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2016 Disability Benefit Plan Premium Rate Change
To: M&P, Administrative Executive, and CUPE 2278 ELI Staff Enrolled in the M&P Disability Benefit Plan
From: UBC Human Resources and M&P DBP Governance Committee
The long term disability plan for eligible M&P, Administrative Executive, and CUPE 2278 ELI Staff members is called the Disability Benefit Plan (DBP). This is a mandatory, employee-paid plan that provides a monthly income after a six month waiting period for those who meet the definition of total disability under the plan. The DBP is an insured benefit administered by Sun Life Financial, with oversight from the M&P DBP Governance Committee. Premiums for this plan are deducted from each of your pay cheques.
Each year, effective January 1st, the premium rate is reconsidered based on claims experience, demographic data of plan members, and potential future claims experience of the plan. The rates can go up or down each year, depending on the above factors. The DBP premium rate proposed by the Insurer (Sun Life) was recently reviewed and negotiated by the M&P DBP Governance Committee and their Benefits Consultants.
As a result of the review, your 2016 DBP premium rate will be 1.021% of earnings. This is a reduction from the 2015 rate of 1.049%. If you’re a monthly employee, this new premium rate will be reflected on your January 15, 2016 pay cheque. If you’re an hourly employee, the new premium rate will be reflected on your January 23, 2016 pay cheque.
This will be the third year of reduced DBP premium rates. Here’s the history of premium rates as a percentage of earnings:
- 2013: 1.346%
- 2014: 1.310%
- 2015: 1.049%
- 2016: 1.021%
The M&P DBP Governance Committee will continue to regularly review the disability plan to ensure that it meets the needs of M&P, Administrative Executive, and CUPE 2278 ELI plan members, and that premium rates remains fair and financially competitive.
For Additional Information
For more information about the M&P DBP, please visit the following web page:
Administrative Executives: www.hr.ubc.ca/benefits/irp-dbp/administrative-executive/spp/
CUPE 2278 ELI Staff: http://www.hr.ubc.ca/benefits/irp-dbp/cupe-2278/
If you have any questions, please contact Stephanie Mah at 604-822-6823 or email@example.com.