The Public Service Management Insurance Plan - Premium Rates effective January 1, 2009
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December 5, 2008
To: Compensation Managers
Heads of Human Resources
Participating Separate employers
To inform plan members and employers participating under the Public Service Management Insurance Plan (PSMIP) of premium decisions regarding three lines of insurance effective January 1, 2009.
Each year, the Board of Trustees reviews the financial operation of the Plan. Based on this review, the Trustees make recommendations to 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 December 4th 2008, the Treasury Board approved the recommendation of the Board of Trustees to continue the premium holidays for the following three lines of employer-paid insurance.
- Executive Plan – Accidental Death and Dismemberment;
- Executive Plan – Dependants' Insurance; and
- Members of Parliament – Accidental Death and Dismemberment.
As a result, the premium for the Judges Plan Basic Life is re-instated effective January 1, 2009.
Notice to Employees and Premium Rate Chart
The premium holidays will remain in effect for the calendar year 2009. The premium holidays and the rate increase 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, 2009, 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.
Participating employers with their own pay facilities are required to ensure that premiums remitted to Industrial Alliance during 2009 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 pay and benefits specialist.
Chiefs of Compensation at the corporate level may call Robert Allard at (613) 952-5118 or at Robert.Allard@tbs-sct.gc.ca.
Pensions and Benefits Sector
PUBLIC SERVICE MANAGEMENT INSURANCE PLAN (PSMIP)
MONTHLY PREMIUM RATES AT JANUARY 1, 2009
MAIN PLAN (employee‑paid coverage)
|81 and over||0.42||0.33|
|81 and over||0.29||0.24|
- Children only: $0.47 flat rate
- Spouse & children/spouse only
|81 and over||3.20||5.00|
ACCIDENTAL DEATH & DISMEMBERMENT (AD&D)
$0.275 per $25,000 unit (maximum 10 units)
LONG‑TERM DISABILITY (LTD) (cost-shared coverage)
$1.40 per $1,000 of insured salary.
The Employer pays 85% of the premium ($1.19) for excluded employees and 100% for Executives and equivalents.
MONTHLY PSMIP PREMIUM RATES AT JANUARY 1, 2009
*Premium Holiday in effect from January 1, 2009 until December 31, 2009
|BASIC LIFE||$0.25||per $1,000 of insurance|
|AD&D* (premium holiday for 2009)||$2.25||for $250,000 of insurance|
|DEPENDANTS'*(premium holiday for 2009)||$1.21||Regardless of family status|
|POST- RETIREMENT LIFE||$1.92||per $1,000 of insurance|
|BASIC LIFE||$0.55||per $1,000 of insurance|
|AD&D*(premium holiday for 2009)||$9.13||for $250,000 of insurance|
|DEPENDANTS'||$0.92||Regardless of family status|
|POST‑RETIREMENT LIFE||$2.84||per $1,000 of insurance|
|BASIC LIFE||$0.90||per $1,000 of insurance|
|AD&D||$2.50||for $250,000 of insurance|
|DEPENDANTS'||$1.50||Regardless of family status|
|POST‑RETIREMENT LIFE||$3.80||per $1,000 of insurance|
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