OSSTF BENEFITS MEMORANDUM

To: Eligible OSSTF Education Workers and Long-Term Assignment Education Workers

From: Donna Morrison, Executive Director

July 6, 2022

Renewal of the OSSTF Life Insurance, Accidental Death and Dismemberment and Health and Dental Benefits Plan

The OSSTF Benefits Plan Life Insurance and Health and Dental Benefits provided by Manulife and AD&D (Accidental Death and Dismemberment) Benefits provided by Teachers’ Life, renew effective September 1 of each year. September 1, 2022 is the fifth renewal of the OSSTF Benefits plan.

One of the main principles that guides the OSSTF ELHT Board of Trustees in its work on behalf of plan members is protecting the long-term sustainability of the OSSTF Benefits Plan while also ensuring comprehensive coverage for members and their families. Achieving this balance includes responsible financial management and following the benefits industry’s best practices.

The OSSTF Benefits Plan is funded by two sources:

The negotiated FTE (Full Time Equivalent) Funding as outlined in the OSSTF Central Agreement for Education Workers: This is the major source of funding for the plan. The current level of FTE funding is $5,655 annually per FTE including retail sales tax.

Member contributions towards the plan: Member contributions toward the health and dental benefits are 6% of the budgeted premium rates for full time members (1.0 FTE) and pro-rated for less than full time members. Since the member contributions have not changed since inception, they no longer represent this proportion of the plan costs.  There are also member contributions for members who elect to participate in the Optional Life Benefits and members who are on a leave of absence and elect to continue to participate in the plan.

As the OSSTF Central Agreement for Education Workers expires August 31, 2022, the future FTE funding of the OSSTF ELHT is unknown and will be held at the current levels until a new Central Agreement is ratified.

Taking all these factors into account, the OSSTF Benefits Board of Trustees has approved the September 1, 2022 renewal resulting in an overall increase of 2.7% to the cost of the plan.  By line of benefit, the approved renewal action is as follows:

• Based on the demographics and life insurance risk of the eligible OSSTF Education Workers, a reduction of 9.9% to the Basic Life Insurance rate and no change to the Basic AD&D rate: This component of the OSSTF Benefits Plan represents less than 3% of the total plan costs. For active members, the Basic Life insurance and AD&D premium is funded through the negotiated FTE funding; this will not have an impact on member contributions. It will result in a slight decrease to the T4As issued annually for these taxable benefits.
• A reduction of 10% to the current member paid Optional Life rates and no change to the member paid Optional AD&D rates: This will result in a slight decrease to the monthly premiums for members who are participating in the Optional Life and AD&D benefits. It is important to note that Optional Life rates are based on 5-year age band. Therefore, if a member or spouse’s age brings them into the next 5-year age band, these premiums will change. OTIP will advise members of this age band rate change. Members and spouses always have the option of reducing or cancelling their Optional Life coverage.
• Based on past and projected claims experience of the health and dental benefits, an increase to the health rates of 2.1% and to dental rates of 5.6% that the plan pays to the carrier is necessary. However, the OSSTF ELHT has approved that the current level of member contributions be held through the September 1, 2022 renewal: This will result in no change to the health and/or dental member contributions for both active members and those on leave who are participating in the health and/or dental benefits.

 

The claims experience of the OSSTF Benefits Plan will continue to be monitored regularly by the trust. It is important to note that based on the evolution of the plan’s claims experience and the status and potential outcome of negotiations of the OSSTF Central Agreement, it may be necessary to implement an increase to the member contributions and/or implement some cost containment changes to the plan. If necessary, members will be provided advance notice of any change, but the effective date of the change may be prior to the next scheduled renewal date of September 1, 2023.

If you have any questions please contact Donna Morrison, Executive Director at OSSTF Benefits, at donna.morrison@osstfbenefits.ca.

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The information in this document is provided by OSSTF Benefits for general information only. OSSTF Benefits endeavours to have all information current and accurate. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, or suitability of the information included. All information is subject to change without notice.

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