PSHCP New Pensioner and Employer Contribution Rates Effective April 1, 2011

Date:

To: Compensation Managers; Heads of Human Resources; Participating Separate Employers

The purpose of this notice is to inform Compensation Managers that effective April 1, 2011 the monthly pensioner and employer contribution rates for the Public Service Health Care Plan (PSHCP) will increase. The PSHCP employee contribution rates will remain unchanged at this time. Compensation Managers are asked to inform retiring personnel of the change in the pensioner contribution rates.

On April 1, 2011, the pensioner contribution rates for the PSHCP will be adjusted to reflect the agreed upon cost sharing principle between the employer and the pensioner. The rate increases will be implemented beginning with the April pension cheques. The bargaining agents and the Federal Superannuates National Association (FSNA) agreed in 2006 that a rate adjustment would not occur until 2011. The Government of Canada continues to ensure that employee and pensioner benefit plans are managed effectively and efficiently in collaboration with bargaining agents and the FSNA.

New Pensioner Contribution Rates (Supplementary Coverage)
Coverage Level I Level II Level III
Single From $14.71 to $21.78 From $31.27 to $38.34 From 60.12 to $67.19
Family From $29.80 to $42.76 From $46.36 to $59.32 From $75.21 to $88.17

For more information regarding the changes to pensioner contribution rates, please refer to the PSHCP Frequently Asked Questions section.

The portion of the PSHCP contribution rate paid by the employer is a taxable benefit for members residing in Quebec. Therefore, it is recommended that these members be informed of the change in the employer's contribution rate because it will impact their taxable income. All PSHCP members who are absent on leave without pay or who are on off-season status are to be notified of the changes to the PSHCP contribution rate. In cases where the employees are responsible for the total contribution, please ensure that they are informed of their new contribution rates.

Should you have any questions regarding this notice, you may contact Stephen Taylor, PSHCP Benefits Officer at Treasury Board Secretariat at 613-952-3250 or Contact Stephen Taylor by E-mail Stephen.Taylor@tbs-sct.gc.ca.

Daphne Meredith
Chief Human Resources Officer

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