What are EI benefits? What are special benefits?
Regular benefits are paid to eligible employees who lose their job through no fault of their own, JM. Typically, this would include those who are terminated because of a restructuring or those who work in seasonal industries.
Special benefits include parental benefits (maternity and parental leave), sickness benefits (for those who cannot work due to injury or illness), compassionate care benefits (for those caring for a seriously ill family member needing end-of-life care) or parents of critically ill children benefits (regardless of their age).
An optional retirement is not a qualifying reason for EI benefits, JM, because it does not fall into the special benefits categories and regular benefits are not meant to pay out to people who choose to stop working.
Can you get EI if you quit your job in Canada?
If your retirement, JM, is not your choice, you may qualify for regular benefits. Of note is that there are several reasons when quitting a job is considered “just cause,” but you must be able to substantiate to Service Canada that quitting was the only reasonable option.
These reasons may include:
- sexual or other harassment
- needing to move with a spouse or dependent child to another place of residence
- discrimination
- working conditions that endanger your health or safety
- having to provide care for a child or another member of your immediate family
- reasonable assurance of another job in the immediate future
- major changes in the terms and conditions of your job affecting wages or salary
- excessive overtime or an employer’s refusal to pay for overtime work
- major changes in work duties
- difficult relations with a supervisor, for which you are not primarily responsible
- your employer is doing things which break the law
- discrimination because of membership in an association, organization or union of workers
- pressure from your employer or fellow workers to quit your job
Can you receive EI and OAS and CPP?
If you do qualify for EI benefits, JM, your Old Age Security (OAS) pension won’t impact your eligibility for EI benefits, since it is an age-based pension that does not have to do with work or earnings. However, Canada Pension Plan (CPP) or Québec Pension Plan (QPP) benefits will, as they are pensions that are related to work and earnings. Likewise, with employer pension plans and even foreign pensions that arose from employment in another country.
CPP, QPP and employer pensions generally constitute “earnings” that reduce your entitlement to EI benefits and must be reported to Service Canada. These types of earnings are deducted from your EI benefits.
There is an impact on your EI if you have earnings while receiving it, whether from employment, self-employment, or CPP/OAS/workplace pension income. You lose $0.50 of your EI for every $1 you earn up to 90% of your previous weekly earnings. For earnings in excess, EI benefits get reduced dollar-for-dollar.
Jason Heath, CFP
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