Date: March 6, 2013
From: Michelle Berner, Director, Total Compensation, Human Resources
To: CUPE 116 Members Enrolled in BC Medical Services Plan
Subject: CUPE 116 MSP Premium Payment Arrangement Changes, Effective April 1, 2013
As a result of collective bargaining, there was an increase to the funding provided for health and welfare improvements that were originally made in 2001 and which are monitored twice a year. Effective April 1, 2013, the health and welfare funding will increase from 1.85% of payroll to 2.15%. Due to this increase in funding, and because the original benefit improvements remain financially viable at this time, it was determined with CUPE Local 116 that the Medical Service Plan (MSP) premium payment arrangement will be improved for CUPE 116 employees.
Effective April 1, 2013, CUPE 116 employees enrolled in the BC MSP Group Plan through UBC will have 100% of the MSP monthly premiums paid by UBC. This means that employees will no longer have 25% of the MSP premium deducted from their pay.
This change is outlined in the table below, and is inclusive of the increase to the BC MSP premium made by the provincial government on Jan. 1, 2013.
Effective April 1, 2013
|MSPMonthly Premium||25% Employee Paid||75% UBC Paid||100% UBC Paid|
|Couple (family of 2)||30.12||90.38||120.50|
|Family (family of 3 or more)||33.25||99.78||133.03|
Since premiums are taken one month in advance, the change will be reflected on your March 31, 2013, paycheque.
The annual premiums saved as a result of this change, based on current MSP rates, are:
- Single – Employee saves $199.44 per year
- Couple (family of 2) – Employee saves $361.44 per year
- Family (family of 3 or more) – Employee saves $399.00 per year
Any portion of MSP premiums paid by the employer is a taxable benefit and will be included in your taxable income (Box 40 of your T4 statement).
The funding position of this and past benefit improvements will continue to be monitored to ensure that there are enough funds to sustain the cost of all of the improvements.
If you would like additional information about your benefit plans, please visit our website at: http://www.hr.ubc.ca/benefits/employee-groups/cupe-116/.
If you have any questions, please contact Stephanie Mah at 604-822-6823 or email@example.com.