Date: December 11, 2015
From: UBC Human Resources and the UBC Faculty Association
To: Faculty, Academic Executives, and M&P Staff (in FPP) who are enrolled in the Income Replacement Plan (IRP)
Subject: 2016 IRP Premium Rate Change
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 (Point Break Consulting Group). The IRP Governance Committee reviews and approves the final rate that is recommended by the Consultant.
Over the past several years, the IRP has experienced an increase in the incidence of disability claims and an increase in the average duration of those claims. As a direct result, our disability claims costs under the Sun Life program have also gone up. The IRP premium needs to be adjusted to reflect this change for 2016. Although you have enjoyed a relatively stable premium rate over the past few years, as of January 1, 2016, your IRP premium rate will change from 0.848% to 1.231% of earnings. This new premium rate will be reflected on your January 15, 2016 pay cheque.
As part of our due diligence in overseeing the plan, the IRP Governance Committee is engaging in a competitive market review to assess the IRP’s plan offerings to ensure that our plan remains market competitive and offers a valued program to the plan membership.
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:
Academic Executives: http://www.hr.ubc.ca/benefits/irp-dbp/academic-executive/
Management and Professional (enrolled in Faculty Pension Plan): http://www.hr.ubc.ca/benefits/irp-dbp/management-professional/high-earners/
If you have any questions, please contact Stephanie Mah at 604-822-6823 or firstname.lastname@example.org.