Minister Solberg appoints the Nominating Committee Chair for the new Canada Employment Insurance Financing Board
OTTAWA, ONTARIO, July 21, 2008 - The Honourable Monte Solberg, Minister of Human Resources and Social Development, today announced the appointment of John A. MacNaughton as Nominating Committee Chair for the new Canada Employment Insurance Financing Board. The three-member Nominating Committee will identify candidates for appointment to the Canada Employment Insurance (EI) Financing Board.
"Mr. MacNaughton's prior experience as the founding president and CEO of the Canada Pension Plan Investment Board and experience in the financial sector and in corporate governance will be tremendously valuable in ensuring the most qualified individuals are nominated to manage decision-making on the financing of the EI program" said Minister Solberg.
The Canada Employment Insurance Financing Board is a small Crown corporation that will be responsible for:
- implementing an improved EI premium rate-setting mechanism that will ensure that EI revenues and expenditures break even over time;
- managing a new bank account, separate from the Government's general revenues, where any excess EI premiums from a given year will be held and invested until they are used to reduce premium rates in subsequent years; and
- maintaining a $2-billion cash reserve as a contingency fund that will support relative premium rate stability.
The Government will continue to be responsible for EI benefits and program delivery.
"The Government is delivering on its Speech from the Throne commitment to improve the governance and management of the Employment Insurance Account," said Minister Solberg. "These changes are in keeping with our government's commitment to good management and represent important improvements that will benefit workers and their employers."
A member of the Order of Canada, Mr. MacNaughton has extensive experience in banking, finance and governance. He was appointed Chairman of the Board of Directors of the Business Development Bank of Canada (BDC) Board of Directors in August 2007 and spent 31 years with Nesbitt Burns Inc. and its predecessor companies. The other members of the Nominating Committee are the EI Commissioner for Employers, Mr. André Piché, and the EI Commissioner for Workers, Ms. Patricia Blackstaffe.
"I am honoured to have been asked to assist in creating a board of directors that will ensure effective governance of this important new entity," said John MacNaughton. "I look forward to working with my committee colleagues, the EI commissioners for employers and workers, to achieve this goal."
The Nominating Committee will deliver its list of candidates to Minister Solberg. Following the Minister's recommendations, directors for the Canada Employment Insurance Financing Board will be appointed by the Governor in Council.
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For further information (media only):
Lesley Harmer
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FACT SHEET 1
Minister Solberg appoints the Nominating Committee Chair for the new Canada Employment Insurance Financing Board
July 21, 2008
The Honourable Monte Solberg, Minister of Human Resources and Social Development has announced the appointment of Mr. John A. MacNaughton as the Nominating Committee Chair for the new Canada Employment Insurance Financing Board. The three-member Nominating Committee will identify candidates for appointment to the Canada Employment Insurance (EI) Financing Board.
Mr. MacNaughton has been Chairman of the Board of Directors of the Business Development Bank of Canada (BDC) Board of Directors since August 2007. He served from 1999 to 2005 as the founding president and CEO of the Canada Pension Plan Investment Board (CPPIB), a Crown Corporation created by an Act of Parliament to manage the assets of the Canada Pension Plan.
Previously, Mr. MacNaughton spent 31 years with Nesbitt Burns Inc. and its predecessor companies, serving as president of Burns Fry and then Nesbitt Burns from 1989 to 1999. Mr. MacNaughton is the chairman of Canadian Trading and Quotation System Inc. and vice chairman of the University Health Network. An Institute of Corporate Directors certified director; he serves on the boards of Nortel Networks Corporation and TransCanada Corporation. He is a member of the Order of Canada.
FACT SHEET 2
Canada Employment Insurance Financing Board
July 21, 2008
The Honourable Monte Solberg, Minister of Human Resources and Social Development (HRSD), has announced the appointment of Mr. John A. MacNaughton as the Nominating Committee Chair for the new Canada Employment Insurance Financing Board (CEIFB). The three-member Nominating Committee will also include the Employment Insurance (EI) Commissioner for Employers, Mr. André Piché, and the EI Commissioner for Workers, Ms. Patricia Blackstaffe. The Committee will propose candidates to the Minister for board of director appointments to the Canada Employment Insurance Financing Board.
The Canada Employment Insurance Financing Board is a small Crown corporation established by the CEIFB Act that came into force on June 20, 2008. The CEIFB reports to Parliament through the Minister of Human Resources and Social Development.
The creation of the CEIFB improves the governance and management of the EI Account. Pursuant to the CEIFB Act and amendments to the EI Act, the CEIFB will be responsible for:
- Implementing an improved EI premium rate-setting mechanism that will ensure that EI revenues and expenditures break even over time;
- Managing a separate bank account where any excess EI revenues from a given year will be held and invested until they are used to reduce premium rates in subsequent years; and
- Maintaining a $2-billion cash reserve as a contingency fund in order to support relative premium rate stability within legislated parameters.
The CEIFB is to be governed by a board of seven directors, including a chairperson, who will be appointed by the Governor in Council on the recommendation of the Minister of HRSD, and hold office during good behaviour. Officers of the CEIFB that are specified in the legislation include the chief executive officer and the chief actuary.
The Nominating Committee will deliver a list of proposed candidates to the Minister of HRSD and, following the Minister's recommendations, the board of directors for the Canada Employment Insurance Financing Board will be appointed by the Governor in Council.
With the CEIFB taking on the responsibility for EI premium rate setting, the EI Commission will retain its other responsibilities for supporting the EI appeal system, making regulations with the approval of the Governor in Council, and reviewing and approving policies related to program administration and delivery. The EI Commission has also been given an ongoing mandate to continue the EI Monitoring and Assessment Report as a permanent annual report, in addition to its members becoming part of the Nominating Committee.
Human Resources and Social Development Canada will continue to have responsibility related to EI benefits and, through Service Canada, for program delivery to ensure that the EI program remains responsive to the needs of Canadians and that it is delivered efficiently and effectively.
For further information on the EI program, please visit the following Web site: http://www.hrsdc.gc.ca/en/employment/ei/index.shtml./
