Changes to Pensioners' Contribution Rates for the Public Service Health Care Plan - Frequently Asked Questions
What are the changes to pensioners' contribution rates?
On April 1, 2011, the pensioners' contribution rates for the Public Service Health Care Plan will be adjusted to reflect the 25%:75% pensioner-employer cost-sharing ratio established in 2006.
The average annual benefit for a pensioner is about $1,700. Depending on the type of coverage (single or family), current monthly rates will increase by either $7 or $13 (approximately). This applies to all levels of coverage and will be implemented beginning with the April pension cheque.
What are the new monthly contribution rates?
The following table contains the current and the new rates effective April 1, 2011:
|Coverage||Level I||Level II||Level III|
|Single||From $14.71||To $21.78||From $31.27||To $38.34||From $60.12||To $67.19|
|Family||From $29.80||To $42.76||From $46.36||To $59.32||From $75.21||To $88.17|
Why are the pensioners' contributions changing?
In 2006, the Treasury Board, bargaining agents and the Federal Superannuates National Association agreed to a cost-sharing ratio of 75% for the employer and 25% for pensioners. At that time, monthly contribution rates were established for a fixed period (2006 to 2011), to be re-calculated and adjusted beginning on April 1, 2011.
Over the past five years, overall costs of the plan have risen while pensioners' contribution rates have remained the same. As a result, the pensioners' cost-sharing ratio has decreased since 2006 in relationship to the average cost per pensioner.
How were Public Service Health Care Plan members informed of this change?
Plan members were informed, through the Public Service Health Care Plan Bulletin, of both the 25%/75% cost-sharing ratio and an April 1, 2011 rate change when the agreement came into effect in 2006.
The cost-sharing ratio of 25%/75% is not changing, nor are the plan benefit provisions.
When will the next contribution change come into effect?
Changes to Public Service Health Care Plan contribution rates will involve discussions between the Government of Canada, bargaining agents and the Federal Superannuates National Association.
Plan changes will be communicated to members through the Public Service Health Care Plan Bulletin.
Can I change or terminate my coverage as a result of this rate change?
You can apply to change your coverage (for example, from single to family), to increase or decrease your Hospital Benefit (Level 1, 2 or 3), or to terminate your coverage at anytime. The effective date of the amended coverage will depend upon the type of change you are making and the date at which you make it. Please refer to the Plan Directive for details.
Any requests for changes or terminations should be directed to the Public Service Pension Centre.
Public Works and Government Services Canada
Public Service Pension Centre – Mail Facility
PO Box 8000
Matane QC G4W 4T6
Toll free: 1-800-561-7930
Monday to Friday
8:00 a.m. to 4:00 p.m. (Your Local Time)
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