2016 DBP Premium Rate Change for CUPE 2950 (Dec. 1, 2015)

Memorandum
Date: December 1, 2015
From: UBC Human Resources and CUPE 2950
To: CUPE 2950 Employees who are Enrolled in the Disability Benefit Plan
Subject: 2016 DBP Premium Rate Change


The long term disability plan for eligible CUPE 2950 members is called the Disability Benefit Plan (DBP). This is a mandatory, employee-paid plan that provides a monthly income after a four month waiting period for those who meet the definition of total disability under the plan. This plan is administered by Sun Life, with oversight from your union (CUPE 2950) and UBC through a Governance Committee. Premiums for this plan are deducted from each of your pay cheques.

The premium rate is reconsidered every January 1st, and takes into consideration the number of claims during the most recent few 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 (Mercer). A governance committee that includes members of CUPE 2950 and the University review and approve the final rate that is recommended by the Consultant.

As a result of the review, your 2016 DBP premium rate will be 1.311% of earnings. This is a reduction from the 2015 rate of 1.542%. If you’re a monthly employee, this new premium rate will be reflected on your January 15, 2016 pay cheque. If you’re an hourly employee, the new premium rate will be reflected on your January 23, 2016 pay cheque.

This will be the second year of reduced DBP premium rates. Here’s the history of premium rates as a percentage of earnings:

  • 2010: 2.2%
  • 2011: 2.2%
  • 2012: 2.2%
  • 2013: 2.3%
  • 2014: 2.3%
  • 2015: 1.542%
  • 2016: 1.311%

The CUPE 2950 DBP Governance Committee will continue to regularly review the disability plan to ensure that it meets the needs of CUPE 2950 plan members, and that premium rates remains fair and financially competitive. 

For Additional Information

For more information about the CUPE 2950 DBP, please visit the following web page: http://www.hr.ubc.ca/benefits/irp-dbp/cupe-2950/.

If you have any questions, please contact Stephanie Mah at 604-822-6823 or stephanie.mah@ubc.ca.