Public Service Health Care Plan New Contribution Rates Effective April 1, 2015

Date: January 2015

To: Compensation Managers, Heads of Human Resources, Participating Separate Employers, Pay/pension system administrators

The purpose of this notice is to inform plan members and employers participating in the Public Service Health Care Plan (PSHCP) that effective April 1, 2015 the monthly Pensioner Supplementary contribution rates for the PSHCP will increase. The recently negotiated changes resulted in a need to conduct a rate analysis to ensure the Plan's continued sustainability. This analysis was conducted by the Claims Administrator, Sun Life, and reviewed by the Office of the Superintendent of Financial Institutions and Treasury Board of Canada Secretariat (TBS) officials. At the same time, the opportunity was taken to standardize the employer contribution rate. This year, all coverage categories are $108.88 per month. Previously there were minor variations in the employer cost to help distinguish between coverage levels and types. The new eligibility feed process eliminated the need for these variations.

Pay and Pension system administrators have already been advised of the changes to ensure the necessary programming is complete for the March 2015 payroll. Furthermore, in accordance with the agreement that was reached, the TBS annual rate revision will now be completed annually for the next four years with an April 1st implementation.

Reminder: The portion of the PSHCP contribution rate paid by the employer is a taxable benefit for members residing in Quebec.

Should you have any questions regarding this notice, please contact the Pensions and Benefits Sector at Contact Pensions and Benefits Sector by E-mail : pbs-spas@tbs-sct.gc.ca.

Bayla Kolk
Assistant Deputy Minister
Pensions and Benefits Sector