Public Service Health Care Plan (PSHCP) New Employer Contribution Rates Effective June 1, 2012

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

The purpose of this notice is to inform Compensation Managers that effective the monthly employer contribution rates for the Public Service Health Care Plan (PSHCP) will increase. The PSHCP employee contribution rates will remain unchanged at this time.

This year, the implementation of this rate change will occur in the month preceding the reported effective date. The result, PSHCP contributions collected in May 2012 must increase in accordance with this notice. This will mostly affect members required to remit the employer share due to their Leave Without Pay type and participating separate employers who remit, both the employer and employee shares.

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

Bayla Kolk
Assistant Deputy Minister
Pensions and Benefits Sector

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