New contract awarded to administer the Pensioners’ Dental Services Plan and the Public Service Dental Care Plan

Purpose

The Government of Canada would like to announce that it has awarded a single Administrative Services Only (ASO) contract to the Canada Life Assurance Company (Canada Life) for the administration of its two public service dental plans, the Pensioners’ Dental Services Plan (PDSP) and the Public Service Dental Care Plan (PSDCP). Both dental plans will continue to remain separate and distinct, but the administration will be performed by one company.

Following a transition period, Canada Life will begin administering the plans under the new ASO contract November 1, 2024.

The new ASO contract will not impact the cost of the dental plans for members or the benefits available to them and their families. The award of the new contract to Canada Life simply impacts who administers the PDSP and PSDCP.

Background

The PDSP is a voluntary dental care plan for eligible retired members of the federal public service and their eligible dependants and survivors. The PSDCP is a mandatory dental care plan for eligible federal public service employees and their eligible dependants and survivors. Both plans are designed to supplement provincial and territorial health and dental care plans.

The Government of Canada, as the sponsor for all public service benefit plans, has an obligation to competitively re-tender the contracts for the benefit plans. Under an ASO contract, the Government of Canada funds the benefit plans and hires a third-party administrator to perform specific administrative services.

The new ASO dental contract is a result of a Public Services and Procurement Canada procurement process that began in 2019. The new contract has a term of up to 14 years and will provide the following administrative services for the dental care plans:

• Claims processing and claims payment services
• Member management services
• Audit and claim verification
• Reporting services
• Member communications and information services
• Provider communications and information services

Service improvements

The new ASO contract offers improvements to member and provider digital services and claims processing. It will provide high-quality data for decision-making and robust auditing. The contract also provides advanced misuse and abuse detection, and improved member communications. The new contract will ensure services are accessible and in compliance with official languages, privacy and security and supports the Government of Canada’s policy goals on green procurement, digitization, Indigenous commitments, and diversity and inclusion.

How to prepare for the new administrator

The Government of Canada, Sun Life and Canada Life will work together to provide PDSP and PSDCP members with a seamless transition from the current ASO contracts to the new one. Plan members will receive regular updates on the progress of the transition and will be informed of required actions leading up to the move to the new contract to help ensure that there is no interruption in dental coverage when Canada Life begins administering the plans under the new ASO contract November 1, 2024.

Until administration begins under the new contract, members must continue to send all claims and requests to their current plan administrator (Sun Life for PDSP and Canada Life for PSDCP).

Plan members can prepare for the new ASO contract by ensuring their contact information is accurate with their current plan administrator.

For more information on the Pensioners’ Dental Services Plan, and the Public Service Dental Care Plan visit Canada.ca/Pension-Benefits.

For questions or concerns, contact the Employee Relations and Total Compensation Sector by email.