Memo: 2017 Disability Benefit Plan (DBP) Premium Rate for CUPE 2950 (Dec. 1, 2016)

Memorandum
Date: Dec. 1, 2016
From: UBC Human Resources and CUPE 2950
To: CUPE 2950 Employees who are Enrolled in the Disability Benefit Plan (DBP)
Subject: 2017 Disability Benefit Plan (DBP) Premium Rate for CUPE 116


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 2017 DBP premium rate will be 1.337% of earnings.  This is a slight increase from the 2016 rate of 1.311%. If you’re a monthly employee, this new premium rate will be reflected on your January 15, 2017 pay cheque. If you’re an hourly employee, the new premium rate will be reflected on your January 23, 2017 pay cheque.

The rates have decreased over the years and are remaining relatively stable. 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%
  • 2017: 1.337%

The increase is due to more claims on the plan over the last year requiring a slightly higher premium. 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 remain fair and financially competitive.

For Additional Information

For more information about the CUPE 2950 DBP, please visit http://www.hr.ubc.ca/wellbeing-benefits/benefits/details/income-replacement-disability-benefits/cupe-2950-dbp/.

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