First, with the imminent advent of the first day of summer, I want to wish everyone the best of the season and may those wildfires be permanently doused!
It’s benefit premium adjustment season and, like all of the Coalition Unions, ATU is experiencing some ups and downs.
We all know that our benefits are cost-shared with our employer, but by how much? A quick check of our Collective Agreement shows this:
Per Pay Period, effective immediately:
- Major Medical (drugs, physio and stuff).
We pay 25% of the premium ($9.97 Single, $19.93 dependant), City pays 75%
- Dental
We pay 30% of the premium ($14.72 Single, $36.58 dependant) City pays 70%
- Term Life
(self) We pay 50% of the premium (50 cents) City pays 50%
(dependant) We pay 100%of the premium($1.50)
Short Term Disability We pay 0%
Long Term Disability We pay 100% of the premium (amount based on each pay)
First, the LTD Plan: This Plan works together with the STD Plan. It was initiated about 1990, when the City and the Unions collapsed the old “Income Replacement” Plan and started this one. The benefit to employees in paying 100% of the LTD Plan is that a) the cost of STD is borne entirely by the City and b) benefits are not subject to income tax. The employer pays 100% of the cost of STD.
Most are aware that the Union took action during the last round of bargaining (and previous rounds) to contain and reduce the LTD premiums. Our actions have not been limited to bargaining, either. There’s a broad-spectrum grievance at the 3rd stage and heading for arbitration. In it, the Union alleges that the City has mis-managed our Plan and that they bear some liability for the high premium rates we pay.
Our rates remained level last year and are up .03% (about 85 cents per pay –$22/year) this year. To be clear, the Union did NOT approve the .03% increase, but the Plan Rules trumped our intentions. When we look at the huge increases burdened on our sister locals, we see clearly that our strategy is working. Both CSU and CUPE have rates well ahead of ours and no end in sight.
Meanwhile, as time goes on, the effect of the cost-saving changes we made to our LTD Plan will have increasing effect. That we’ve kept the rates level – or nearly level – in today’s environment has proved the value of our efforts. Both Sister Locals are experiencing LTD premium rates at or near 4%, while ours has flattened at around 3.1%
Your Major Medical premiums will rise about 10% this year. This reflects a similar rise in the usage of the Plan.
Our Dental Plan was in a significant deficit position at the beginning of the year and experienced a jump in usage. These rates have risen sharply. The Union will be pursuing a clearer explanation of why this would be.
Term Life insurance premiums will remain the same as last year.
