Memo: 2018 Income Replacement Plan (IRP) Rate Change for Faculty, Academic Executives and M&P Staff In Faculty Pension Plan (Dec. 13, 2017)

Date: Dec. 13, 2017
From: UBC Human Resources and the UBC Faculty Association
To: Faculty, Academic & Administrative Executives, and M&P Staff (in FPP) who are enrolled in the Income Replacement Plan (IRP)
Subject: 2018 Income Replacement Plan (IRP) Premium Rate Change for Faculty, Academic Executives and M&P Staff In Faculty Pension Plan

The long-term disability plan for faculty members is called the UBC Income Replacement Plan (IRP). This is a mandatory, employee-paid plan that provides a monthly income should you become unable to work due to illness or disability, once you have passed the qualifying period. The IRP is administered by Sun Life, with oversight from the UBC Faculty Association and UBC through a Governance Committee.

The premium rate for the plan is reassessed every January 1st based on an industry formula that takes into consideration a number of factors including the number of claims during the last five years, membership demographic data, and potential future claims. The IRP premium rate is proposed by the insurer (Sun Life) and negotiated by the plan’s benefits consultant (Pointbreak Consulting Group). The IRP Governance Committee and the Faculty Association’s Executive Committee reviews and approves the final rate that is recommended by the consultant, and works to ensure that the cost of the coverage remains competitive within the industry.

The IRP has continued to experience an increase claims and in the average duration of those claims over the years. As a result, our disability claims costs continue to rise and the IRP premium needs to be adjusted to reflect this change. As a result, the required rate adjustment is 15% for the upcoming year

The 2018 IRP premium rate will therefore change from 1.176% to 1.352% of earnings. This new premium rate will be reflected on your Jan. 15, 2018, pay cheque.

The IRP Governance Committee will continue to regularly review the disability plan to ensure that it meets the needs of Faculty, Academic Executive, and M&P Staff (in FPP) plan members, and that premium rates remain fair and financially competitive.

For Additional Information

For more information about the IRP, please visit:

If you have any questions, please email