What is the PSMIP?

The PSMIP is a group insurance plan established by the Treasury Board of Canada. It provides Long-term Disability (LTD), Life, Accidental Death and Dismemberment (AD&D), and Dependants' Insurance for federal employees who are excluded from collective bargaining because they are working in managerial or confidential capacities. Executives, parliamentarians, and judges are also covered by the Plan and have distinct benefits. The PSMIP is insured through the Industrial Alliance Insurance and Financial Services Inc.

Board of Trustees

A Board of Trustees, appointed by the President of the Treasury Board, monitors the financial operations of the Plan and oversees its administration. The current members of the Board are:

Scope of the Plan

Since its inception in 1968, the Plan has paid $701 million in cash benefits under the various classes of insurance to 12,964 members and their beneficiaries. As of December 31, 2006, 48,200 members were covered under the Plan. In addition to Dependants' Insurance, members were insured as estimated below:

Line of Insurance

Amount (in thousands)

Basic Life


Supplementary Life


Accidental Death and Dismemberment (AD&D)


Long-term Disability (LTD)


Post-retirement Life (PRLIP)


Premiums and Benefits

Premiums paid into the Plan during 2006 are shown in the following table and are compared with the amount paid out to claimants or set aside as reserves. 

Line of Insurance


Claims (and Increases to Reserves)

Ratio of Claims to Premiums

Basic Life




Supplementary Life




Members' AD&D




Dependants' Life and AD&D

















When a disability claim is received, sufficient funds are set aside to pay all future monthly benefit installments to the claimant. These funds are referred to as "reserves." As of December 31, 2006, plan reserves totaled $222.3 million.


Most of the lines of insurance under the Plan were in a surplus position at year end. The Plan, as a whole, had a surplus of $22.1 million at year end.

Plan Disbursements

The total amount paid out of the plan during the year was $60.2 million. Of this amount, 93.6% was paid in the form of benefits to plan members and their families, 3.5% was for expenses, and 2.9% was for premium taxes.

Recommendations Approved By Treasury Board

The Treasury Board approved the Board of Trustees' recommendations for the following premium decisions to be effective January 1, 2007:

Further Information

If you have questions about your coverage under the Plan or need general information about the benefits available, please contact your compensation advisor or visit the Treasury Board of Canada Secretariat's Web site on the Government Enterprise Network (GENet) and Internet. To access the site, type one of the following in the address section of your World Wide Web browser:

GENet access:  http://publiservice.tbs-sct.gc.ca

Internet access : http://www.tbs-sct.gc.ca

If you would like to have further information on the general experience and operations of the Plan, please contact:

Robert Allard, Secretary
Board of Trustees
Public Service Management Insurance Plan
6th floor, West Tower
300 Laurier Avenue West
Ottawa, Ontario  K1A 0R5
e-mail: Allard.Robert@tbs-sct.gc.ca

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