Pension Life - Summer 2020
Built to last
The plan remains strong in uncertain times
Many retired members participate in the plan’s retirement group benefits program, which offers extended health care and dental coverage. The board is aware that, due to COVID-19, retired members have not been able to access their full benefits.
The plan’s retirement group benefits provider, Green Shield Canada, has indicated it will temporarily apply a 75 per cent premium reduction for members with dental coverage. The board is also applying an eight per cent temporary reduction to the extended health care premiums. The reduced premiums will be automatically applied to your July, August and September 2020 pension payments.
A review of our health benefits program is underway
Although retirement group health benefits are not guaranteed, we strive to ensure these benefits can be maintained for the long term. It’s important to recognize that the number of retired members—and the cost of providing subsidies—will continue to increase over time. Both these increases could lead to funding challenges for subsidized retirement health coverage in the future.
We are currently reviewing the design of health benefits and exploring options to meet future needs. As part of this review, we will be reaching out and engaging with retired members to ask for feedback. Please watch our new video on health benefits funding, and check back often for updates about the review.
The next valuation report is coming this winter
The latest valuation of the plan’s funded position is underway, and we will use its findings to inform our direction over the next few years. The actuary’s final valuation report will be available in January 2021, and we will share highlights with you in the winter 2021 issue of Pension Life.
Learn about health benefits funding
As a retired member, you have access to optional extended health care (EHC) and dental coverage through the plan. Learn more about how EHC subsidies are funded.