Participation by a member of the company

Participation by a member of the company

When the company is recognized, the member of the company owes the being also.

The term "member of the company" designates:

OR

  • A person who is a partner in a partnership that is an employer;

OR

  • A person who is an administrator of a corporation that is an employer;

OR

The "member of the company" must already have participated in the insurance and pension plans as an employee.

An independent contractor is not considered a "member of the company" who can participate in the social benefits plans.

  • Identification of the Company
  • Voluntary Insurance
  • Loss of Right
  • Exclusions
  • Employers’ Participation in the Pension Plan

To be identified as an employer for the purposes of social benefits over the course of a given insurance period:

  • The company must have paid the $350 to register with the Commission de la construction du Québec (CCQ), if applicable;

AND

AND

  • Over the period of 12 consecutive months beginning 18 months before the insurance period in question, the company must have made at least five monthly reports declaring the hiring of at least one employee. If the company began operating during this 12-month period, at least one monthly report out of two must declare the hiring of at least one employee.

Example:

To be identified for the insurance period: The company must have made monthly reports during the period:
From July to December 2018 From January to December 2017
From January to June 2019 From July 2017 to June 2018
From July to December 2019 From January to December 2018
From January to June 2020 From July 2018 to June 2019

A member of the company may be insured voluntarily by paying the required premium to obtain coverage under plan A, if he or she meets the eligibility conditions.

However, this person may pay the premium only if:

  • He or she has not lost the right to participate in the insurance and pension plans;

AND

  • His or her company is identified as an employer for the insurance period in question or was for one of the two preceding insurance periods.

NOTE: A person who does not meet this last condition does not lose the right to participate voluntarily in the social benefits plans but is not eligible for the period under consideration. The person becomes eligible again when his or her company is recognized as an employer in a subsequent period.

The premium corresponds to the cost of 750 hours plus applicable tax, plus administrative costs. The hours accumulated during the reference period and those in the hour reserve are used to lower the amount to pay.

Example:For the insurance period from July to December 2019, a member of the company eligible for payment of the premium has worked 100 hours during the reference period and has 50 hours in the hour reserve. During the reference period from September 2018 to February 2019, one insurance hour cost $2.10.
Premium (750 hours x $2.10/hour) $1,575
Administrative costs + $ 103.21
Reference period hours (100 hours x $2.10/hour) - $210
Hour reserve hours (50 hours x $2.10/hour) - $105
Deduction of administrative costs for the 150 hours - $20.64
Amount to pay before tax = $1,342.57
Tax (9% x $1,342.57) + $120.83
Amount to pay to be insured under plan A = $1,463.40

In May and November, the Commission de la construction du Québec (CCQ) sends eligible "members of the company" a notice of insurability indicating the amount of the premium to pay to benefit from coverage under general plan A for the following insurance period. Hours worked as an employee over the reference period, declared and paid to the CCQ, lower the amount to pay.

Some restrictions apply to certain types of insurance coverage. For example, no salary insurance benefits are payable for total disability resulting from a work-related accident or an occupational disease if the member of the company is not covered by the Act Respecting Industrial Accidents and Occupational Diseases when this accident or occupational disease occurs. Similarly, the member of the company is not entitled to salary insurance benefits for the first 16 weeks following the beginning of the disability if he or she is not covered by the Employment Insurance Act. If the disability began before January 1, 2017, benefits are not payable for the first 17 weeks.

Other exclusions apply.

member of the company loses forever the right to participate voluntarily in the insurance and pension plans in the following two cases:

  • That person has already paid the premium required to be insured by plan A during a previous insurance period and is not insured by plan A for the period in question (a person who has accumulated 750 hours as an employee has nothing to pay and is considered to have paid the premium);

OR

  • That person has never paid the premium required in a previous period and is not insured under plan A, B, C, or D.

NOTE: A person who is not eligible to pay the insurance premium because his or her company is not identified as an employer does not lose the right to voluntary participation in the social benefits plans.

If, as a "member of the company", you lose your right to voluntary participation in the social benefits plans, the hours recorded in your file are used to give you the best possible coverage (plan A, B, C, or D). For example, if 450 hours were declared to the CCQ in your name for the reference period and you have lost your right to participate as a "member of the company", you will be insured under plan C.

After January 2007, when you lose your right to voluntary participation as a "member of the company", medication insurance coverage (plan Z) will be offered to you if:

  • You cannot be insured by plan A, B, C, or D for the period under consideration AND;
  • You are a "member of the company" for a company identified as an employer for the purposes of social benefits for the insurance period under consideration AND;
  • You are under 65 years of age before the beginning of the insurance period under consideration AND;
  • You pay the required premium before the deadline indicated on the insurability notice that is sent to you (in May or November).

A person may not participate voluntarily in the insurance plans as a member of the company in the following situations:

  • He or she is 65 years or older on the first day of the insurance period in question;
  • He or she has received at least one week of hour credits or benefits from insurance prolongation during the insurance period in question (the purpose of this condition is to prevent a disabled person from improving his or her insurance coverage by paying a premium).
  • He or she has lost the right to participate in the retirees insurance plan.
Members of the company eligible for payment of the insurance contribution and insured under plan A receive each fall a notice informing them that they may voluntarily participate in the pension plan if they are employed by the company with which they are associated. Except for hours worked as an employee, "members of the company" are not obliged to contribute to the pension plan. However, they may not participate solely in the pension plan.

Voluntary contributions by "members of the company" must not bring the total hours contributed to the pension plan to more than 2080 hours, including hours worked as an employee (including hours declared as a “designated representative registered as employee” and as a “paid administrator”).

Important notes:

  • Before participating voluntarily in the pension plan, "members of the company" should consult their accountant or tax lawyer to ensure that their contribution does not exceed the limits allowed by the Canada Revenue Agency (CRA);
  • Income Tax slips (T4, Relevé 1, etc.) reflecting a "member of the company’s" participation in the pension plan must be produced by his or her employer.

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