IAM 4.9.7

Section: PUBLIC SERVICE MANAGEMENT INSURANCE PLAN (PSMIP) - PREMIUMS

Subsection: LONG-TERM DISABILITY INSURANCE

RULE

Premium rates applicable are those approved by the Treasury Board Secretariat (TBS) upon recommendation of the policyholder. The monthly premium for Long-term Disability Insurance (LTD) is based on the member's adjusted annual salary (refer to the Insurance Administration Manual (IAM) Section IAM 4.8.3).

COMMENTS

1. Effective March 1, 1993, both full-time and part-time employees pay the same LTD monthly premium rate.
2. Effective March 1, 1993, the government, as the employer, contributes 85% of the total LTD premium.
3. Effective July 1, 1993, premiums paid by Ontario residents for group insurance are subject to an 8% provincial retail sales tax.
4. Effective June 16, 1985, Quebec residents are subject to a 9% provincial sales tax on contributions.

BACKGROUND

1. Effective September 1, 1990, to February 28, 1993, the government, as the employer, contributed 75% of the total LTD premium.
2. Prior to September 1, 1989, the government, as the employer, contributed a portion of the total premium equal to the employee's share (50%).

PROCEDURE

Where the calculation of a premium results in a fraction of a cent, it is rounded to the nearest full cent. Results of one half cent would be taken as one cent.

PREMIUM RATES

1. Current rates

   1. Employee share - Effective January 1, 2006:

      $0.0525 per $250 of adjusted annual salary or

      $0.21 per $1,000 of adjusted annual salary.

   2. Government share - Effective January 1, 2006:

      $0.2975 per $250 of adjusted annual salary or

      $1.19 per $1,000 of adjusted annual salary.

2. Previous rates

   The monthly premium rates have changed over the years, as shown in the table below:

   1. Full-time employees - rate per $250 of adjusted annual salary

      Period	Employee	Employer
      January 1, 2003, to December 31, 2005	$0.0420	$0.2380
      April1, 2001, to December31, 2002	$0.02625	$0.14875
      January1, 1998, to March31, 2001	$0.04	$0.22
      July1, 1993, to December31, 1997	$0.031	$0.17525
      March1, 1993, to June30, 1993	$0.020625	$0.116875
      September1, 1990, to February28, 1993	$0.034375	$0.103125
      January1, 1990, to August31, 1990	$0.0450	$0.0925
      September1, 1989, to December31, 1989	$0.0425	$0.0875
      April1, 1986, to August31, 1989	$0.065	$0.065
      March1, 1984, to March31, 1986	$0.08	$0.08
      December1, 1981, to February28, 1984	$0.105	$0.105
      September1, 1979, to November30, 1981	$0.11	$0.11
      July1, 1975, to August31, 1979	$0.12	$0.12
      January1, 1974, to June30, 1975	$0.0675	$0.0675
      May1, 1968, to December31, 1973	$0.05	$0.05

   2. Part-time employees - rate per $250 of adjusted annual salary

      Please refer to chart 1A for rates effective March 1, 1993, since both full-time and part-time employee rates are the same.

      Period	Employee	Employer
      September1, 1990, to February28, 1993	$0.04125	$0.12375
      January1, 1990, to August31, 1990	$0.0550	$0.110
      September1, 1989, to December31, 1989	$0.0525	$0.105
      Aprill, l986, to August31, 1989	$0.07875	$0.07875
      March1, 1984, to March31, 1986	$0.0975	$0.0975
      September1, 1982, to February29, 1984	$0.1225	$0.1225

PREMIUM HOLIDAY PERIODS

• Members of the Plan did not have to pay any premiums during the following periods:
• December 1, 1981, to May 31, 1982
• March 1, 1984, to September 30, 1985
• January 1, 1992, to September 30, 1992

REFERENCE

PSMIP Directives, Schedule II, Public Service Management Insurance Plan (PSMIP) premium rates for 2003 (Treasury Board Secretariat (TBS) publication).

Last Update: January 2011

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