Becoming an executive - Public service group insurance benefit plans

Congratulations on becoming an executive. The following is intended to provide information on the benefits under the group insurance benefit plans available to executives in the public service.

You may want to know…

  • What group insurance benefit plans are available to executives?

    As an executive, if you meet the eligibility criteria under each plan, you are eligible for 100% employer-paid coverage (Government of Canada) under the following group insurance benefit plans:

    1. Public Service Health Care Plan (PSHCP) including Hospital Level III

      If you are not already a Public Service Health Care Plan (PSHCP) member when you become an executive, your coverage will be effective the first day of the month following the date you become eligible. For enrolment information refer to New to the public service.

      If you are already a member of the PSHCP when you become an executive, your departmental Compensation services or Public Service Pay Centre will stop your contributions, if any.

    2. Public Service Dental Care Plan

      The Government of Canada pays 100% of the cost of your dental care coverage.

    3. Public Service Management Insurance Plan (PSMIP) Long-Term Disability and Life (excluding Supplementary Life)

      The Public Service Management Insurance Plan (PSMIP) provides 100% employer-paid Long-Term Disability, Basic life, Accidental death and dismemberment and Dependants' life insurance.

      Executives pay 100% of the premiums for Supplementary Life insurance.

      For details on the employer-paid PSMIP benefits that are available to executives, refer to the PSMIP Executive Plan Member Booklet.

      If you are not already a PSMIP member when you become an executive, your coverage will be effective the first day of the month following the date you become eligible. For enrolment information refer to New to the public service.

      If you are already a PSMIP member when you become an executive, your departmental Compensation services or Public Service Pay Centre will stop your contributions. 

  • Does employer-paid coverage continue during periods of Leave without pay?

    Under the Public Service Health Care Plan, employer-paid coverage continues during all periods and types of Leave Without Pay.

    Under the Public Service Dental Care Plan, employer-paid coverage may continue depending on the type of Leave without pay.

    Under the Public Service Management Insurance Plan, employer-paid Public Service Management Insurance Plan (PSMIP) coverage continues during all periods and types of Leave without pay. Note: For Supplementary Life insurance you must make arrangements to pay your premiums directly to Industrial Alliance (the Insurer) to maintain coverage.

  • Are employer-paid contributions/premiums taxable?

    Under the Public Service Health Care Plan and the Public Service Dental Care Plan, employer contributions are a taxable benefit to residents of Quebec.

    Under the Public Service Management Insurance Plan, all employer-paid life and long-term disability premiums are a taxable benefit under the Income Tax Act.  This means the employer-paid premiums are considered part of your income for federal income tax purposes. This is also the case for Quebec provincial income tax purposes, if applicable. 

  • Can employer-paid coverage be refused?

    Yes.  You can refuse the employer-paid Public Service Health Care Plan by sending a written request to your departmental Compensation services or the Public Service Pay Centre.

    The Public Service Dental Care Plan is a mandatory dental care plan for all employees.  For more information, contact your departmental Compensation services or the Public Service Pay Centre.

    Yes. You can decline employer-paid Public Service Management Insurance Plan (PSMIP) coverage by obtaining a waiver form from your departmental compensation services or the Public Service Pay Centre by completing, signing and submitting the form. It is important to note that there will be a five year waiting period should you later decide to cancel the waiver and have your PSMIP coverage reinstated.

  • Are you eligible for employer-paid coverage if you are temporarily working in an executive position?

    If you are temporarily performing the duties of a position to which employer-paid coverage applies, you are not entitled to employer-paid coverage.

  • What happens if you transfer to a position where employer-paid coverage does not apply?

    Under the Public Service Health Care Plan you can continue Hospital Level III coverage and pay the appropriate monthly contributions or amend your coverage.

    Under the Public Service Management Insurance Plan:

    1. Your employer-paid Basic life, Accidental Death & Dismemberment and Dependants' Life insurance coverage stops immediately, and the employer premiums payable for these lines stop immediately.
    2. Your employee-paid Basic life, Accidental Death and Dismemberment and Dependants' Life insurances commence immediately. The employee premiums for these insurances will begin on the first of the month following the date of change.
    3. You will begin to pay the employee share of premiums for PSMIP-LTD insurance effective the first of the month following the date of change.
    4. If you had both employer-paid Basic Life of two-times salary and Supplementary Life equal to salary, you may, within 31 days of the date of change, convert the difference between employer-paid Basic Life and employee-paid Basic Life (one times salary) to a private policy with Industrial Alliance at commercial rates without proof of insurability.
  • Does employer-paid coverage continue when you retire?

    Under the Public Service Health Care Plan employer-paid coverage stops when you retire but you can choose to continue the coverage without interruption when you complete your retirement documents. You will be responsible for your own contributions as a retired member. See Preparing for retirement for more information.

    Under the Public Service Management Insurance Plan, Long-Term Disability and Accidental Death and Dismemberment coverage stops when you retire.

    Under the Public Service Management Insurance Plan, Basic life, Supplementary Life and Dependants' Life coverage will continue for a 31 day extension period. During that period, you can convert your coverage to a private life insurance policy without being required to provide evidence of insurability (i.e. no medical requirements regardless of the state of your health). You must make your own arrangements directly with Industrial Alliance.

  • What is the Post-Retirement Life Insurance Plan under the Public Service Management Insurance Plan?

    The Post-Retirement Life Insurance Plan under the Public Service Management Insurance Plan provides employer-paid life insurance coverage after retirement. It is available to executives who were entitled to employer-paid coverage on their last day of employment and who are entitled to receive an immediate ongoing public service pension.

    During your first year of retirement, your life insurance will be equal to your adjusted final salary to the next highest multiple of $250. Coverage reduces 25% annually, to a final 25% of your insured salary thereafter for life.

    The employer-paid premiums are a taxable benefit under the Income Tax Act.  This means the employer-paid premiums are considered part of your income for federal income tax purposes. This is also the case for Quebec provincial income tax purposes, if applicable.

  • Can Post-Retirement Life Insurance under the Public Service Management Insurance Plan be cancelled?

    Yes. You can cancel your Post-Retirement Life Insurance coverage at any time by notifying the Government of Canada Pension Centre in writing. Your coverage stops on the first day of the month following the month in which your written request was received.

    Note: If you cancel this insurance, you will never be able to reinstate it - cancellation is irrevocable.

  • What happens to the Post-Retirement Life Insurance under the Public Service Management Insurance if you become re-employed in the public service?

    If you become re-employed in the federal public service and become eligible as an active employee for insurance under the Public Service Management Insurance Plan and/or become again a contributor under the public service pension plan, your Post-Retirement Life Insurance will be suspended until you retire a second time. When your coverage resumes, it will do so at the level of benefits (100%, 75%, 50% or 25% of adjusted final salary) in effect when it was suspended, however, it will be based on the higher of your first and your second final salaries.

    If you become a member of the Canadian Armed Forces or the Royal Canadian Mounted Police, ask your new departmental Compensation services to explain to you how your re-employment will affect your life insurance.

Visit Public service pension plan for information on pension.

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