Slide Deck for Service Providers– Federal EI Part I Initiatives for Long-tenured Workers (SITI and EEITI)

1. Slide Deck for Service Providers– Federal EI Part I Initiatives for Long-tenured Workers (SITI and EEITI) Employment and Training Division Ministry of Training, Colleges and Universities

2. New Federal EI Part 1 Initiatives SITI- Severance Investment in Training Initiative and EEITI- Extended Employment Insurance and Training Incentive • Background • Severance Investment for Training Initiatives (SITI) • Extended Employment Insurance and Training Incentive (EEITI) • Comparison – SITI and EEITI • Key messages • Questions

3. BACKGROUND Federal Budget 2009 announced enhancements to EI Part I as part of Canada’s Economic Action Plan • New federal measures will provide long-tenured workers with earlier or extended access to EI Part I benefits if approved by MTCU to attend training. Long- tenured worker is an EI claimant who: • contributed at least 30% of the annual maximum EI contribution in at least 7 of the 10 calendar years prior to the establishment of the claimant’s benefit period; and, • Received no more than 35 weeks of EI Part I regular benefits in the 5 years prior to the establishment of the claimant’sbenefit period.

4. SITI and EEITI • The Severance Investment for Training Initiative (SITI) - allows earlier access to EI Part I regular benefits for long-tenured workers who have severance monies and invest in their own training using all or part of their severance package • The Extended EI and Training Incentive (EEITI) pilot project - provides up to BPC ( Benefit Period Commencement)+103 weeks (including 2 week waiting period) of EI Part I regular benefits to long-tenured workers while they are on longer-term training, including up to 12 weeks of benefits following training completion, to facilitate job search • Both measures will be implemented on May 31, 2009 and will be effective until May 29, 2010 • Both measures apply to long-tenured workers whose EI claims were established between January 25, 2009 and May 29, 2010 • Service Canada will send letters to EI claimants who are long-tenured workers providing information about SITI and EEITI and encouraging them to contact Employment Ontario to discuss training • Service Canada also sends letters to EI claimants who have an allocation of severance monies with details of the allocation. • Individuals must bring letters with them to Employment Ontario service provider

5. SITI and EEITI • SITI and EEITI are not training programs and do not require separate applications • SITI and EEITI are federal measures that affect the payment of EI Part I benefits for long-tenured workers approved by MTCU to attend training • MTCU approves individuals to attend training as Feepayers (no Part II financial assistance) or, under Ontario Skills Development (OSD) or Second Career • Feepayer, OSD and Second Career policies, guidelines, processes and applications will continue to apply • Financial discussions with individuals applying for training (Feepayer, OSD, Second Career) who have letters from Service Canada regarding SITI/EEITI will need to consider additional EI Part I benefits payable through SITI and EEITI • Service Canada will adjust EI claims after receiving Section 25 training approval from MTCU showing SITI/EEITI codes

6. Severance Investment for Training Initiative (SITI) • MTCU approves training based on guidelines and policies for Ontario Skills Development and Second Career. • Federal program policies define eligible training under SITI. Eligible training under SITI: • Full-time • Self-financed (Feepayer only in Ontario - no Part II) • Start within the claimant's 52-week benefit period; and • 10 weeks or longer, or, if the training is less than 10 weeks, the cost of tuition is at least $5,000, or 80 percent of the amount of the separation payments Note: 1) multiple training programs where individual programs are less than 10 weeks are eligible if total duration of programs is at least 10 weeks 2) if training is longer than 20 weeks may also be eligible for EEITI How does SITI help long-tenured workers? • Service Canada waives the allocation of separation monies and pays EI Part I benefits after receiving MTCU Section 25 approval showing appropriate training code in LMDA Access

7. SITI (cont’d) How does SITI help long-tenured workers? (cont’d) If referral to training is provided within required timeframes: • Long-tenured workers with claims established between January 25, 2009 and May 30, 2009 will have allocation remaining as of May 31, 2009 removed • Long-tenured workers with claims starting in period beginning May 31, 2009 and May 29, 2010 will have entire allocation removed MTCU must approve training and send notification to Service Canada: • During period separation monies are allocated, or, • Within 6 weeks following notice about allocation of separation monies if allocation period is less than 6 weeks • Letters sent by Service Canada to long-tenured workers state that they must receive referral to training within these timeframes (Note: “referral to training” is MTCU training approval notification sent to Service Canada)

8. Extended Employment Insurance and Training Incentive (EEITI) • MTCU approves training based on guidelines and policies for Ontario Skills Development and Second Career. • Federal program policies define eligible training under EEITI. Eligible training under EEITI: • Full time • 20 weeks or longer • Either self financed (Feepayer – no Part II) or under E.I. Part II (OSD or Second Career) • Starts within the claimant's 52-week benefit period (but not before May 31, 2009) In addition: • Training may start after May 29/10 if all other criteria are met • Multiple training programs where the individual programs are less than 20 weeks can be approved if the total of both courses is more than 20 weeks How does EEITI help long-tenured workers? • EI Part I benefits extended to maximum of 104 weeks ( BPC + 103 wks)which includes up to 12 weeks of EI after completion of training for job search

9. EEITI (cont’d) Job Search • Service Canada calculates extension of EI Part I benefits for job search • EI benefits can be extended for up to 12 weeks for job search after completion of training • Job search period equals 1 week for every 5 weeks of training completed up to maximum of 12 weeks • Job search weeks must be taken consecutively, and immediately following the final week of training Combination of SITI and EEITI Training of 20 weeks or longer can be approved under SITI to waive allocation of separation monies and under EEITI to extend benefit period up to the maximum of 104 weeks including job search period up to 12 weeks

10. EEITI (cont’d) MTCU must approve training and send notification to Service Canada: • Before August 23, 2009 if EI claim start date is between January 25, 2009 to May 30, 2009, or, • Within 20 weeks of EI claim start date if claim start date is on or after May 31/09 • Letters sent by Service Canada to long-tenured workers state that they must receive referral to training within these timeframes (Note: “referral to training” is MTCU training approval notification sent to Service Canada)

11. Comparison – SITI and EEITI

12. Comparison – SITI and EEITI (cont’d)

13. Key Messages • The new federal EI Part I measures for long-tenured workers do not change the training programs that MTCU approves for unemployed workers in Ontario. • MTCU continues to support individuals to attend training as Feepayers or through funding provided under Ontario Skills Development (OSD) or Second Career (SC). • Current policies, guidelines, processes and applications that are in place for Feepayer, Ontario Skills Development (OSD) or Second Career (SC) training continue to apply. • Based on the criteria applicable for these new federal EI Part I measures, Service Canada will amend the EI claims for long-tenured workers who are approved by MTCU to attend training as Feepayers, or under OSD or SC. • Service Canada will issue letters to EI claimants who qualify as long-tenured workers explaining the new measures and inviting them to contact Employment Ontario to discuss their training needs. • Clients must bring the letter from Service Canada identifying them as long-tenured workers to the Employment Ontario service provider.

14. Key Messages (cont’d) • Clients who have an allocation of separation monies (e.g. severance pay) must also bring their letter from Service Canada advising them about the allocation amount and allocation period. • Service Providers should advise clients to contact Service Canada if they have not brought letters or have specific EI questions about their claims. • Service Providers should assist these clients as they do all others who are interested in training. • Financial discussions with long-tenured workers should assume that Service Canada will adjust the EI claim based on enhancements that apply for SITI/EEITI (i.e. Service Canada will waive allocation of severance monies under SITI and/or extend EI Part I benefits up to maximum of 104 weeks under EEITI). • Based on the criteria applicable for these new federal EI Part I measures, Service Canada will amend the EI claims for long-tenured workers who are approved by MTCU to attend training as Feepayers, or under OSD or SC.

15. QUESTIONS