Benefits Update #17

July 15^th , 2005 

At the June 22, 2005 Policy & Procedures Committee meeting, representatives reviewed our SunLife benefits annual rate renewal information.

1. Health & Dental rates declined: Due to lower usage, our rates were decreased by about 14% for both Health and Dental coverages.

2. Life Insurance rates increased:  The average age of our employee group increased over the past few years and our insurance rates have risen this year to reflect that.  Monthly premiums are now $6.60 per employee, up from $5 per employee, for $50,000 in life insurance coverage.

3. Long Term Disability: We have experienced increase use of the Long Term Disability plan over the last three years.  Our premiums have increased again this year, up by 28.5%.  This will increase your LTD deduction by between $10 and $20 per month, depending on your monthly income.  Our premiums are now about average for our sector, when previously, we had rates that were about 50% lower than most other agencies.

3. Medical Services Plan coverage: Last year, we implemented an employee deduction to cover $54 per month of the MSP Premiums per employee. This allowed us to maintain most of our benefits coverages within our budgeted benefits coverage.  Because of the decline in the Health and Dental premiums, we are reducing our MSP Employee Contribution. Effective July 1, 2005, all employees will pay $27 per month ($13.50 per cheque) for their Medical Services Plan coverage.  This is a $27 per month decline in the employee contribution. 

4. Premium Assistance:  The Provincial Government provides premium assistance (reduced MSP Premiums) if your net taxable income in 2004 was less than $28,000.00.  The taxable income level is higher for families and those who have a person with a disability in their family.  If you think you may qualify for premium assistance, contact Dori at the Spectrum office for an application form and more information: Dori.Jaffe@SpectrumSociety.org  For those employees who have been on Premium Assistance for the past year, many of you are back on regular premiums this month, either because your 2004 taxable income raised you above the eligibility threshold, or because you have not yet filed your 2004 income tax forms with Revenue Canada.

4. Group RRSP: Spectrum will maintain the three tiers of our current Group RRSP plan:

To get a Group RRSP application form, call the office.  To raise your current RRSP contribution, just put it in writing (paper or email) and send to paystub@spectrumsociety.org