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FI NEWS : January 2001
Health and Dental Care Plans, Pensions
The administration and financial operation of the Health and Dental care plans are the responsibility of the National Joint Council (NJC), the Boards of Management of the Dental Care Plan, Health Care Plan and the Disability Insurance Plan.
These organizations hear and resolve disputes regarding eligibility and claims, and monitor the performance of the plans. They also recommend changes to Treasury Board which has the final authority in the decision making process.
PUBLIC SERVICE HEALTH CARE PLAN
Negotiations between Treasury Board, NJC, Unions, and pensioners have resulted in an improved five-year agreement for the management of the Public Service Health Care Plan. Effective April 1, 2000. Under this agreement, Treasury Board will adjust PSHCP employer contributions based on membership usage and inflation to ensure the financial stability of the plan.
Members' benefits are protected and monthly contributions for Level 1 - basic health care coverage will not increase during the five-year duration of the agreement. The claims payment and appeals processes will remain unchanged.
PUBLIC SERVICE DENTAL CARE PLAN
Negotiations between the Treasury Board, NJC, Unions and pensioners have provided a five-year agreement covering the management of the Public Service Health Care Plan.
The negotiations for the employees' dental plan have resulted in the following improvements:
Effective January 1, 2000:
Reimbursement will be based on the 1999 schedule of fees. In future years, the plan will automatically use the fee schedule of the previous year without the requirement for negotiation.
The frequency base for scaling and root planing is now a "calendar year" instead of a "running 12 month period".
In cases of documented periodontitis, up to an additional six time units of root planing/scaling shall be allowed with the pre-approval of a treatment plan.
Effective January 1, 2001:
The maximum reimbursement amount for a calendar year per person insured for eligible dental expenses (excluding orthodontic services) shall be $1300.00
The Dental Plan for Pensioners will come into effect January 1, 2000. Treasury Board will pay 60% of the premiums.
PENSIONS
The Budget Implementation Act, 1999, Bill C-71 has resulted in an improved pension calculation formula. Pensions will now be calculated based on the best five consecutive years of service rather than six years in the previous formula. In addition, the CPP/QPP integration formula will now result in smaller reductions to plan benefits when the member begins to receive CPP/QPP at age 65.
On a less positive note, on September 14, 1999, Bill C-78, an Act to establish the Public Sector Pension Investment Board received Royal Assent. This bill permits the government to confiscate the $30 billion surplus from the employees' pension plan and resulted in a pension contribution increase on January 1, 2000, which is expected to be the first of many.
Several unions and associations have launched legal action in the Ontario Supreme Court to challenge the legality of Bill C-78.
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