2016 DBP Premium Rate Change for Other Group (Dec. 1, 2015)

Date: December 1, 2015
From: UBC Human Resources and “Other” DBP Advisory Committee
To: Employees Enrolled in the Disability Benefit Plan (DBP) for the Group called “Other” (which includes IUOE Local 882, BCGEU Child Care Employees, and Non-Union Employees)
Subject: 2016 DBP Premium Rate Change

The long term disability plan for eligible members is called the 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. This plan is administered by Sun Life, with oversight from an Advisory 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). An Advisory Committee that includes representatives of your employment group and the University review and approve the final rate that is recommended by the Consultant.

As a result of the review, the 2016 DBP premium rate for your group (which is called “Other”) will be 0.608% of earnings. This is a reduction from the 2015 rate of 0.676%.

You are currently on a “premium holiday”. Under this premium holiday you have had DBP plan coverage, but have not had to pay premiums. The new premium rate of 0.608% of earnings will be reflected upon expiration of the premium holiday, which is anticipated to be at the end of November 2016.

The DBP rate for your group has remained relatively stable over the years, with decreases since 2013.  Here’s the history of premium rates as a percentage of earnings:

  • 2011: 0.842%
  • 2012: 0.867%
  • 2013: 0.867%
  • 2014: 0.676%
  • 2015: 0.676%
  • 2016: 0.608%

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

For Additional Information

For more information about the DBP plan for the group called “Other”, please visit the following web page: http://www.hr.ubc.ca/benefits/irp-dbp/other-dbp/.

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