The Public Service Management Insurance Plan - Premium Rates effective January 1, 2011

Purpose

To inform plan members and employers participating under the Public Service Management Insurance Plan (PSMIP) of premium decisions regarding eight (8) lines of insurance effective January 1, 2011.

Background

Each year, the Board of Trustees reviews the financial operation of the Plan. Based on this review, the Trustees make recommendations to the President of the Treasury Board regarding premium rates necessary to ensure that the plan is financially sound and continues to operate in the best interest of plan members.

On October 24, 2010, the President of the Treasury Board approved the recommendation of the Board of Trustees to continue the premium holidays for the following four lines of insurance:

1. Main Plan – Dependants' Insurance
2. Executive Plan – Accidental Death and Dismemberment
3. Executive Plan – Dependants' Insurance; and
4. Members of Parliament – Accidental Death and Dismemberment.

Further, the President of the Treasury Board approved the recommendation of the Board of Trustee's for a 12 month premium holiday for the following four lines of insurance:

1. Main Plan – Basic Life;
2. Main Plan – Supplementary Life;
3. Executive Plan – Basic Life; and
4. Judges' Plan – Basic Life.

In addition to the above premium holidays, the President of the Treasury Board approved the recommendation of the Board of Trustee's for a decrease in the premium rate for the following two lines of employer–paid insurance:

1. Executive Plan – Basic Life – 10% premium rate reduction; and
2. Judges Plan – Basic Life – 45% premium rate reduction.

Notice to Employees and Premium Rate Chart

The premium holidays will remain in effect for the calendar year 2011. The premium holidays and the rate reductions apply to the above–noted lines of insurance only. All other lines of insurance remain the same.

Attached is a chart showing the premium rates effective January 1, 2011, for all lines of insurance. Please ensure that all members of the Plan are provided with a copy of this bulletin, including the attached chart.

Administrative Information

Participating employers with their own pay facilities are required to ensure that premiums remitted to Industrial Alliance during 2011 are in accordance with the information on the rate chart.

Enquiries about the PSMIP

Employees with questions about their coverage under the PSMIP should contact their compensation advisor. Chiefs of Compensation at the corporate level may contact Ginette Baker at (613) 946-4336 or by e-mail at Contact Ginette Baker by E-mail : Ginette.Baker@tbs-sct.gc.ca.

Daphne Meredith
Chief Human Resources Officer
Office of the Chief Human Resources Officer