Band Employee Benefits
The purpose of this program is to provide funding to eligible First Nation, Inuit or Innu employers to support the cost of the employer's share of contributions to pension plans for eligible employees. These may include the costs of employer sponsored pension plans, the Canada/Quebec Pension Plan and additional non-statutory employee benefits.
Program History / Background
Band Employee Benefits (BEB) is one component of First Nation Indian Government Support Funding Programs. The other components are the Band Support Funding, Tribal Council Program, Band Advisory Services, Professional and Institutional Development.
This program operates under broad authorities provided by the Department of Indian Affairs and Northern Development Act, the Pension Benefits Standards Act 1985 (PBSA 1985) and the Income Tax Act. The Program is resourced through annual Parliamentary appropriations and operates under Treasury Board authorities.
Description of Operations
Aboriginal Affairs and Northern Development Canada (AANDC) has provided funding to support the employer's share of eligible First Nation employer pension contributions since 1984. The program complemented the devolution process by providing access to pension regimes for employees of First Nation, Inuit or Innu organizations, who may have previously worked for the Government of Canada to deliver the same program or service (for example, a teacher, as a result of devolution, becomes an employee in a First Nation operated school). The current BEB Program was introduced in the late 1980's.
BEB funding is available for some but not all employees of a First Nation or First Nation organization who may be participating in a pension plan. An eligible employee must be engaged in delivering services for an eligible program (defined as a program formerly delivered by AANDC or Health Canada, provided that no funding for employee benefits is directly funded by the program - capital projects and profit oriented organizations are excluded). This does not include employees who are providing services via contracts, or a person who may be acting as a member of a board of directors of an incorporated entity. Pension plans nevertheless must be open to all employees, regardless of the source of funding.
To receive BEB funding, pension plans must be designed to meet the requirements of Revenue Canada Taxation (for CPP/QPP) and the PBSA 1985 administered by the Office of the Superintendent of Financial Institutions. To remain in good standing and receive continuing funding from the BEB Program, employers must submit periodic reports to meet conditions of AANDC, the Income Tax Act and the PBSA, 1985.
Subject to Parliamentary appropriations, funding may be provided to support:
- the employer's share of CPP/QPP for eligible employees;
- the employer's share of an employer sponsored pension plan for eligible employees to a defined maximum level of contribution;
- the employer's costs of a non-statutory benefits plan (such as supplementary health and dental benefits, group life insurance or disability insurance) for eligible employees up to a defined maximum level of contribution; and
- professional fees and administration costs.
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