How health benefits are funded

As a retired member, you have access to optional extended health care (EHC) and dental coverage. Watch a video to learn more about how EHC subsidies are funded.

Learn how EHC subsidies are funded in this video, or read the transcript below.

Who pays for health benefits in retirement?

Your pension from the plan is a monthly income for your lifetime. It’s based on your salary and years of pensionable service.

Health benefits are not part of your pension. When you retire, any EHC and dental coverage provided directly through your employer likely stops.

Your pension plan offers an optional extended health benefits program for retired members. It includes coverage for health care, such as prescription drugs, vision care, hearing aids, medical aids and supplies, as well as services from physiotherapists and other medical professionals.

Providing access to these benefits is a priority for the board. But the benefits are not guaranteed because they are funded differently from the pension. Coverage can change at any time, and your premiums, subsidies and deductibles may increase, decrease or be eliminated.

The cost to offer extended health coverage is shared by the pension plan and members. As a retired member, you pay part of the cost through your monthly premiums. These are automatically deducted from your pension payment (or paid directly by you if your pension is smaller than the monthly premiums).

Your premium for EHC may be subsidized by the plan based on your years of pensionable service. Your spouse and dependants can also enrol in the group benefits program. Their premiums are not subsidized.

Subsidies paid by the plan are funded through a small portion of current employer contributions. Active member pension contributions do not help pay for retirement health benefits.

Your pension plan also offers an optional dental program in retirement. Retired members who choose to enrol in the dental plan pay 100 per cent of the cost through premiums that are set annually.