|
DATE: November 30, 2005
TO: Compensation Managers
Heads of Human Resources
Participating Separate employers
Plan Members
Purpose
The purpose of this notice is to inform plan members and employers
participating under the Public Service Management Insurance Plan (PSMIP) of
increases in the premium rates for two lines of insurance and premium holidays
for five lines of insurance effective January 1, 2006.
Background
Each year, the PSMIP Board of Trustees reviews the financial operation of the
Plan. Based on this review, the Trustees make recommendations to the Treasury
Board for the changes necessary to ensure that the plan is financially sound and
continues to operate in the best interest of plan members.
On October 17, 2005, the Treasury Board approved the recommendation of the
Board of Trustees to implement the following premium rate increases and premium
holidays effective January 1, 2006:
Long Term Disability (LTD)
An increase in the monthly premium from $1.12 to 1.40 per $1,000 of insured
coverage.
The cost sharing for the Long-Term Disability (LTD) premium remains on an
85/15 basis; as a result, the employer portion of the LTD premium will increase
from $0.952 to $1.19 and the employee portion will increase from $0.168 to
$0.21.
Main Plan (Employee-paid)
A 12-month premium holiday for Accidental Death and Dismemberment.
Executive Plan
(employer-paid).
A 12-month premium holiday for Accidental Death and Dismemberment and
Dependants Insurance.
An increase in the monthly premium for Post-Retirement Life Insurance from
$1.45 to $1.92 per $1,000 of coverage
Members of Parliament Plan
(government-paid)
A 12-month premium holiday for Accidental Death and Dismemberment.
Judges Plan
(government-paid)
A 12-month premium holiday for Basic Life.
Notice to Employees and Premium Rate Chart
The premium holidays will remain in effect for the calendar year 2006.
The premium holidays and rate increases apply to the above-noted lines of
insurance only. Attached is a chart showing the premium rates for all
lines of insurance effective January 1, 2006.
Please ensure that all members of the Plan are provided with a copy of this
bulletin, including the attached chart.
Administrative Information
Participating employers with their own pay facilities are required to
ensure that premiums remitted to Industrial Alliance during 2006 are in
accordance with the information on the rate chart.
Enquiries about the PSMIP
Employees with questions about their coverage under the PSMIP should contact
their pay and benefits specialist.
Chiefs of Compensation at the corporate level may call Terry Ranger at
(613) 941-4463
Phil Charko
Assistant Secretary
Pensions and Benefits Sector
|
