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Current Event…Quebec introduces new Parental Insurance Plan

As of January 1, 2006, Quebec parents can take advantage of a new provincial plan replacing maternity and paternity benefits previously provided by the federal employment insurance program.

Some new features of the Quebec plan include:

• eligibility of self-employed parents;
  
• paternity benefits intended exclusively for fathers;
  
• elimination of the two-week wait to obtain access to benefits;
  
• increased benefits (up to 75% of average weekly employment or business income up to a maximum
  $ 57,000).

Below, Éducaloi explains what you need to know about this new plan, your eligibility, the types of benefits offered, and the application procedure.

Who is covered by the new parental insurance plan ?

The plan is designed for both biological and adoptive parents, whether they are employees or self-employed, who take a maternity, paternity or parental leave or interrupt their business activities to spend time with a new baby or adopted child.

Parents who were already receiving maternity or paternity benefits before January 1, 2006 or whose child was born or adopted before this date will continue to receive benefits calculated under the old federal employment insurance program.

The new plan also offers additional financial support for families whose net family income is under $ 25,921.

Who is eligible for the plan?

In order to be eligible for the plan, you must:

• be the parent of a child born or adopted on or after January 1, 2006;
  
• be a Quebec resident at the beginning of the benefit period (and, if you’re self-employed, at least since December 31, 2005 of the previous year);
  
• have an insurable income of at least $ 2,000 (this is regardless of the number of hours worked if you’re a salaried worker);
  
• have experienced a reduction of at least 40% in your usual weekly employment income, or in the time spent on your business activities.

What are the benefits offered?

Four types of benefits are available:

• maternity benefits;
  
• paternity benefits;
  
• parental benefits;
  
• adoption benefits.

Parents can choose to receive their benefits for a longer duration at a smaller income replacement rate (this is called the “basic plan”) or for a shorter duration at a higher rate (“special plan”).

The choice is determined by the first parent to receive benefits (often the mother), and binds the other parent. It is not possible to switch plans even if the couple breaks up. It is therefore important to reach an agreement on this subject.

The following table, taken from the Régime québécois d’assurance parentale website  (http://www.rqap.gouv.qc.ca ), illustrates the differences between the two plans regarding the average income replacement rate and maximum number of benefit weeks.

What is special about each type of benefit?

Maternity benefits are for the mother only and cannot be shared between the two parents. These benefits are paid as provided by the law on maternity leave, that is, not earlier than on the 16th week before the anticipated delivery and not later than 18 weeks after delivery (some exceptions apply).

Paternity benefits are for the father only. He cannot transfer them to the mother if he chooses not to take them. These benefits are paid from the week of birth at the earliest until the 52nd week following the birth at the latest (some exceptions apply).

Parental benefits can be taken by either parent or shared by both, based on an agreement between the two. In addition, parents may take these weeks simultaneously or consecutively from the week of birth to the 52nd week following the birth.

Finally, adoption benefits can be taken by either parent or shared by both, based on an agreement between the two. In addition, parents may take these weeks simultaneously or consecutively beginning the week of the child’s arrival at the earliest or, in case of adoption outside Quebec, two weeks before the child’s arrival. These benefits end the 52nd week following the arrival of the child, at the latest.

How do I apply for benefits?

Before applying, you should first make sure you are eligible, have the required information  (http://www.rqap.gouv.qc.ca/demande-de-prestations/renseignements-necessaires_en.asp) ready, and have chosen the benefit plan that best meets your needs.

Once all of these conditions are met, there are two ways to apply:

• by using Quebec Parental Insurance Plan online services at www.rqap.gouv.qc.ca (http://www.rqap.gouv.qc.ca); or
  
• by calling the Quebec Parental Insurance Plan customer service centre at 1 888 610-RQAP (7727).

Information about the new plan as well as a benefit calculator (SimulRQAP) are available at the RQAP website: www.rqap.gouv.qc.ca  (http://www.rqap.gouv.qc.ca).