Treasury Board of Canada Secretariat - Government of Canada

Information concerning the Pensioners’ Dental Services Plan (Advance Notice to Compensation Advisors)

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

Date Modified: 2006-03-13