payable until the child reaches age 18, or age 22 if the child continues to be enrolled
full time in an educational institution. Total payment for all children must not exceed 30% of the
wage loss benefits that would have been payable to the worker.
Guardian of Orphaned An amount equal to 20% of the wage loss benefits that would have been payable to the worker
Child for each child under the age of 18 years, up to a maximum of 60% in wage loss benefits that
would have been payable to the worker.
Other Dependents An amount proportionate to the financial loss to the dependents but cannot exceed $250 per
month per dependent or $500 per month in total for all dependents.
1. Amounts correspond to those in effect for workers whose death results from an accident occurring on or after January 1, 1992. These amounts
are indexed as per the regulations.
Additional Information
Workers’ Compensation Board of PEI
SSQ Insurance
2021 Bulletin on Prince Edward Island Social Legislation 6Return to the Table of Contents
Employment Standards Board
4. Employment Standards Act
The Employment Standards Act (ESA) provides the minimum standards for most employees working in PEI. It sets out the rights
and responsibilities of employees and employers in most PEI workplaces, including the minimum wage, hours of work limits,
public holidays, vacation and some types of leave, as well as layoffs and termination of employment.
Job-Protected Leaves
Employees may take job-protected leaves of absence each year to meet family obligations or for personal events. Here is an
overview of the terms and conditions surrounding these leaves, depending on the situation.
Leave Eligibility Maximum Length Conditions
Family Worked at least 6 months for the 3 days during a Unpaid
Responsibility same employer 12-month period
Leave
Sick Leave Worked at least 3 months for the 3 days during a Unpaid
same employer 12-month period If the employee takes
3 consecutive days, the employer
may ask for a medical certificate
Employees who have more than
5 years of continuous service
with the same employer are
entitled to 1 day of paid sick
leave and up to 3 days of unpaid
sick leave each calendar year
Bereavement n/a 3 days during a Immediate family: 1 day paid
Leave 12-month period leave and 2 days unpaid leave
Extended family: 3 days unpaid
leave
Compassionate The member of the employee’s 28 weeks Unpaid
Care Leave family must be diagnosed with
a serious medical condition
carrying with it a significant risk
of death within 28 weeks
Domestic Worked at least 3 months for the Up to 10 days within a The employee can use this leave
Violence, Intimate same employer 12-month period intermittently (on an as-needed
Partner Violence For an employee, an employee’s 3 days of paid leave and an basis) or all at once
and Sexual child, or individual for whom the additional 7 days of unpaid leave 3 days of paid leave and an
Violence Leave employee is a primary caregiver additional 7 days of unpaid leave
who is the victim of domestic
violence, intimate partner
violence or sexual violence
Leave for Care of Worked at least 3 months Up to 37 weeks within a Unpaid
a Critically Ill for the same employer 52-week period
Child The child must be under
18 years old
Leave for Crime Worked at least 3 months Disappearance: up to 52 weeks Unpaid
Related for the same employer Death: up to 104 weeks An employee must provide
Disappearance or The child must be under reasonable documentation to
Death of a Child 18 years old show entitlement to the leave if
the employer makes a written
request
SSQ Insurance
2021 Bulletin on Prince Edward Island Social Legislation 7Return to the Table of Contents
(continued)
Leave Eligibility Maximum Length Conditions
Maternity/ Worked at least 20 weeks for the Maternity Leave: Unpaid
Parental/Adoption same employer in 52 weeks prior Up to 17 weeks Employees must give their
Leave to the leave Leave can start as early as employer at least four weeks
13 weeks prior to the expected written notice of both the date
date of delivery they intend to go on leave and
Parental Leave: the date on which they intend to
return to work
Up to 62 weeks
Total combined maternity and
parental leave for a mother
cannot exceed 78 weeks and
must be taken consecutively
Parental leave for a father cannot
exceed 62 weeks
Adoption Leave:
Up to 62 weeks
Combined adoption leave for
both parents cannot exceed
62 weeks and must be taken
within 12 months of a child’s
arrival in the home
Note: Other job-protected leaves of absence are provided for by employment standards, including court, emergency and reservist leaves.
Annual Vacation
Employees are entitled to an annual vacation with pay as follows:
Employment Period Vacation Leave Vacation Pay
(the shorter of the two)
Less than 8 years 1 day for each month worked, or 4% of gross salary
2 standard weeks of vacation per
reference year
8 years or more 1.25 days for each month worked, 6% of gross salary
or 3 standard weeks of vacation per
reference year
Minimum Wage
Hourly Rate Since April 1, 2020 Effective April 1, 2021
General $12.85 $13.00
Regular Work Week
A standard work week is 48 hours. Employees who work more than the standard week must be paid a wage with a 50% premium
(time and a half). The law provides for certain exceptions.
Public Holidays
On statutory holidays, most employees are entitled to time off with pay based on their average daily wage. If the employee is not
scheduled to work on the paid holiday, the employer can offer the employee another day off or a regular day’s pay for that holiday.
Additional Information
Employment Standards in PEI
SSQ Insurance
2021 Bulletin on Prince Edward Island Social Legislation 8Return to the Table of Contents
Employment and Social Development Canada
5. Canada Pension Plan
The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that provides partial income replacement upon
retirement. Those who qualify receive the CPP retirement pension for the rest of their lives.
Eligibility
• Be at least 60 years old
• Have made at least one valid contribution to the CPP
Contributions
Every person over the age of 18 who works in Canada and earns more than $3,500 per year must contribute to the Canada Pension
Plan. Employees pay half the required contributions and their employer pays the other half. Those who are
self-employed pay 100% of the contribution. At age 70, workers no longer contribute to the CPP, even if they are still working.
The contribution amount is based on employment income. The contribution rate is indexed on January 1 of each year.
Benefits
The standard age to start collecting CPP benefits is 65; however, workers can take a permanently reduced pension as early as age 60.
Contributions entitle you to the following benefits:
• Retirement pension
• Post-retirement benefit
• Disability benefits
• Survivor benefits
The CPP allows pension splitting for married or common-law couples and credit splitting for divorced or separated couples under
certain conditions.
A contributor who wishes to receive benefits must submit an Application.
Overview of CPP Amounts
Basic amounts for 2021
Maximum annual allowable earnings $61,600
Basic exemption $3,500
Contribution rate
Employee and employer 5.45%
Self-employed workers 10.9%
Maximum contribution
Employee and employer $3,166.45
Self-employed workers $6,332.90
Basic amounts for 2021 (continued)
Maximum amount for lump-sum payment
Maximum death benefit $2,500
Maximum monthly amounts
Retirement and post-retirement pensions
Retirement pension (at age 65) $1,203.75
Post-retirement benefit $30.09
SSQ Insurance
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Basic amounts for 2021
Disability benefit
Disability benefit $1,413.66
Post-retirement disability benefit $510.85
Children of disabled CPP contributor $257.58
Survivor’s pension
Contributor younger than 65 $650.72
Contributor 65 and older $722.25
Children of deceased CPP contributor $257.58
Additional Information
Canada Pension Plan
Employment and Social Development Canada
6. Old Age Security Act
The Old Age Security Act provides for the payment of four benefits in accordance with the following conditions:
Benefit Eligibility
Old Age Security pension (OAS) • Must be a Canadian citizen aged 65 or over
Guaranteed Income Supplement (GIS)
Provides additional income to low-income • Receive the OAS pension
seniors living in Canada • Meet requirements related to income
Allowance (ALW)
Offered to low-income seniors • Must be the spouse or common-law partner of a person who receives the OAS
pension and GIS, or be eligible to receive them
• Must be aged 60 to 64
• Must be a Canadian citizen or a person authorized to reside in Canada at the
time the Allowance application is approved, or had been approved the last time
he or she travelled outside of Canada
• Must have lived in Canada for at least 10 years after turning 18
Allowance for the Survivor
Additional income for low-income seniors • Must be aged 60 to 64
• Must be a Canadian citizen or a legal resident at the time the application for
the Allowance is approved or have been approved the last time he or she
travelled outside Canada
• Has an annual income below the prescribed limit
• Has a spouse or common-law partner who has died, and has not remarried nor
lived in a common-law union for more than 12 months since
• Must have lived in Canada for at least 10 years after turning 18
SSQ Insurance
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Payment Amounts
OAS pension and benefit payments are revised on a quarterly basis (January, April, July and October) to reflect the increased cost
of living as measured by the Consumer Price Index (CPI). Payments are made as follows:
Old Age Security pension payments from January to March 2021
Type of Benefit Maximum Income level Income level cut-off for
amount1 cut-off2 top-ups
Old Age Security pension (OAS) 3, 4
$615.37 $129,075 n/a
Guaranteed Income Supplement (GIS)
Single, widowed or divorced $919.12 $18,648 $8,864
Spouse/common-law partner of someone who:
Does not receive the OAS pension $919.12 $44,688 $17,728
Receives the OAS pension $553.28 $24,624 $7,936
Receives the Allowance $553.28 $44,688 $7,936
Allowance 4
$1,168.65 $34,512 $7,936
Allowance for the Survivor $1,393.08 $25,152 $8,864
1
The maximum amount includes top-ups to the GIS and Allowances.
2
The income level cut-offs do not include the OAS pension, the first $5,000 of employment or self-employment income and 50% of employment
or self-employment income between $5,000 and $15,000.
3
The OAS pension repayment range in 2021 is from $79,845 to $129,075.
4
Individuals can defer receiving the OAS pension beyond age 65 in exchange for a higher pension. The monthly OAS pension is increased by 0.6%
for every month it is delayed up to a maximum of 36% at age 70.
Additional Information
Old Age Security pension
Department of Health and Wellness
7. Health Insurance
Prince Edward Island’s hospital and medical services plan is designed to provide eligible residents with coverage for basic hospital
and medical treatment.
Eligibility
To qualify for medical coverage, applicants must meet the following conditions:
• Be a citizen of Canada or be lawfully admitted to Canada for permanent residence
• Make PEI their primary residence
• Be physically present in PEI at least six months in a calendar year
It is the responsibility of each individual to register themselves and their dependents who reside in the province. Individuals
covered by the plan receive a unique identifier on their PEI Health Card. Insureds will be asked for their PEI Health Card each time
they visit a medical office or undergo medical testing or treatment at a publicly funded health facility. Pharmacists will also require
the health card to record prescription medications in the PEI Drug Information System.
SSQ Insurance
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Overview of Care and Services Covered
Coverage Terms and Conditions
Physician Care or treatment in a clinic or hospital, including:
• Emergency care
• Out-patient care
• Surgery or a diagnostic test
• In-patient care further to surgery or for chronic illnesses
• Maternity care provided by a physician or midwife
Hospital Services Accommodation in a standard ward
Additional insurance is required to obtain a private or semi-private room
Optometry Kindergarten students:
(eye-health services) • One free eye exam
• One free pair of glasses if required
Dental Care All children:
Preventative dental services (screening, fluoride, cleaning, and sealants)
Children who are not covered under a private dental insurance plan:
Basic dental diagnosis and treatment (annual checkup, x-ray, fillings, extraction, root canals, and
dentures limited to anterior teeth)
Cleft palate orthodontic treatment for children born with a cleft palate
Adults:
Certain dental treatment is provided to residents in long-term care facilities
Paramedicals Physiotherapy services provided in a hospital
Medical Supplies Ostomy Supplies Program
The program offers up to 100% coverage to assist with the out-of-pocket cost of eligible ostomy
supplies up to a maximum of $2,400 per year from July 1 to June 30. The amount of coverage is
based on annual income.
Details and application
Insulin Pump Program
Depending on household income and private medical insurance, the program may offer up to
100% coverage to assist with the cost of the pump and monthly pump supplies.
Details and application
Cancer
Some expenses and supplies are reimbursed through the Cancer Financial Assistance Program
Nursing and Home Care Health and support care provided through the Home Care Program.
Requests considered on a case-by-case basis.
The program covers various care or services: nursing, palliative care, nutrition services,
physiotherapy, etc.
Details
A Closer Look at Group Insurance
Keeping employees engaged and healthy
The public health insurance plan provides basic coverage for many health care services. Private insurance with a group
plan offers more generous coverage that allows employers to rely on healthy workers. Not to mention that benefits
are an excellent way to stand out as an employer of choice. When it comes to choosing an employer, many workers
consider the possibility of, for example, protecting their children while they are in school, getting coverage for vaccinations
and tests that would not otherwise be covered, or paying a fraction of the fees of other health care professionals with
comprehensive health insurance coverage.
SSQ Insurance
2021 Bulletin on Prince Edward Island Social Legislation 12Return to the Table of Contents
Pharmacare
PEI Pharmacare helps Islanders with the cost of eligible prescription medications, certain medical supplies, and pharmacy services.
Several programs are offered depending on a person’s financial situation or medical condition. The main programs are:
Catastrophic Drug Program
Provides support to any individual or family whose eligible prescription drug costs are affecting their household’s ability to maintain
life essentials. With this program, annual out-of-pocket costs for eligible prescription medications, from July 1 to June 30, are
capped so that they do not to exceed a set percentage of household income. When this limit is reached, the costs are covered by
the Catastrophic Drug Coverage Program.
The limit is calculated as follows:
Annual Income Contribution Patients Pay Before Assistance
Percentage Family Income
Up to $20,000 3%
From $20,000 to $50,000 5%
From $50,000 to $100,000 8%
Over $100,000 12%
Seniors’ Drug Program
For persons 65 years of age or older, based on the Pharmacare formulary.
For each eligible prescription seniors pay $8.25 plus $7.69 of the pharmacy dispensing fee. Any remaining cost will be covered by
the program.
Financial Assistance Drug Program
The program supports low-income families by covering the cost of approved prescription medication. The program covers parents
and their children under the age of 19, or under the age of 25 if a full-time student. They must pay the pharmacy dispensing fee.
Assistance is based on family size and household income.
Family Size Maximum Family Income
1 child less than $24,800
2 children less than $27,800
3 children less than $30,800
4 children less than $33,800
For each additional child and $3,000 to the limit
High Cost Drug Program
The program helps pay for high cost medication. Coverage is based on household income and covers approved medications for
certain specific illnesses, namely:
• Ankylosing Spondylitis • Psoriatic Arthritis
• Some types of cancer • Pulmonary Hypertension
• Crohn’s Disease • Rheumatoid Arthritis
• Multiple Sclerosis • Wet Age-Related Macular Degeneration
• Plaque Psoriasis
For information on all of PEI’s public drug programs and how they work, visit Drug Programs
SSQ Insurance
2021 Bulletin on Prince Edward Island Social Legislation 13Return to the Table of Contents
A Closer Look at Group Insurance
Anything can happen when you’re travelling! Do you have private
insurance?
The cost of healthcare services is generally higher when outside your province of residence. It is essential to take out
private travel insurance that will cover you in case of illness or accident while travelling. Most group insurance contracts
include travel insurance. In addition to covering the costs associated with obtaining emergency health care that is not
covered by public insurance, this type of insurance is often accompanied by trip cancellation insurance or travel
assistance services.
Additional Information
Health PEI – Health Care Coverage
Department of Social Development and Housing
8. Social Assistance
The Social Assistance Program helps low-income Islanders meet their basic needs when they cannot. The program provides help
on a case-by-case basis to people based on their needs paying for:
• Food
• Shelter
• Health care (eye glasses, medication, basic dental, etc.)
The amount granted depends on household income and family size. It also depends on whether the recipient owns their own
home or rents.
Detailed benefit amounts based on needs categories and family size
Earnings Exemption
People receiving assistance can earn more income, up to the following annual amounts, without having their benefits reduced.
Family Size Monthly Exemption
Single person $250 + 30% of any additional income
Couple $400 + 30% of any additional income
Single person or couple with disability $500 + 30% of any additional income
Employment Assistance
The program provides coaching and financial assistance to support recipients in their efforts to obtain employment, such as:
• Financial help to buy clothes, get driver’s license
• Life-skills training
• Coaching on how to look for a job
• Help developing skills and exploring transportation options for getting to work
Additional Information
Social Assistance Program
SSQ Insurance
2021 Bulletin on Prince Edward Island Social Legislation 14Return to the Table of Contents
9. Tax Impact of Group Insurance
From a fiscal standpoint, some of the group insurance premiums that the employer pays for its employees are considered
work-related taxable benefits. For the employer, these taxable benefits increase the total payroll and as a result, increase the
contributions to various governmental programs. For employees, this increases their income which indirectly creates a tax to pay.
The table below shows the tax impact of the various benefits included in group insurance plans.
Coverage Deductible Expenses1 Employer’s Benefits Taxable for
for Employer Contribution Taxable the Employee
for Employee
Life Yes Yes No
Accidental death and dismemberment,
dismemberment due to illness and critical Yes Yes No
illness
Dependents’ life Yes Yes No
Short term disability Yes No Yes2
Long term disability Yes No Yes2
Health Yes No No
Dental Yes No No
1
Expenses refer to the portion of the premiums paid by the employer for this benefit.
2
If the employer pays any part of the premium, regardless of the amount.
If you have any comments or questions about this Bulletin, please email them to: bulletin@ssq.ca.
The texts presented in this document are the responsibility of the various government bodies that produce them. In the event of
a discrepancy, the original texts in the laws and regulations will take precedence over the information provided in this Bulletin.
SSQ Insurance
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