SYS-CON MEDIA Authors: Jason Bloomberg, Sandi Mappic, RealWire News Distribution, Kevin Benedict, Bob Gourley

News Feed Item

Agreement Reached on Benefits for Retired and Current Federal Employees

OTTAWA, ONTARIO -- (Marketwired) -- 03/26/14 -- Treasury Board Secretariat

The Government has approved a joint recommendation from the Public Service Health Care Plan Partners Committee regarding contribution rates and eligibility requirements for retired federal employees as well as benefit enhancements for all Plan members under the Public Service Health Care Plan, that will result in significant savings for Canadian taxpayers. This ensures that the Plan remains fair, competitive, and sustainable. All parties recognize the importance of continuing to offer a voluntary, supplementary health care plan to all members, which is in line with comparable private sector plans. The Government of Canada thanked all parties for reaching a fair, fiscally responsible and sustainable agreement.

As announced in Economic Action Plan 2014, retired member contributions to the Plan will transition to equal cost sharing (50:50). Further, the number of years of service required to be eligible to participate in the Plan in retirement will increase to six. The Budget also indicated that the Government of Canada was prepared to consider reasonable plan improvements provided they were fair to taxpayers.

This agreement has secured benefit enhancements for all plan members (not just retired members) for services that promote employee health and wellness, and offer coverage in areas of increased interest to plan members. The Plan remains comparable to plans of other mid-to-large employers in Canada.

Quick Facts


--  Effective April 1, 2015 retired members' cost sharing will gradually be
    increased from 75:25 (employer/retired member) to 50:50 over a four year
    period. Low income retired members will not be affected.

--  Effective January 1, 2015 the annual deductible will be eliminated. Plan
    members will no longer have to pay the first $60 for single coverage or
    $100 for family coverage per calendar year.

--  Effective October 1, 2014 benefit enhancements will be introduced
    including reimbursement for laser eye surgery with a lifetime maximum
    benefit of $1,000 and an increase to the annual maximum benefit for
    psychological services from $1,000 to $2,000.

--  Effective April 1, 2015 new retired members, with certain exemptions,
    will require a total of six years or more of pensionable service to be
    eligible as a retired member under the Public Service Health Care Plan.


Quotes

"Our Government is committed to keeping taxes low, returning to balanced budgets and respecting Canadian taxpayers' dollars. This is a fair and reasonable agreement, resulting in benefits for employees, retirees, and the Canadian taxpayer," said Minister Clement. "Our work to modernize the public service is part of our commitment to strong financial management and spending restraint."

The Honourable Tony Clement, President of the Treasury Board

Associated Links

- Information on Changes to Retiree Benefits

- Economic Action Plan 2014

- Public Service Health Care Plan

- Old Age Security Act

Follow us on Twitter: @TBS_Canada.

Contacts:
Heather Domereckyj
Press Secretary
Office of the President of the Treasury Board
613-957-2666

Media Relations
Treasury Board of Canada Secretariat
613-957-2640
TTY (telecommunications device for the
hearing impaired) - 613-957-9090

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.