Proposed Changes to Post-Retirement Insured Benefits

Posted: July 29, 2015 Print this page Email the link

On February 18, 2014, the Ministry of Government Services announced proposed changes to the eligibility criteria and terms for post-retirement insured benefits for members of the OPSEU Pension Plan, to take effect on January 1, 2017. Current eligibility rules allow all Plan members who have at least 10 years of pension service to receive these benefits at no cost to them. Although announced, these changes have not been finalized.

If implemented, the eligibility requirements and cost-sharing terms for these benefits will change beginning January 1, 2017.

Eligibility

Members who do not meet the current 10 year eligibility criteria in the Plan by January 1, 2017 must meet the following criteria to qualify for post-retirement insured benefits:

• at least 20 years of pension service; and
• retirement to an immediate unreduced pension.

Cost-Sharing:

Any eligible member (under either the old or new eligibility rules) who has not started their pension before January 1, 2017 would be required to pay 50% of the premium costs to participate in the benefits plan.

Depending on your years of pension service in the Plan or the date you plan to start your pension, you may be affected by these proposed changes:

• Current retirees
  If you are a current retiree who qualified to receive insured benefits when you retired, your benefits remain unchanged and there are no additional costs to you.
• Active and deferred members who intend to retire before January 1, 2017
  If you have met the current 10 year eligibility criteria for insured benefits and intend to start your pension before January 1, 2017, you continue to qualify for insured benefits and there are no additional costs to you.
• Active and deferred members who intend to retire on or after January 1, 2017
  If you meet the current 10 year eligibility criteria for insured benefits before January 1, 2017 but intend to start your pension on or after January 1, 2017, you would be required to pay 50% of the premium costs to participate in the insured benefits program if the proposal is implemented. Based on current premium costs, the estimated annual cost to participate would be approximately $1600 for family coverage or $890 for single coverage.
• Active members who will not meet the 10 year qualification on January 1, 2017
  If you will not meet the current 10 year eligibility criteria on January 1, 2017, you would be subject to the proposed new eligibility criteria. To qualify for insured benefits you must accrue 20 years of pension service as well as retire to an immediate unreduced pension. If you meet the eligibility requirements you would also be required to pay 50% of the premium costs to participate. Based on current premium costs as of August 1, 2015, the estimated annual cost to participate would be approximately $1600 for family coverage or $890 for single coverage.

If you have questions about these changes, please contact us