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DATE: February 14, 2006
TO: Compensation Managers
Heads of Human Resources
Participating Separate employers
Subject: Information concerning the Pensioners' Dental Services
Plan (Advance Notice to Compensation Advisors)
The purpose of this Information Notice is to inform you in advance of the
upcoming amendments to the Pensioners' Dental Services Plan (PDSP). Please
note that this information has not yet been announced and should not be
distributed for purposes other than advance notice to Compensation Advisors of
your organization.
The PDSP is a voluntary dental services plan established by the Government of
Canada on January 1, 2001. It provides dental services coverage to
eligible federal pensioners and their eligible family members, including
survivors. The following plan changes will come into force effective
April 1, 2006:
- the PDSP member contribution
rates will be reduced;
- PDSP Rules have been amended and
include some minor plan improvements.
Reduction in member contribution rates
We are very pleased to announce that member contribution rates will be
reduced. The following table sets out the changes to the member monthly
contribution rates effective April 1, 2006.
|
Category
|
Jan. 1,
2001
|
April 1,
2006 |
| I |
Pensioner only |
$16.00 |
$12.50 |
II
|
Pensioner and one eligible family
member |
$31.96 |
$25.50 |
| III |
Pensioner and more than one eligible family
member |
$47.96 |
$36.20 |
Amendments to the PDSP Rules
Enrolment deadlines have been removed. Effective April 1, 2006:
- Pensioners who enrol within 60 days of their effective retirement date
will become members from that date. This will ensure continued dental
coverage upon retirement.
- Pensioners who did not choose to enrol in the PDSP within the initial 60-day
period after their retirement date may now apply at any time. In this
case, coverage will start the first day of the second month following the date
the duly completed and signed form is received.
- In both of these cases, pensioners must remain members for at least three
full calendar years; and if they leave the PDSP voluntarily, they cannot become
members again.
- Contribution rates will be required from the first full month of retirement.
If the retirement effective date is other than the first of a month, deductions
will start the first of the following month.
There are other minor plan improvements that have been incorporated in the
new PDSP Rules.
Enrolment process
Effective June 1, 2006, the enrolment process will be administered by
Public Works and Government Services Canada (PWGSC). This means that
enrolment forms of the PDSP will form part of the retirement package for
employees who retire and will be forwarded to the designated Pension Office as
part of the retirement documentation.
PWGSC will distribute a Compensation Directive that will provide detailed
information on the revised procedures related to the PDSP enrolment process.
For more information, you may consult the following documents that will be
posted on the Treasury Board of Canada Secretariat Web site in early March
2006.
Phil Charko
Assistant Secretary
Pensions and Benefits Sector
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