Our benefit plan is set up for annual renewal, which means that components of our plan and the amount we pay may change every January. Great West Life looks at its costs and expenses compared to the amount that our members and the employer contribute through our payroll deductions and determine any adjustments that are needed to cover the plan. Unfortunately, the employer’s contributions, as per our Collective Agreement remain the same from year to year. Therefore, our members absorb any additional costs associated with any benefit premium increases. As this Friday is the first payroll period of the 2017 year, if you carry benefits you will notice an increase to your deductions.
Due to an increase in prescription use, an increase in specific medication costs and an increase in the number of members receiving Long Term Disability(LTD) funds, Great-West Life proposed a significant increase to our benefit plan. Thanks to the efforts of Diana, our benefits broker associate and through her knowledge and deal-making skills, the increase costs were negotiated down to 10.4% for 2017.
In light of the time it has taken to find out information regarding the Benefit Trust and due to the delay in implementation, the Benefit Committee and I have decided to advise our benefit broker to take our plan to market to see if there are more advantageous savings with other insurance companies. We will keep you posted as to our findings and any changes that may take place from either the Central Benefit Trust, or going to market.
We have attached the 2017 Benefit Chart which details the breakdown of increases for each Benefit category. It outlines if it is taken as a single person, or for a family.
Please also note that 10 month employees will have additional deductions in order to cover the costs for benefits for July and August.
If you have any questions, please feel free to call or email the office at opseu330@bellnet.ca or 705-739-7232
Kelly Martin
President
