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1 |
PURPOSE |
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1.1 |
The purpose of this Directive is to provide Personnel Offices with information on recent changes to the Supplementary Death Benefit (SDB) Regulations. These changes will allow employees who are entitled to an immediate Annual Allowance (reduced or unreduced) to elect to continue their SDB coverage at the regular contribution rates, subject to certain conditions. |
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2 |
POLICY |
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2.1 |
The SDB Regulations were amended effective April 1, 1995 to allow employees who choose an Annual Allowance (AA) to elect to retain their SDB coverage at the regular contribution rates. |
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2.2 |
This provision will be available to all SDB participants under the Public Service Superannuation Act, who are eligible for, and opt to receive an AA that is payable not later than 30 days after ceasing to be employed. |
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2.3 |
In order to access this SDB coverage, eligible employees must elect for the coverage within one year prior to, or 30 days after terminating employment. The coverage is not automatic; an election must be made within the appropriate time limits. |
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2.4 |
These elective participants will not be entitled to the $5,000.00 paid up coverage at age 65 and coverage will reduce to "nil" at age 70. |
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3 |
PROCEDURES |
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3.1 |
The employee must complete the election form PWGSC-TPSGC 2017 "Election to Continue SDB Coverage". It is now available through your regular source of supply. |
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3.2 |
The election must be completed within one year prior to, or within 30 days after ceasing to be employed. The employee must have at least 5 years of substantially continuous employment in the Public Service, or 5 years of SDB participation to be eligible to make an election. |
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3.3 |
SDB coverage is based on the coverage in effect at the employee's termination date. Coverage (and premiums) reduce by 10 % each year from age 61 on. Participants receiving an AA are not entitled to the $5000.00 "paid up" coverage at age 65. In addition, at age 70, the coverage reduces to "nil". |
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3.4 |
The premium rate for SDB participants retiring with an Annual Allowance (AA) (with or without a waiver of reduction) payable within 30 days of SOS, will be 5 cents per $250.00 of coverage. |
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3.5 |
Payment of SDB contributions at the "commercial" premium rates will continue to apply for other elective participants, such as those entitled to a deferred pension, an Annual Allowance (AA) payable more than 30 days after SOS, or a return of contributions. |
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4 |
INQUIRIES |
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4.1 |
Any request for information regarding the foregoing should be addressed to your PWGSC Client Services Centre as per Compensation Directive 1994-039 dated October 6, 1994. |
