1. Who is the new Public Service Dental Care Plan (PSDCP) and Pensioners’ Dental Services Plan (PDSP) administrator?
On June 28, 2023, the Government of Canada announced that the Canada Life Assurance Company (Canada Life) was awarded the Administrative Services Only (ASO) contract for the PSDCP and PDSP.
An ASO contract means the Government of Canada funds its own employee benefit plans but hires a third-party administrator, often an insurance company, to perform administrative services such as processing and reimbursing claims. The contract award for the dental plans was the outcome of a competitive procurement process led by Public Services and Procurement Canada (PSPC).
As of November 1, 2024, following a transition period, Canada Life will begin processing claims for the PSDCP and PDSP, under the new contract. Until further notice, the administrators of the dental plans remain the same. PSDCP members must continue to send their claims and requests to Canada Life and PDSP members must continue to send their claims and requests to Sun Life.
2. Are other benefit plans affected by the selection of a new Public Service Dental Care Plan (PSDCP) and Pensioners’ Dental Services Plan (PDSP) administrator?
No other benefit plan is affected by the new PSDCP and PDSP administrator. The disability insurance and life insurances are separate plans governed by different contracts. They remain under the same administrators with no changes to their benefits.
Canada Life became the new Public Service Health Care Plan administrator July 1, 2023, under a separate Administrative Services Only contract.
3. What does the new PSDCP and PDSP Administrative Services Only (ASO) contract offer?
The new contract will be administered by Canada Life, continuing the administration of the PSDCP and taking over the day-to-day operations of the PDSP. Both dental plans will continue to remain separate and distinct, but the administration will be performed by one company.
The objective of the new contract is for the administrator to provide ongoing excellence in claims processing and payment services. The new contract will offer the following services for up to 14 years:
claims processing and payment services
membership management services
provider registration and management services
audit and claim verification
reporting services
member communication and information services
provider communication and information services
financial management and controls services
quality assurance program
strategic review and advice services
contribution remittance services
The contract will also contribute to the Government of Canada’s green procurement and diversity and inclusion goals.
4. How was the new PSDCP and PDSP administrator selected?
The new administrator for the dental plans was selected through an open, fair and transparent competitive procurement process. This process seeks industry feedback on the Government of Canada’s requirements for the administration of the PSDCP and PDSP. Following the procurement process, a Request For Proposal (RFP) inviting industry to submit formal bids was published on Public Service Dental Care Plan and Pensioners’ Dental Services Plan - Administrative Services Only - Tender Notice | CanadaBuys . Each bid was reviewed by subject matter experts and scored on the RFP criteria.
5. Why is the Government of Canada changing the PSDCP and PDSP administrators?
The Government of Canada, as sponsor of the PSDCP and PDSP, competitively retenders the PSDCP and PDSP Administrative Services Only contract as part of the continuous life cycle of a public service benefit plan. This helps to ensure that services for members remain modern and competitive.
6. When were the PSDCP and PDSP contracts last retendered?
The PSDCP is currently administered by Canada Life, under an open-ended Administrative Services Only (ASO) contract established in 1987.
The PDSP is currently administered by Sun Life Financial, under the Administrative Services Only (ASO) contract last awarded in 2006.
7. What does the new contract of the PSDCP and PDSP mean for dental benefits?
The transition to the new dental administrator will not change your dental benefits or the cost of your dental plan. The award of the new contract to Canada Life changes who will administer and process claims for the PSDCP and PDSP only.
All PSDCP benefit changes happen after negotiations between the employer and the Boards of Management. These Boards are: the National Joint Council (NJC) Board, Public Service Alliance of Canada (PSAC) Board, Canadian Armed Forces (CAF) Board and the Royal Canadian Mounted Police (RCMP) Board.
The PDSP benefits are established by the Government of Canada.
Until administration of the new contract begins, the current plan administrators, Canada Life (PSDCP) and Sun Life (PDSP) will continue to administer your dental care plan benefits.
8. Approximately how many plan members are covered under the PSDCP and PDSP?
The PSDCP covers approximately 900,000 members and dependants
The PDSP covers approximately 550,000 members and dependants
How to prepare for the new contract
1. What do I need to do to prepare for the transition to the new contract?
You will receive regular updates on the transition progress of the new dental contract.
In the meantime, be sure to keep your contact information up to date with the Pay Centre or your departmental compensation office, Pension Centre or pension office and your current respective plan administrator, Canada Life (PSDCP) or Sun Life (PDSP).
2. Has the government engaged with bargaining agents (unions)?
Yes. Throughout the retendering process, the Government of Canada has engaged with bargaining agents through their respective dental Boards of Management, comprised of the National Joint Council (NJC) Board, Public Service Alliance of Canada (PSAC) Board, Canadian Armed Forces (CAF) Board and the Royal Canadian Mounted Police (RCMP) Board and the PDSP Board.
3. Under the new contract, will my dentist still be able to send in claims on my behalf?
Yes. Dental providers will still be able to send in claims on behalf of their patients.
