Resources

Benefits

CUPE Group Insurance Trust

CUPE Group Benefit Trust Meeting Summary December 9th 2015
Welcome: We welcome John Doucette from Local 1775. John has been Trustee in the past so we are very appreciative of his rejoining our group. We thank Mary Louise Richard for all that she has contributed to the Trust.

Review of Renewal Analysis: The renewal analysis was presented by our Mercer Rep.; Michael Horne. April 2016 proposed rates will have members seeing an increase in all areas. Bill 13 ‘Drug Cost Assistance Act’ has negatively impacted our Benefits plan which comes as no surprise. Since 2012 we have been providing the members with decreases.

• Health: Health rate will have a 44% increase. This will take us back to a little less than what our Health rates were in April 2012.

Year 2012 Year 2013 Year 2014 Year 2015 Year 2016
Health 12 month Rates Single $108.68 $102.38 $85.49 $72.67 $104.64
Health 12 month Rates Family $253.28 $238.59 $199.23 $169.35 $243.86
Health 10 month Rates Single $130.42 $122.86 $102.59 $87.20 $125.57
Health 10 month rates Family $303.94 $286.31 $239.06 $203.22 $292.63

Health 12 Month Employees
Single $31.97 increase Cost Shared with the Employer→ $15.99 increase per member $7.99 per pay
Family $74.51 increase Cost Shared with the Employer→ $37.26 increase per member $18.63 per pay

Health 10 Month Employees
Single $38.37 increase Cost Shared with the Employer→ $19.19 increase per member $9.59 per pay
Family $89.41 increase Cost Shared with the Employer→ $44.71 increase per member $22.35per pay
Year 2012 Year 2013 Year 2014 Year 2015 Year 2016
Health claims paid for… $1,520,415 $1,321,383 $1,383,946 $1,599,623 ———
Health claim usage predication for $1,683,810 $1,634,446 $1,361,024 $1,494,662 $1,671,606
• Basic Life and Dependent Life: Both will see a small increase. This increase is due to our aging membership.
12 months Basic Life Increase of $0.03 12 months Dependent Life Increase of $0.14
10 months Basic Life Increase of $0.03 10 months Dependent Life Increase of $0.17

• LTD: There will be a 9.5% increase in the LTD rate. LTD is currently 2.82% (cost shared with Employer). It will change to 3.07% (cost shared with Employer). At this time we have 18 members using LTD. Compared to other plans this LTD pricing is still a good rate.

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• Dental: The Dental rate will have a 2.8% increase. As you can see the last three years has had no change in the dental premium.
Year 2012 Year 2013 Year 2014 Year 2015 Year 2016
Dental 12 month Rates Single $39.95 $41.83 $41.83 $41.83 $43.00
Dental 12 month Rates Family $84.28 $88.24 $88.24 $88.24 $90.71
Dental 10 month Rates Single $47.94 $50.20 $50.20 $50.20 $51.60
Dental 10 month rates Family $101.14 $105.89 $105.89 $105.89 $108.85

Dental 12 Month Employees
Single $1.17 increase Cost Shared with the Employer→ $.59 increase per member $.29 per pay
Family $2.47 increase Cost Shared with the Employer→ $1.24 increase per member $.62 per pay

Dental 10 Month Employees
Single $1.40 increase Cost Shared with the Employer→ $.70 increase per member $.35 per pay
Family $2.96 increase Cost Shared with the Employer→ 1.48 increase per member $.74 per pay
Year 2012 Year 2013 Year 2014 Year 2015 Year 2016
Dental claims paid for… $538,797 $571,206 $582,185 $606,041 ————-
Dental claim usage predication for $528,828 $581,900 $605,478 $617,116 $636,343

Plan Enhancements:
As of January 1st 2016, we will have two Plan Enhancements. First, we will be adding Great West Life’s standard coverage for vaccines (Hepatitis A & B, influenza, meningitis, chicken pox/shingles, and human papilloma virus-HPV) with a lifetime maximum of $500 per person. Secondly, we will be adding coverage for TENS machine under medical supplies (1 TENS every 5 years with a maximum reasonable and customary of $500 plus a lifetime maximum of $700). You have to be treated for a chronic condition to be eligible for a TENS machine.

Members’ Concerns: Concerns were addressed and dealt with by the Trustees and Mercer Rep.

• Request to add Zostavax2: This Fall there has been numerous request for the addition of the vaccination for Shingles to our plan. After research and discussion by Trustees and Reps the decision was made to add it to the plan.

• Optional life insurance: Once you turn 50 years of age you should see an increase in premiums. You will receive a letter indicating this increase.

• Dental: Nitrous oxide (laughing gas) is covered under our plan.

• Registered Dieticians: Discussion was had if this should be added to the list of paramedical. It was felt that with dieticians at most Sobeys, Superstore and Hospitals that was not necessary to add it to our plan at this time.
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• LTD: There have been a few members inquiring about LTD. Either they are on it or trying to receive it. It is very important that you communicate with your Employer, Union and Johnson Insurance when out on LTD, considering LTD or in the process of receiving LTD.

If you are out on any extended sick leave then please contact your Employer, so you do not miss deadlines for filing for LTD and find yourself without an income. Even if you don’t think LTD is an option, please inquire and get directions as to your next step.

In the New Year, our website: www.mybenefitplan.ca will have the step by step process on ‘How to apply for long-term disability benefits.’ If you have questions or concerns then please ask, you have many different avenues available to you to find answers. If you do not understand something then ask your union Benefits’ Trustee to help you.

The date of the next meeting should April 20, 2016.

If you have any concerns then please contact your Local Trustee.

Robert Coughlin (r_d_coughlin@yahoo.ca) & Hughie MacDonald (902-566-1715) -Local 1145
John Doucette (johndoucette56@hotmail.com) & Roy Villard (rkvillard@edu.pe.ca) Local 1775
Cathy Carragher(cacarragher@edu.pe.ca) & Ann Ramsay(jaramsay@pei.sympatico.ca) -Local 1770
Adele Ryan(adele.ryan@pei.sympatico.ca) &Carolyn Vandaele(cavandaele@edu.pe.ca)-Local 3260
Paula Annear(pacollings@edu.pe.ca ) & Rebecca Gill (rjgill@edu.pe.ca) Employer Reps.

 

 

 

 

Pensions

PENSION REPORT

To: Pension Plan Members (includes CUPE Locals 1145, 1770, 1775, 3260)

From: PEI Education Sector Pension Plan Committee

Date: December 1, 2015

Re: Indexation of Benefits and Contribution Levels for 2016

This memo contains important information regarding the status of

your pension plan and the benefits it provides.

The Funded Ratio of the Plan at July 31, 2015 is above 100%

What this means to you in 2016.

Retirees and Surviving Spouses

Your monthly pension will increase by 0.85% (allowable inflation adjustment) effective January
1, 2016.

Active and Deferred Members

Benefits earned for service before July 1, 2007 will increase by 0.85% (allowable inflation
adjustment) effective January 1, 2016.

Active Members

Your contributions to the Plan for 2016 will remain at 8.2% of payroll.

Employer / Government contributions to the Plan for 2016 will remain at 8.2% of payroll.

Contribution rates are deemed sufficient to keep the Funded Ratio above 90% for the calendar
year 2016. No benefit reductions are required.

Indexation and contribution levels will vary annually based on the Funded Ratio of the Plan. We
will provide you with updates each year before any changes take effect. If you have any
questions, please contact a member of the Pension Committee:

Representing CUPE LOCAL 3260 – EDUCATIONAL ASSISTANTS, YOUTH SERVICE WORKERS,
STUDENT ATTENDANTS AND WORKPLACE ASSISTANTS:

Lori MacKay, 902-626-1112, lmackay@cupe.ca

Representing CUPE LOCAL 1145 – BUS DRIVERS:

Wanda Gaudet, 902-853-2578, wmgaudet@edu.pe.ca

Representing CUPE LOCAL 1775 – MAINTENANCE:

John Doucette, 902-628-6400, ixdoucette@edu.pe.ca

Representing CUPE LOCAL 1770 – ADMIN ASSISTANT:

Barb MacDonald, 902-368-6817, bamacdonald@edu.pe.ca

Representing Finance:

Terry Hogan, 902-368-4002, tmhogan@gov.pe.ca

Representing the Employer:

John Cummings, 902-368-6845, jacummings@edu.pe.ca

Representing Education, Early Learning and Culture:

Terry Keefe, 902-438-4880, tekeefe@gov.pe.ca

Representing Education, Early Learning and Culture:

Chris DesRoche, 902-438-4882, cmdesroche@edu.pe.ca

AT A GLANCE FOR 2016 Pension Plan

AT-A-GLANCE FOR 2016 Prince Edward Island Education Sector

Pension Plan

Terms in italics are defined at the end of the document.

WHEN MUST I JOIN THE PENSION PLAN?

You must join the Plan on the date you were hired. There were some exceptions for employees hired prior to July 1, 2007.

CURRENT CONTRIBUTIONS TO THE PENSION PLAN

EMPLOYER

8.2% of your earnings up to the YMPE

WILL EMPLOYEE CONTRIBUTION RATES CHANGE?

The employee contribution rate may change but will remain between 7.2% and 9.2%. Changes will not be made more than once per
year and is based on the annual Funded Ratio.

HOW IS MY PENSION CALCULATED?

Your annual basic lifetime pension is calculated as follows:

For each year prior to January 1,
1999

40% of your contributions

For each year between January 1,
1999 and June 30, 2007

1.4% of your earnings up to the YMPE

For each year July 1, 2007 to retirement

1.45% of your best 5 years earnings multiplied
by the Benefit Service Multiplier

Your current accrued pension as at January 1, 2015 can be found on your annual pension statement under the section Normal
Retirement Pension.

IS MY PENSION INDEXED DURING RETIREMENT?

Your lifetime pension may be indexed if the annual Funded Ratio is above 100%.

AT WHAT AGE CAN I RETIRE?

Your normal retirement
date is:

the first day of the month coincident with or following your 65th birthday

Your earliest retirement
date is:

between your 55th and 65th birthday, with at least two years of Continuous Service

Your earliest
unreduced retirement
date is:

the first day of the month coincident with or following your 60th birthday

Your postponed
retirement date is:

after your 65th birthday, but the pension commencement must be no later than the end of the year in which
you attain age 71.

WHAT WILL I RECEIVE AT THE TIME OF RETIREMENT?

At the time of your
normal or earliest
unreduced retirement

You will receive a pension calculated according to the pension formula previously described, paid for
your lifetime in equal monthly instalments.

At the time of your
early retirement

– If you have completed at least two years of Continuous Service and are 60 years of age or more at
the time of your retirement, you will receive a pension calculated according to the pension described
above.
– If you are at least age 55 and have completed at least two years of Continuous Service but are less
than 60 years of age at the time of your retirement, your basic lifetime pension will be reduced by
3/12% for each month that precedes age 60.
At the time of your
postponed retirement

Your pension will be calculated using the same formula as for normal retirement. Between age 65 and
your retirement date, you will continue to contribute to the Plan and to accrue benefits.

WHAT IS THE LEVEL INCOME BENEFIT?

If you retire prior to age 65, you may elect an optional temporary pension that can be paid in addition to the annual basic lifetime
pension. It aims to bridge the gap between your Prince Edward Island Education Sector pension amount before age 65 and the
combined retirement income you will receive when you will be eligible for full government benefits at age 65. Should you choose
this option, your monthly temporary pension will be approximately equal to the current government Old Age Security (OAS)
benefit and will cease at age 65. After age 65, you will continue to receive your annual basic lifetime pension.

Note that due to a 2012 federal government budget decision, the age of eligibility for OAS is gradually moving from 65 to 67. If
you were born on or after April 1, 1958, your new OAS commencement date will be after you have reached age 65. If you
choose the Level Income option for your ESPP pension, your combined retirement income from the ESPP and the OAS will be
reduced between the ages of 65 and your OAS commencement date. After your OAS commencement date your income from the
ESPP and OAS should return to the approximate amount of the benefits you were receiving immediately before you turned 65. If
you have any questions about your OAS pension please contact Service Canada by calling 1-800-277-9914 or by visiting their
website at : . http://www.servicecanada.gc.ca/eng/services/pensions/oas/changes/age/index.shtml .

WHAT HAPPENS IN CASE OF …

… termination of
employment

(prior to age 55)

Your benefit upon termination of employment prior to age 55 is a refund of the total amount of your
contributions to the Plan with interest. In lieu of a refund, if you have completed at least two years of
Continuous Service, you may elect to defer your benefits until you are eligible to receive monthly
pension payments as early as age 55.

… a workplace
accident resulting in a
Worker’s
Compensation claim

If you are injured on the job and are approved to receive Worker’s Compensation benefits, your
employer will continue to pay your contributions to the Plan and you will accrue a pension benefit for
that period. Both contributions and pension benefits accrue based on your rate of pay at the time of
your accident.

… unpaid leave of
absence (including
parental leave)

If you are on an unpaid leave approved by your employer, your contributions to the Plan cease. You
will not accrue pension benefits during the unpaid leave period. Pension accrual will continue upon
return to work. Should you not return to work after an unpaid leave, your termination date will be
based on the last date you accrued pension.

… Long Term

Disability

If you are on Long Term Disability, your insurer will continue to pay your contributions to the Plan on
your behalf and you will continue to accrue a pension benefit during your Long Term Disability period.
Both contributions and pension benefits accrue based on your rate of pay at the time of your disability.

… death prior to
retirement

– If you die prior to retirement and do not have a spouse, your beneficiary or estate will receive a
lump sum equal to the Commuted Value (pension benefit) you would have received had you
terminated service just before death. The total death benefits received will not be less than your
own contributions with interest.
– If you die prior to retirement and have a spouse, your surviving spouse will be entitled to a
lifetime pension equal to 60% of the accrued pension to which you were entitled just before the
date of death. In lieu of a pension for life, your surviving spouse can elect to receive a lump sum
equal to the Commuted Value (value of pension) you would have received had you terminated
service just before death.
… death during
retirement

– If you die after retirement but before having received 60 months of pension payments and did
not have a spouse at the date of retirement, your beneficiary or estate will receive a monthly
pension until such time that the full 5 years of guaranteed payments (starting with the original date
of pension commencement) have been paid, after which the benefit will cease. Alternatively, your
beneficiary or the executor of our estate may choose to receive a lump-sum payment equal to the
value of the pension payments still remaining in the guarantee period.
– If you die after retirement and had a spouse at the date of retirement, that same surviving
spouse (provided they are still a spouse) will receive 60% of your monthly pension for the rest of
the spouse’s life. The payment to the spouse will be made on the first day of the month
immediately following the month of your death. Spousal pension ceases upon death of the spouse.
… end of spousal
relationship

The Pension Committee has decided to suspend the processing of any new calculations related to
breakdowns of spousal relationships. This suspension will remain in force while the Pension
Committee reviews the policy on breakdowns of spousal relationships. In the interim the data required
to value the pension for purposes of breakdowns of spousal relationships will be provided. The
calculation itself will, however, be the responsibility of the parties involved. If you have any questions
about this please contact your HR representative.
GENERAL INFORMATION ON THE PLAN

Administration

The Plan is administered by the Prince Edward Island Department of Education, Early Learning and
Culture. The Department has appointed a Pension Committee to oversee the day to day tasks of the
Pension Fund. The Pension Committee is made up of the Employer, three members appointed by the
Administrator, four union representatives (each from CUPE Local 1145, 1770, 1775, 3260) as well as a
representative from the Minister of Finance.

Expenses

All expenses related to the administration of the Plan and the funds are paid from the pension fund.

Contact Information for
General Inquiries

For additional information or if you have any questions concerning the Plan, please contact your HR
representative.

Some definitions

Benefit Service
Multiplier

The total of your benefit hours accumulated between July 1, 2007 and the effective date at which the
“Benefit Service Multiplier” is being determined, divided by 2080 (full time hours). The benefit hours
for any given year shall not exceed 2080 hours.

Continuous Service

Number of years during which you have permanent full time or part time employment by a
participating PEI School District with breaks in service of no more than six months duration. Service
also includes periods on Long Term Disability, Worker’s Compensation, holidays, sick leave and leave
with pay. Approved leave of absences without pay will also not interrupt continuity of service.

Earnings

Basic salary, excluding overtime pay. Earnings also include other forms of compensation such as
Long Term Disability, Worker’s Compensation and participation in the Deferred Salary Leave
Program.

Funded Ratio

A measure of the financial health of the Plan reviewed each year as at July 31st and communicated with
a memo from the Pension Committee each Fall.

Spouse

For the purpose of the pension plan, spouse means a person who:

• is legally married to the member and is not legally separated from the member,
• is not legally married but has cohabited in a conjugal relationship with the member for a period
of at least 12 consecutive months immediately prior to date of death of the member, or
• is living together in a conjugal relationship with the member and are the natural or adoptive
parents of a child or children.
YMPE

The year’s maximum pensionable earnings used as defined in Section 18 of the Canada Pension Plan.
For 2016, it is $54,900.

This document summarizes as accurately as possible the main provisions of the Prince Edward Island Education Sector Pension Plan as at the date it was last amended
(June 30, 2012). In case of discrepancy, however, the official Plan text shall prevail. Prince Edward Island Education Sector intends to maintain the Plan indefinitely.

However, it reserves the right to amend it or terminate it at any time.

FEBRUARY 1, 2017.

This should also be circulated to Bus Drivers (so please post where they can see or place in Driver mailboxes)

 

For those that may be contemplating retirement this year or even for those that could be sometime in the next few years, this would be useful information that you would need to have. (Please copy and paste the links into your browser)

 

How much will my monthly pension be if I retire?

You receive an annual pension statement every year in June from Morneau Schepell that provides your retirement information.  Estimates could be requested if you are considering a retirement earlier than the normal age noted on your annual statement.  If you require an estimate, you can call myself or Alva Coade to request.

 

How much will my Canada Pension Plan (CPP) or Old Age Security Pension (OAS) be?

If you have a service canada account, you can do this online but for those that don’t below is the link that provides you with the telephone, online or mailing information to request an estimate of your CPP as well as the link for the Old Age Security (OAS)

 

Canada Pension Plan (CPP) link

https://www.canada.ca/en/employment-social-development/corporate/contact/cpp.html

 

 Old Age Security (OAS) link

https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/eligibility.html

 

What are my options for health/dental/travel when I retire and how much will it cost me per month? 

Johnson Insurance has a website for the active and retired CUPE members that has all the forms, costs, overview of the benefits, etc.  That website is www.mybenefitplan.ca and the link for the information regarding what options there are for the retirees and what is included in the benefits is:

http://www.mybenefitplan.ca/groupRetirees/baag_baag.asp?sectionLink_0

REtirees have the option to change their plan (within the 4 options) each March for the upcoming year so for example if you found that the option you selected you were paying for is more than you require, you might select the lower cost option for the next year.  You can change this every year if you need to.

 

PEI Seniors Drug Plan information:

If you are 65 years of age, you automatically qualify for this program.  The link will provide you with the relevant information you need to know about this plan and how you could then change your CUPE Retiree Drug Plan to a lower costing plan.

http://healthpei.ca/index.php3?number=1026303&lang=E

 

Retirement Allowance (Article 23 CUPE Support and Article 20 CUPE 3260)

As per your Collective Agreement, when you retire, if you are eligible, you would receive either a lump sum payment (less taxes) or transfer into an RRSP, monies that recognize your years of continuous service to a maximum of one hundred and twenty-five days (125) CUPE SUpport and 714 hours (CUPE 3260) calculated at your current hourly rate.  This calculation will be provided to you by Nicole Tremere, Payroll Supervisor.

 

If you have any questions regarding retirement, please do not hesitate to contact me and for those that are planning to retire this year, if they could let us know as soon as possible it would be greatly appreciated.

 

Thank you!