Employment Insurance for all Adoptive Parents (EI)

Parents who adopt a child and who are eligible for EI can claim the benefit regardless of the child's age. EI is available for all children, regardless of the age when they join their family. Unfortunately, adoptive parents only receive 35 weeks of EI. Biological parents receive 50. In 2005, this policy was challenged by one of AFABC's members at the Federal Court of Canada. The judge did not rule in her favour. For more infomation on this case, click here.

Some employers top-up parental leave for their employees who are new parents. Once again, many exclude adoptive parents. Some adoptive parents have successfully challenged this unequal treatment, and their employer has agreed to harmonize the treatment of adoptive and biological parents. Many others are still fighting for equal treatment. If you live in BC and need information on this topic for your employer, please e-mail info@bcadoption.com. Visit our articles section for more information on EI and adoption. Click here to view a letter that you can give to your employer outlining the arguments for equal benefits for adoptive parents. You can also use the material to prepare your own letter.

June 2009. MP introduces Private Member's Bill on EI and adoption

Peter Julian (Burnaby-New Westminster) has introduced a Private Member’s Bill in the House of Commons, Bill C-413, An Act to amend the Employment Insurance Act and the Canada Labour Code (extension of benefit period for adoptive parents). The bill would amend the law to give adoptive parent the same number of weeks of leave from work as the biological parent of a new-born child.

“Adoption is an important and essential act in a compassionate and just society” said Julian. “This is a question of fairness, yes- adoptive parents deserve the full benefits of biological parents because their love and devotion to their children is equal to that of any parent- but it is also a question of taking a common sense step to make adoption a more supportive process.”

Under the current Employment Insurance program, adoptive parents are given 35 weeks of paid leave and a further 15 of unpaid leave afterwards. Under the law, biological parents are given both the first 35 weeks and the latter 15 as paid leave. The bill would install parity between adoptive and biological parents in this regard. Recent studies of adoptive parents have shown that many would have liked to have the 15 paid in order to help them better support their children.

“Adoptions in Canada are often expensive, lengthy and very stressful” stressed Julian. “Such changes to the EI system are worthwhile because we all have a duty to support and encourage adoption.”

Please support Peter Julian's bill. Contact him at juliap1@parl.gc.ca

Find more information on the bill at http://www2.parl.gc.ca/Sites/LOP/LEGISINFO/index.asp?Language=E&query=5866&List=toc 

Adoption Tax Deductions

Championed by Jay Hill MP, the February 2005 Federal Budget finally recognized some of the costs of adoption by introducing a non-refundable, adoption tax credit. Though adoptive parents were initially elated by the news, this was soon followed by disappointment when the level of credit was revealed. The maximum amount of credit, depending on what the parent or parent spends, is $1,600. Next to the real cost of adoption, and what this initiative will cost the Canadian government ($5 million a year), this amount seems stingy.

For more information, go to:
http://www.cra-arc.gc.ca/tax/individuals/topics/income-tax/return/completing/deductions/lines300-350/313/menu-e.html

Provincial Adoption Tax Credit

The government of British Columbia announced two provisions in the 2007 provincial budget which will benefit BC’s adoptive families.

The Adoption Expense Tax Credit recognizes some of the costs of adoption. The credit is effective for the 2007 and subsequent tax years. It will be harmonized with the federal adoption expense tax credit and calculated using the same expenses used to calculate the federal credit, but with the provincial non-refundable tax credit rate. The maximum expense that can be claimed is $10,445 for 2007 (indexed to inflation) and will provide parents with a provincial personal income tax reduction of up to $595 for 2007.

The BC government also announced a provision for a Children’s Education Fund which will help young people meet their post-secondary skills development needs and learning in the future. Beginning in 2007, $1000 will be invested for each new child born or adopted in BC. The grant will be available to any child born on or after January 1, 2007. Eligible beneficiaries will be able to apply for the benefit at the time they enter a qualifying post-secondary institution as long as they are 26 years of age or younger. There will be no need to register and keep track of each child upon birth or adoption.

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