FEDERAL REG

SOR/2017-120: Canada Pension Plan Regulations and Repealing the Canada Pension Plan (Social Insurance Numbers) Regulations — Regulations Amending Canada Pension Plan

REGISTRATION OF FEDERAL REGULATION - VIA PART II OF THE GAZETTE

Registered
June 2, 2017


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues The Standing Joint Committee for the Scrutiny of Regulations (the SJCSR) has raised concerns over certain provisions in the Canada Pension Plan (Social Insurance Numbers) Regulations (CPP [SIN] Regulations) suggesting a correction and the repeal of some sections which serve no legislative purpose. The iss... (Click for more)


Published on June 15, 2017

Bill Summary

SOR/2017-120: Canada Pension Plan Regulations and Repealing the Canada Pension Plan (Social Insurance Numbers) Regulations — Regulations Amending Canada Pension Plan

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Issues The Standing Joint Committee for the Scrutiny of Regulations (the SJCSR) has raised concerns over certain provisions in the Canada Pension Plan (Social Insurance Numbers) Regulations (CPP [SIN] Regulations) suggesting a correction and the repeal of some sections which serve no legislative purpose. The issues outlined by the Committee generated a second look at all of the provisions in the CPP (SIN) Regulations. It was determined that once the changes suggested by the SJCSR are made, little in the way of relevant provisions will remain. Therefore, it is proposed that the CPP (SIN) Regulations be repealed and that the Canada Pension Plan Regulations (CPP Regulations) be amended to add only those provisions that remain relevant and necessary. Background The CPP (SIN) Regulations were introduced in conjunction with the Canada Pension Plan (CPP) in 1965. The CPP (SIN) Regulations relate to the assigning of a Social Insurance Number (SIN) to ensure that employees contribute to the CPP. The provisions have remained essentially the same since that time, except for minor housekeeping amendments. Legislative amendments (The Jobs, Growth and Long-term Prosperity Act amending the Department of Human Resources and Skills Development Act, Employment Insurance Act and the CPP) were made in June 2012, resulting in the discontinuation of the production of the plastic SIN card. Since the Minister of Employment and Social Development and the Minister of National Revenue would no longer be obligated to issue SIN cards, consequential amendments were made to the CPP (SIN) Regulations on April 26, 2013. On August 22, 2013, the SJCSR began writing to Employment and Social Development Canada (ESDC) about the CPP (SIN) Regulations. Specifically, the SJCSR suggested amending section 2, as there is a discrepancy between the English and French versions of the definition of “local office of the Commission” and repealing sections 4 (Sources of Application forms) and 6 (Duties of Employer) as they serve no legislative purpose. The SJCSR concerns generated a second look at all of the provisions in the CPP (SIN) Regulations. It was determined that once the changes suggested by the SJCSR were made, little in the way of relevant provisions would remain. Therefore, in addition to the changes recommended by the SJCSR, and as a result of ESDC’s analysis, other sections such as section 2 (Interpretation), section 3 (Manner of Making an Application) and section 5 (also Duties of Employer) are proposed for repeal, as these sections do not serve a legislative purpose either. Employer Duties The employer’s duties as described in section 5 of the CPP (SIN) Regulations state that an employer shall provide the employee with the appropriate form to apply for a SIN or card if the employer determines that the employee does not have a SIN, has changed their name, or has lost their SIN or if it has been destroyed. Section 5 is administrative in nature and does not serve a legislative purpose. The responsibility for obtaining a SIN, in order to be able to work and obtain services and benefits in Canada, has now shifted from employers to employees. As indicated in section 6 of the CPP (SIN) Regulations, in cases where an employee fails to inform their employer of their SIN within the period set out in subsection 98(6) of the CPP, the employer shall, within three days after the expiry of the period, report the circumstances of the failure to the local office of the Commission and provide it with the information necessary to identify the employee. When an employee does provide their SIN the employer shall immediately notify the local office of the Commission. This provision is duplicated in the Employment Insurance Regulations section 89. Since the requirement to apply for a SIN is the responsibility of the employees, as defined under subsection 89(1) of the Employment Insurance Regulations, the onus now falls on them, rather than the employer, to ensure they obtain a SIN. Objectives The intended objective of this amendment is to ensure a more effective, efficient, and accountable regulatory framework, to streamline regulatory requirements, and to improve clarity and understandability. Description The CPP (SIN) Regulations are repealed and those provisions that remain relevant and necessary will be added to the CPP Regulations. The provisions to be added to the CPP Regulations, sections 7 and 8 of the CPP (SIN) Regulations, relate to the authority of the Minister of Employment and Social Development and the Minister of National Revenue to authorize the assignment of a SIN and to authorize the issuance of a card. “One-for-One” Rule The “One-for-One” Rule is applicable to this proposal, as it would result in the removal of one title under the Rule. Small business lens The small business lens is not applicable to this proposal, as there are no costs for small businesses. Small businesses would benefit from a more streamlined and accountable regulatory framework. Consultation Preliminary consultations with other regulators with similar regulations have not revealed concerns over a proposal to repeal. ESDC has liaised with all of these partners to ensure there are no concerns surrounding this regulatory initiative. ESDC did not undertake a proactive stakeholder engagement strategy given that no impacts are expected. However, ESDC provided stakeholders with an opportunity to comment on the proposed approach through the publication of a Notice of Intent on February 18, 2017 (http://www.gazette.gc.ca/rp-pr/p1/index-eng.html), followed by a 30-day public comment period. No comments were received. Rationale The proposed amendments are housekeeping in nature and impact provisions of the CPP (SIN) Regulations that have been mostly untouched since they were introduced with the CPP in 1965. The provisions proposed to be repealed have no legislative purpose or are no longer necessary and relevant. Furthermore, these regulations are a duplication of requirements which also exist in the Employment Insurance Regulations. Those provisions which continue to hold relevancy are to be added to the CPP Regulations. Those two provisions, namely, sections 7 and 8 of the CPP (SIN) Regulations, relate to the authority for the Minister of Employment and Social Development and the Minister of National Revenue to authorize the assignment of a SIN and to authorize the issuance of a card. Contact Marianna Giordano Director CPP Policy and Legislation Seniors and Pensions Policy Secretariat Employment and Social Development Canada 140 Promenade du Portage, Phase IV, 8th Floor Gatineau, Quebec K1A 0J9 Telephone: 819-654-1672 Fax: 819-953-9298 Email: [email protected] Footnote a S.C. 2012, c. 19, s. 233(1) Footnote b R.S., c. C-8 Footnote 1 C.R.C., c. 385 Footnote 2 C.R.C., c. 386

This Bill does not amend any statutes.

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