Memo: 2018 Disability Benefit Plan Premium Rate Change for CUPE 116 (Dec. 1, 2017)

Memorandum
Date: Dec. 1, 2017
From: Human Resources and CUPE 116
To: CUPE 116 employees enrolled in the Disability Benefit Plan (DBP)
Subject: 2018 DBP Premium Rate Change for CUPE 116


The long-term disability plan for eligible CUPE 116 members is called the UBC Disability Benefit Plan (DBP). This is a mandatory, employee-paid plan that provides a monthly income, after a six-month waiting period, for those who meet the definition of total disability under the plan. The DBP is administered by Sun Life, with oversight from your union (CUPE 116) and UBC through the CUPE 116 Governance Committee.

The premium rate is reconsidered every January 1st, and takes into consideration the number of claims during the most recent five years, membership demographic data, and potential future claims. The DBP premium rate is proposed by the insurer (Sun Life), and reviewed by the university’s benefits consultant (Willis Towers Watson). A governance committee that includes members of CUPE 116 and the university review and approve the final rate that is recommended by the consultant.

For the upcoming year, the 2018 DBP premium rate will be 1.142% of earnings, which is lower than the 2017 rate of 1.445%. For monthly employees the new premium rate will be reflected on Jan. 15, 2018, pay cheques. For hourly employees, the new premium rate will be reflected on the Jan. 23, 2018, pay cheque.

The DBP premium rate has remained stable and decreased in previous years as follows:

  • 2013: 2.070%
  • 2014: 2.070%
  • 2015: 1.914%
  • 2016: 1.474%
  • 2017: 1.445%
  • 2018: 1.142%

The CUPE 116 DBP Governance Committee will continue to regularly review the disability plan to ensure that it meets the needs of CUPE 116 plan members and that premium rates remain fair and financially competitive.

For Additional Information

For more information about the CUPE 116 DBP, please visit  http://www.hr.ubc.ca/wellbeing-benefits/benefits/details/income-replacement-disability-benefits/cupe-116-dbp/.

If you have any questions, please email benefitsinfo@hr.ubc.ca.