The 2024 Federal Budget was released on April 16, 2024. Below are the highlights related to Group Benefits.
Pharmacare
- A commitment to create a National Pharmacare Plan providing single-payer coverage for contraceptives and diabetes medications, with a $1.5 billion funding allocation over five years
- New federal funding will expand and enhance, rather than replace, existing provincial and territorial spending on public drug benefit programs
- The $1.5 billion does not include the cost of diabetic supplies included in the Pharmacare bill
- The provinces would be the first payer under the federal Pharmacare plan
Disability Benefits
In June 2023, the Government passed the Canada Disability Benefit Act, which creates the legal framework for a direct benefit for low-income working-age persons with disabilities.
- Budget 2024 allocates $6.1 billion in funding over six years, beginning in 2024-25, and $1.4 billion annually ongoing for the benefit
- The document outlines payments to eligible Canadians totalling no more than $2,400 a year starting in July 2025
Housing measures
- Home Buyers' Plan (HBP) withdrawal limit will increase from $35,000 to $60,000
- First-time home buyers purchasing newly constructed homes are now eligible for 30-year mortgage amortizations
- Intention to restrict the purchase and acquisition of existing single-family homes by very large corporate investors
Canada Pension Plan (CPP)
Budget 2024 announced a stronger Canada Pension Plan (CPP). In coordination with provincial partners, the Federal Government proposes to make technical amendments to the CPP legislation. These amendments would:
- Provide a top-up to the Death Benefit for specific contributors
- Introduce a partial children's benefit for part-time students
- Extend eligibility for the disabled contributors' children's benefit when a parent reaches age 65
- End eligibility for a survivor pension to people who are legally separated after a division of pensionable earnings
For complete details about the 2024 Federal Budget, visit Budget 2024 (canada.ca).
Have questions? Reach out to a Cowan consultant to get your answers.