Employers to start paying 70% share of LTD plan premiums ahead of schedule
The transfer of responsibility for funding the Long Term Disability plan for members of the Health Science Professionals Bargaining Association (HSPBA) will come into effect a week ahead of schedule.
Negotiated in the recent round of bargaining, members will see a 70 per cent reduction in their contribution to the premiums. Since 1986, the LTD plan had been wholly supported by HSA members. Under the new collective agreement, employers are responsible for paying 70 per cent of the premium, while employees pay 30 per cent. The change will be effective the pay period beginning July 28, 2006. Members should see a reduction in premiums on their next pay cheques.
-The shift in the LTD plan fund was the cornerstone of the Health Science Professionals collective agreement negotiated in the spring," said Ron Ohmart, HSAs Executive Director ... Labour Relations.
-In this pay period, members will start to realize the benefit of the shift in LTD funding with the resulting increase in their net take-home pay," he said.
The change from a self-supported plan to a shared plan will result in significant savings for HSA members in the HSPBA. For example, for an HSA member with regular earnings of $50,000 per year, the change in the plan means a net savings of $1,100 every year.
Members are asked to check their pay stubs to ensure the change has been made. If there is no change, please contact your steward.