The employee contribution rates and benefit entitlements of the PSSA are integrated with the Canada/Québec Pension Plans (C/QPP).

Background

Effective January 1, 1966, the C/QPP were introduced by the Federal Government and the Province of Québec to provide virtually all working Canadians and their families with a degree of earnings-replacement protection in the event of the retirement, disability or death of the wage earner. Initially, employees and employers were each required to contribute 1.8% of earnings up to a level reflective of average wages in Canada and benefits were designed to represent 25% of earnings up to this level.

As C/QPP participation was compulsory, pension plans already in existence at the time (such as the PSSA) required a decision as to whether or not their plans would be amended to account for the new mandatory public pension scheme. There were basically two choices available: a private plan could ignore the introduction of the C/QPP and simply “stack” benefit and contributions rates on top of the C/QPP or coordinate the plan provisions to recognize the contributions required and coverage provided under the C/QPP. In general, this decision was, for the most part, determined in accordance with the level of protection afforded by the private plan.

For example, if the private plan in question provided a very basic level of pension protection, or was a defined contribution (money purchase) plan, then the decision was likely not to amend or coordinate with the features of the C/QPP. On the other hand, more generous pension arrangements that already provided a significant level of replacement income were most likely to opt for integration with the C/QPP.

In 1966, the existing Federal Government decided that the terms of the PSSA would be integrated with the provisions of the C/QPP. This decision was based primarily on the fact that the PSSA was providing an appropriate level retirement income for employees earning below the average industrial wage and these individuals were already diverting a significant portion of their income to retirement savings in the form of superannuation contributions. In other words, for Federal Government employees, the retirement income system, composed of Old Age Security (OAS), C/QPP, and employer-sponsored pensions, would replace approximately 85% of the pre-retirement income of a PSSA participant earning at or below the average wage. To require such employees to provide themselves with an even higher replacement rate, by increasing contributions above what was already required under the PSSA, was considered to be too great a diversion of earnings from current consumption needs.

As a result, the Federal Government, in consultation with the Advisory Committee on the PSSA, adopted the following integration method:

1. The combined contributions under the superannuation plan and the C/QPP would equal the existing contribution rates under the PSSA.
2. The superannuation benefit earned before the inception of the C/QPP would remain the same. In other words, for years prior to 1966, there would be no integration in the benefit calculation. Furthermore, as a result of “full” C/QPP benefits not being payable prior to age 65, there would be no benefit reduction between ages 60 and 65.
3. At the time the C/QPP retirement benefit became payable: a) the portion of the superannuation benefit based on the salaries on which “split” contributions applied would be reduced from 2% to effectively 1.3% of average salary for each year of service after C/QPP commenced and; b) The balance of the superannuation pension benefit based on the salaries above the Yearly Maximum Pensionable Earnings (YMPE) on which only the PSSA contributions had been paid would be 2%;
4. The reduction described in 3a) above would be applied immediately in the case of a disability retirement, where the disabled employee was entitled to disability benefits both under C/QPP and the PSSA.
5. There would be no reduction in survivor and children’s benefits under the PSSA, despite the provision of these benefits under C/QPP. This decision was based both on the recommendation of the Department of Insurance which had advised against integration given the number of very small survivor and children benefits payable under the PSSA, as well as the administrative difficulties which would result because of the various criteria which had to be met to qualify for a survivor’s benefit under the C/QPP and the varying formula that existed to determine the amount of the benefit that would be payable under that plan.

As a federal statute, the PSSA is not subject to “negotiations” with federal public service bargaining agents.

Therefore, the input of the PSAC to the CPP/QPP integration discussions in 1965-66 was restricted to the limited legislated mandate provided to representatives on the Advisory Committee of the PSSA. The current C/QPP integration formula represents the extent of the protections the PSAC was capable of attaining in this forum to protect the interests of the membership and their families.

The entire issue of the coordination of the PSSA with the C/QPP is further complicated by the revisions introduced to the public pension system by the Federal Government in agreement with the majority of the provinces. Since 1987, the required contribution rates to the C/QPP have increased considerably. The resulting implications for the PSSA are illustrated in Table 4. As of January 1, 2003, employee contribution rates to C/QPP have risen to 4.95%. As a result, had a decision been made in 1966 to “stack” the contribution rates and benefit formulae of the C/QPP and the PSSA, as of 2003, 12.45% of salary (below the YMPE) of federal public service employees would be deducted for purposes of pension contributions. C-QPP Reduction Formula At present, upon attaining the age of 65 (or upon entitlement to C/QPP disability benefits), a retiree in receipt of a PSSA benefit will have his/her superannuation benefits reduced by the following pre-determined formula as specified in legislation:

“.007 x number of years of contributory service since January 1, 1966 x average maximum pensionable earnings (AMPE), or average salary, whichever is lower.”

As a result of legislated amendments incorporated in Bill C-13 (Budget Implementation Act) and which received Royal Assent on June 22nd, 2006, the C/QPP offset reduction factor will be revised in accordance with the following schedule:

2008.006852009.006702010.006552011.006402012.00625

The AMPE refers to the average of the C/QPP earnings ceilings (YMPE) for the year of retirement (or for the year of entitlement to C/QPP, if this occurs before retirement) and the four preceding years. The C/QPP ceilings for 2004 through to 2008 are $40,500, $41,100, $42,100, $43,700 and $44,900 respectively. The AMPE for 2008, therefore, is $42,460. If an employee’s average salary is lower than the AMPE, the actual average salary would be used in the calculation.

By way of example, an employee with 35 years of service and an average salary in excess of the AMPE who retires on December 30, 2008, would have his/her PSSA benefit reduced at age 65 (or upon receipt of C/QPP disability benefits) by $10,179.79 per annum (.00685 x 35 x $42,460) or $848.32 per month. This amount could vary according to years of contributory service and/or average salary. Please note that in 2008, the maximum C/QPP retirement benefit payable from age 65 is $884.58. Departmental pay and benefits specialists provide terminating employees with a projected estimate of the C/QPP reduction which would apply at either age 65 or the commencement of receipt of C/QPP disability benefits.

If entitled to an immediate monthly superannuation benefit upon termination of employment, PSAC members may continue their coverage, as a pensioner, under the Public Service Health Care Plan (PSHCP) and the applicable premiums will be deducted from monthly pension cheques. PSAC members not Some Useful Tips – Fifth Edition 2008 34 Retiring from the Public Service of Canada participating in the PSHCP as employees can elect to enroll as a pensioner and pay the appropriate premium. For residents of Quebec, the employer’s portion of PSHCP premiums is considered a taxable benefit and subject to Quebec income tax. Detailed information on current PSHCP premium rates and coverage for pensioners can be obtained by contacting the plan administrator (Sun Life Financial) at 1- 888-757-7427 (247-5100 in the National Capital Region) or by consulting the plan website.

For PSAC members participating in the PSHCP as employees, the PSHCP identifier number will remain the same as a pensioner.

In the event of a death of a PSHCP participant, coverage can continue for the eligible spouse and dependants.

If upon the date of retirement, the PSAC member opts for a deferred annuity, eligibility for PSHCP coverage can be re-established within 60 days of the commencement of the annuity benefit. In these situations, the PSAC advises that the application for renewal of PSHCP coverage be made well in advance of the start of deferred annuity payments in order to avoid a possible late application which requires an initial three-month waiting period.

The PSAC always recommends verifying that the PSHCP premium deductions from monthly superannuation cheques correspond to the appropriate level of coverage requested/required by the employee/pensioner.

The DI plan is a long-term disability insurance plan negotiated between the Employer, Treasury Board and the insurance company, Sun Life Assurance.

Membership in the DI plan is generally compulsory, and is open to you if you are a full-time or part-time employee, (including seasonal employees) subject to certain conditions. It covers employees of the federal government departments and most agencies (including the Canada Revenue Agency, Parks Canada and the Canadian Food Inspection Agency).

You are automatically covered if you were hired after:

• November 1970, for full time employees;
• January 1, 1973, for seasonal employees; and
• September 1, 1982, for part time employees.

Most people hired before these dates signed up when the insurance was made available.

You can join now if you are not already covered.

Take the time to join even if you don’t have a disabling condition to avoid the shock of finding out you are not covered when you need it most. If you could have joined back then, you can still get coverage. Send a completed Declaration of Personal Insurability to Sun Life. You can get this form from your Human Resources department. For policy related information, visit the Disability Benefits web site. You can also ask Human Resources for general information about the DI plan. 

Le Régime d’assurance-invalidité est un régime de longue durée négocié entre l’employeur, le Conseil du Trésor, et la Compagnie d’assurance-vie Sun Life.

La participation au régime est habituellement obligatoire. Vous y êtes admissible si vous êtes employé à plein temps ou à temps partiel (ou saisonnier) et à certaines conditions. Les membres du personnel des ministères fédéraux et de la plupart des agences (dont l’Agence des douanes et du revenu du Canada, Parcs Canada et l’Agence canadienne d’inspection des aliments) sont tous assurés.

Vous êtes assuré d’office si vous avez été embauché :

• après novembre 1970, si vous êtes employé à plein temps;
• après le 1er janvier 1973, si vous êtes employé saisonnier;
• après le 1er septembre 1982, si vous êtes employé à temps partiel.

La plupart des personnes qui ont été embauchées avant ces dates ont adhéré au Régime dès qu’il a été offert.  Vous pouvez y adhérer maintenant si vous n’êtes pas déjà assuré.

Ça vaut la peine, même si vous ne souffrez pas d’une affection invalidante. Vous vous éviterez ainsi une mauvaise surprise le jour où vous en aurez besoin. Si vous n’avez pas réintégré le régime à ce moment-là, vous pouvez encore le faire. Envoyez à Sun Life le formulaire « Déclaration personnelle d’assurabilité », que vous pouvez obtenir auprès des Ressources humaines. Pour des renseignements relatifs à la police d’assurance, consultez le site web sur les prestations d’invalidité. Vous pouvez aussi demander aux Ressources humaines des renseignements généraux au sujet du Régime d’assurance-invalidité.

Le traitement et l’approbation d’une demande de règlement pour l’assurance-invalidité prennent du temps. Attendez-vous à des retards. Dès que votre demande est acceptée, les paiements commencent :

• soit à l’expiration de votre congé de maladie payé ou de votre congé pour accident de travail; ou si la durée de ce congé est inférieure à 13 semaines;
• soit après 13 semaines d’invalidité (« délai de carence »).

Il n’est pas nécessaire que les 13 semaines d’invalidité soient ininterrompues. Elles peuvent, dans certains cas, être accumulées pour la même invalidité sur une période d’un an.

Un délai de carence (qu’on appelle aussi parfois « période d’attente ») est normal dans les régimes d’invalidité de longue durée. N’attendez pas que le « délai de carence » soit terminé. Demandez vos prestations dès que vous avez raison de croire que votre absence du travail sera plus longue que le retard. Vous pourriez avoir droit à des prestations d’assurance-emploi entretemps.

Vous pourriez avoir assez de congés de maladie pour tout le délai de carence. Vous pourriez aussi avoir à la fois assez de congés de maladie et de prestations d’assurance-emploi. Il est possible, toutefois, que, même après les 13 semaines, vous n’ayez pas encore réussi à faire valoir votre droit à des prestations d’assurance-invalidité ou à une indemnisation pour accident du travail. Si vous attendez toujours un paiement et n’avez aucun revenu, adressez-vous aux services sociaux (généralement administrés par votre municipalité).

Si l’invalidité est liée au travail et que vous vous retrouvez en difficultés financières, vous pouvez vous adresser aux RH, qui porteront la question à l’attention de Sun Life.

En pareil cas, la  Sun Life pourrait verser   des prestations à l’employé. Porter en appel une décision de la CAT est un long processus, et vous voudrez peut-être faire une demande pour recevoir ces prestations exceptionnelles. N’attendez pas, appelez votre représentant syndical si vous avez besoin d’aide.

Vous devrez signer une déclaration attestant que vous allez maintenir votre demande de règlement à la CAT jusqu’au dernier palier d’appel. Si la commission décide de vous payer, elle rembourse d’abord à Sun Life les sommes  que celle-ci vous a versées.

Il est toujours prudent d’épargner pour les jours difficiles quand tout va bien et ainsi atténuer le choc en cas de difficultés financières. Facile à dire, mais pas aussi facile à faire. Lorsque vous obtenez un paiement rétroactif, le paiement d’heures supplémentaires, etc., mettez-en une partie de côté. Vous pouvez aussi songer à reporter vos remboursements de prêts ou de prêts hypothécaires si vous êtes toujours sans revenu. Il vaut mieux en parler avant plutôt que de tout simplement ne pas faire un remboursement. 

Return to work (RTW) programs are meant to help with a worker’s return to their pre-leave employment, when the worker is ready to return to work and with an appropriate transition period. Return to work programs are subject to the same general principles as for any accommodation, since a return to work program is really a specific type of accommodation program.

The mandate of return to work process should be to ensure that tasks and duties assigned in an individual Return to Work Program are meaningful and productive and have value for the worker. The Return to Work should have a rehabilitative focus. If pre-leave employment is not an option, then all of the accommodation options should be considered

Return to Work Programs should be seen as transitional and for a fixed duration. Permanent measures to support a worker who is permanently disabled are best framed as accommodation measures.

Most organizations that have benefit plans also have some form of disability insurance with a focus on rehabilitation.

Who is covered?

• A RTW Program should include employees with permanent disabilities as well as temporary disabilities.

• Disability insurance applies to workers who have completed six months of employment.

• Qualifying conditions exist for workers’ compensation cases.

When does a return to work situation arise?

Typically, return to work situation arise from:

• the return of a worker who has been receiving workers compensation;

• the return of a worker who has been on disability insurance;

• the return of someone who has been injured or who has become disabled, but who has not qualified for income replacement programs (workers compensation or disability insurance);

• long term leave situations.

How does it work?

• Return to Work Programs should lay out the steps that need to be taken to support the returning worker.

• Return to Work discussions should ensure that the root causes of the absence from the workplace are identified and eliminated. .

• Individual assessments are key to Return to Work Programs. These programs should not be seen as one size fits all measure but should respond to the needs of the individual’s return to work situation. In addition, work related and non work related disabilities should be treated in a similar manner.

• Job task analysis ensures that the job duties and tasks are assessed (using job related criteria) and compared with the functional limitations of the returning worker. Typically, job task analysis will assess physical requirements of job duties (tools used, postures required, endurance...) and will involve observing workers performing job duties. In cases of psychiatric disabilities, factors such as communication, exposure to conflict, the nature of their contacts with others would also need to be assessed. The returning worker should be an active participant in the job analysis and evaluation.

• Timeframes spelled out in the Return to Work Plan should not be arbitrary but should respect the needs of the returning worker. Having timeframes associated to key activities ensures accountability for their implementation.

• Medical assessments should be completed by the medical practitioner who is best placed to understand the medical condition of the returning worker - her/his treating physician. Physicians may be able to provide a diagnosis and treatment - but not be able to provide a functional analysis. Additional expertise may be required. In cases where a disability insurer or workers compensation board is involved, medical information is normally provided to the insurance company or the board (not the employer), and they will normally receive more information than employers are entitled to (e.g. a diagnosis). This information must be kept confidential and detailed information should not be provided to the employer.

Return to Work Programs should be consistent with the collective agreement. On the other hand, collective agreements cannot stand in the way of the duty to accommodate

• Early assistance can make a difference in the successful re-integration of a returning worker. As an example, some research shows that the longer a workers stays away from the workplace, the less likely they will be able to return. . At the same time, too early a return may jeopardize the rehabilitation of the returning worker or worsen the medical condition.

• Recourse rights in return to work situations can be exercised via:

• Disability insurance appeals (not before neutral third party);

• Workers compensation appeals tribunals;

• Grievances;

• Human rights complaint.

• The support by co-workers is critical to a successful return to work situation, particularly when the situations involve job tasks modifications or job rebundling.

Votre demande est d’abord examinée par un expert en sinistres à Sun Life. Si les renseignements que vous avez donnés ne sont pas suffisants pour que Sun Life puisse prendre une décision, elle vous demandera des renseignements plus précis et plus détaillés. Conservez des copies de tout ce que vous lui envoyez. Si la preuve est suffisante, votre demande est approuvée. Sinon, elle est rejetée.

En pareil cas, Sun Life vous demandera plus de documents. Si, après un autre examen, votre demande est encore rejetée et que vous n’acceptez pas la décision, vous pouvez demander au Service de gestion de l’assurance-invalidité de Sun Life de réexaminer votre cas. Ce comité, composé d’analystes supérieurs des demandes de règlement, peut renverser la décision d’un expert en sinistres.

Pour faire appel, envoyez une lettre à l’adresse suivante :

Service de gestion de l’assurance-invalidité
Services des règlements – Régime collectif
Sun Life du Canada
C.P. 12500, succursale CV
Montréal (Québec) H3C 5T6

Pour obtenir des numéros de téléphone et d’autres coordonnées, visitez le site Web de Sun Life.

Vous pouvez aussi remettre votre lettre aux Ressources humaines ou demander à votre Élément ou à votre bureau régional de s’occuper de votre appel. N’oubliez pas d’indiquer votre numéro d’assurance sociale dans votre lettre et dans tous les documents que vous présentez.

Après avoir fait appel :

Sun Life vous indiquera les documents dont elle a besoin Elle répondra en priorité aux questions des Ressources humaines sur l’état de votre appel. Dans les cas d’urgence, Sun Life répond habituellement aux questions que vous, ou votre représentant, lui posez directement.

Ayez sous la main le numéro de votre certificat et votre numéro de contrôle.