You have probably heard that changes have been proposed to the Public Service Superannuation Act (PSSA). These are only proposals and will not be in effect until after the legislation is amended. However, be assured that none of these changes will alter your pension entitlement and your benefits will continue to be fully protected against inflation. As well, some of the proposals, if adopted, could be of benefit, including guaranteed pensioner representation on the Advisory Committee.

Other proposals that could affect you are explained briefly below.

1. Changes to Supplementary Death Benefits (SDB)

It is proposed that there be a number of benefit improvements to the Supplementary Death Benefit, the term life insurance plan set out in Part II of the PSSA. More specifically:

• Presently, at age 65 no contribution is required on the first $5,000 of coverage; if approved, this "paid-up" benefit will be increased to $10,000. This benefit will also be available to SDB participants who retired after April 1, 1995, with entitlement to an annual allowance within 30 days after retirement.
• Currently, coverage is reduced by 10% each year beginning at age 61. If the changes are approved, the reduction will not begin until age 66. Coverage will never be reduced below the "paid-up" $10,000.
• The regular premium will be reduced from $.20 to $.15 per month for each $1000 of coverage.

2. Introduction of a Dental Plan for Pensioners

The proposal is to introduce a dental plan for current and future pensioners, their survivors and dependants. The dental plan would be similar to the current dental plan for federal government employees. The plan would be voluntary with costs being shared on a 60/40 basis between the employer and the pensioner.

More consultation is required with stakeholders, including with pensioners, on the details of the plan before it can be established. Once consultation has been completed, Treasury Board will bring the dental plan into force. More details will be provided at that time.

There are also changes being proposed that would impact only on current employees. These include increased contributions and changes in the basic benefit calculation.