LTD Plan | Annual Review and Premium Rebate

Posted September 26, 2016

To All CSU 52 Members at The City of Edmonton and Edmonton Public Library:

As you are aware, every pay period you are deducted premiums for Long Term Disability (LTD) Plan coverage. This coverage is critical if you become ill or disabled and have to be away from work for longer than eighty-five (85) work days.

On an annual basis, the plan is reviewed by an independent actuarial firm that specializes in group benefit plans. This audit ensures that the plan has collected sufficient premiums to cover any potential payouts when employees need to use this coverage. This audit is presented to the Union and Human Resources.

As part of the review, the Union looks at the current premium rates to determine if the rate should be increased, decreased or left at the current percentage of 1.91% of your pay. The decision is to hold the premiums at the current rate.

When an employee is on LTD, the payments received are non-taxable. In addition, the LTD Plan pays the employee’s portion of benefit premiums. The employee’s payments are based on their pre-disability rate of pay and they are not eligible for any negotiated wage increases for the period they are receiving LTD.

The Union reviews the performance of the plan each year, and if there is a surplus, current LTD recipients are given a cost of living adjustment. This year, there is a surplus and recipients will receive an adjustment equal to the negotiated wage increase in our collective agreements.

Additionally, current members will be receiving a one-time rebate. All LTD premiums paid in the 2015 payroll year will be rebated in Pay Period 21, and will be reflected on the October 25, 2016 pay day. This rebate is non-taxable and will be reflected on the pay advice record as a negative amount, indicating a reversal of premiums.

Should you have any questions about this rebate, please contact the Union Office at 780-448-8900 or info@csu52.org

In Solidarity,
Lanny Chudyk President

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