Memo: 2017 Income Replacement Plan (IRP) Rate Change for Faculty, Academic Executives and M&P Staff In Faculty Pension Plan (Dec. 1, 2016)

Date: Dec. 1, 2016
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: 2017 Income Replacement Plan (IRP) Rate Change for Faculty, Academic Executives and M&P Staff In Faculty Pension Plan

The long-term disability plan for eligible faculty and staff members is called the Income Replacement Plan (“IRP”). It is a mandatory, employee-paid plan that provides a monthly income, once you have passed the 26-week qualifying period, in the event that you are unable to work due to illness or disability. This plan is administered by Sun Life, with oversight from the UBC Faculty Association and UBC through a Governance Committee. Premiums for this plan are deducted from each of your pay cheques.

The premium rate is renewed 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 IRP premium rate is proposed by the Insurer (Sun Life) and reviewed 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.

The IRP has continued to experience an increase in the incidence of disability claims and an increase 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 for 2017. As a result of the competitive market review of the IRP we conducted earlier this year, we were successful in limiting the required rate adjustment to 5% with Sun Life. As of Jan. 1, 2017, your IRP premium rate will change from 1.123% to 1.176% of earnings. This new premium rate will be reflected on your Jan. 15, 2017, 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.

Additional Information and Questions

For more information about the IRP, please visit:

If you have any questions, please contact Stephanie Mah at 604-822-6823 or