CD 2008-019: Information Notice to Employees

Public Service Health Care Plan (PSHCP) Agreement for the maintenance of coverage and payment of PSHCP contributions during a period of leave without pay

As you may be aware, effective April 1, 2006, there were a number of changes to the PSHCP. One of these changes included the collection of PSHCP contributions for employees on authorized LWOP. For more information on these changes, we have attached a copy of the PSHCP Bulletin #18 issued in March 2006.

Our files indicate that you are on LWOP. If you are currently covered by the PSHCP while on LWOP, you are required to complete and sign this agreement, to indicate your choice of payment options.

You may also take this opportunity to cancel your coverage should you wish to do so. However, coverage cannot be cancelled retroactively.

You are required to sign this agreement and return it to your compensation office within two weeks upon receipt of this notice. Coverage under the PSHCP continues while you are on LWOP unless you provide notice in writing stating that you opt out of the plan.

Please note that if you are not covered by the PSHCP while on LWOP, you should not complete this agreement.

PSHCP Coverage:

I wish to continue my PSHCP coverage while on authorized LWOP.

Yes ______ No _______

Opting out of the plan while on LWOP is considered as a lapse in coverage only and will not require a new application nor a three-month waiting period when you are retaken on strength.

Payment of PSHCP contributions (if applicable)

Depending upon the length and type of LWOP, you may be required to pay PSHCP contributions.

If you have indicated that you wish to continue PSHCP coverage while on LWOP, you must agree to pay all required PSHCP contributions.

In the event that you are required to pay PSHCP contributions, you must choose one of the following options.

• Option 1 - Pay-as-you-go: (Payment of PSHCP contributions during your period of LWOP)
  
  You can pay your contributions by sending monthly or quarterly payments to your compensation advisor by personal cheque payable to the "Receiver General for Canada". If you fail to remit your contributions in advance at any point during your LWOP, your coverage will continue. However, unless you advise your compensation advisor in writing that you wish to opt out of the plan, you will be deemed to have agreed to pay all outstanding contributions upon termination of your LWOP through salary deduction, lump sum payment or monies owing on termination of employment. Please note that coverage cannot be opted out retroactively.
• Option 2 - Payment of PSHCP contributions at the end of your LWOP
  
  IMPORTANT - If you choose this option, you agree to pay all outstanding PSHCP contributions upon the termination of your LWOP, whether the termination is a result of your return to work, your retirement, or your termination of employment. Note: If you choose this option, the amount to be paid at the end of your LWOP could be significant. We recommend that you estimate the amount you will owe and ensure that this is the method of payment you wish to use.

Select one of the following payment options:

• Option 1 -
  I choose the pay-as-you-go option ________. Please select (a) or (b) below:
  
  
  1. I will send personal cheques, monthly in advance ____
  2. I will send personal cheques, quarterly in advance ____
  OR
   
• Option 2 -
  I choose to pay PSHCP contributions upon termination of my LWOP ___. Please select (a) or (b) below:
  
  
  1. Deductions at source upon termination of my leave without pay ___
  2. Lump sum payment upon termination of my leave without pay _____

NOTE: If you cease to be employed for any reason, outstanding PSHCP contributions will first be taken off any termination payments payable to you, including severance pay, unpaid vacation leave, unpaid salary, and any other amount payable to you by the Crown.

If there are still outstanding PSHCP contributions to be paid, a lump sum payment will be required from you. You must provide a personal cheque payable to the "Receiver General for Canada" for the full outstanding amount that was not recovered from any monies owing upon your ceasing to be employed. If you are entitled to an immediate annuity, you may choose to have the full outstanding amount recovered from your pension payment. Please contact your compensation advisor to obtain the exact amount owing.

Please note that the following tax implications continue to apply:

• Taxable benefits for employees residing in Quebec – the employer's share of the PSHCP contributions continue to be a taxable benefit. There will be no change to the current process in place for taxable benefits.
• Retail Sales Tax for Ontario and Quebec – employees residing in Ontario and Quebec will continue to be required to pay their share of the Retail Sales Tax on PSHCP contributions, as before.

I agree to all of the terms of the above PSHCP agreement:

__________________________________
Signature of employee

__________________________________
Date

Please forward this signed agreement immediately to your compensation advisor at the address below to ensure continuous coverage under the PSHCP.

(Compensation advisor's name)



(Compensation advisor's phone number)



(Departmental address)