Information Concerning Contribution Rate Changes to the Pensioners' Dental Services Plan

June 1, 2010

To: Compensation Managers; Heads of Human Resources; Participating Separate Employers

The purpose of this notice is to advise you of an upcoming increase in the Pensioners' Dental Services Plan (PDSP) contribution rates. You are asked to inform retiring personnel of the following:

• a change in the contribution rates for the PDSP effective October 1, 2010 and;
• for existing members, a one time opportunity from June 1, 2010 to August 31st, 2010 to withdraw from the PDSP early.

The PDSP is a voluntary dental services plan providing dental services coverage to eligible federal pensioners and their eligible family members, including survivors.

PDSP Contribution Rate Changes

PDSP costs are currently shared between the Government of Canada and Plan Members on a 60% - 40% basis, respectively.

Effective October 1, 2010, these costs will be shared equally between the Government of Canada and Members.  As a result, the monthly PDSP contribution rates will be increasing.

The following table contains the new rates effective October 1, 2010. Pensioners who are already PDSP Members will see the new rates reflected on their September 2010 pension cheque for October 2010 coverage.

Category of Coverage	Rates as of October 1, 2010
I Pensioner Only	$16.00
II Pensioner and one eligible family member	$31.96
III Pensioner and more than one eligible family member	$47.96

Category of Coverage for Veterans	Rates as of October 1, 2010
II  Pensioner and one eligible family member	$16.00
III  Pensioner and more than one eligible family member	$31.96

Note: Rates are subject to applicable taxes.

Temporary Suspension of Three-Year Mandatory Participation Provision

PDSP participation is optional.  Normally, pensioners and any covered family members must remain PDSP participants for three complete calendar years before voluntarily withdrawing from the Plan.  This requirement has been temporarily suspended for the period from June 1, 2010 to August 31, 2010.

For questions regarding this notice, please contact Christine Haapanen, PDSP Program Manager, Treasury Board Secretariat at 613-952-3260 or Catherine Monette, Senior Benefits Officer at 613-952-3242.