Memo: Changes to Faculty Income Replacement Plan Effective January 1, 2014 (Dec. 4, 2013)

Date: Dec. 4, 2013
From: UBC Faculty Association and UBC Human Resources – Health, Wellbeing and Benefits
To: Faculty, M&P Staff (in FPP), and Academic and Administrative Executives Enrolled in the Faculty IRP
Subject: Income Replacement Plan (IRP) Premium Rate Effective January 1, 2014

Your Income Replacement Plan (IRP) is a mandatory, employee-paid plan that provides a monthly income for those who meet the definition of disability, and who have been unable to work for a period of six months (the elimination or qualifying period) as a result of the disability. This monthly income benefit, which is based on a percentage of your income, is paid for the duration of disability, up to age 65. The IRP is an insured benefit administered by Sun Life Financial.

The rate of 0.650% was guaranteed over a two-year period ending on December 31, 2013. Going forward in 2014, and each subsequent year, the premium rate is reconsidered every January 1st, based on claims experience, demographic data of plan members, and potential future claims experience of the plan. The rates can go up or down each year, depending on these factors.

The IRP premium rate proposed for January 1, 2014 by the Insurer (Sun Life) was reviewed by the UBC Faculty Association and UBC Human Resources, and was negotiated by the plan’s benefits consultants. As a result, your IRP premium will be 0.774% of your earnings for the 2014 calendar year. This represents an increase over the 2013 rate of 0.650%, but is still favorable by comparison to the 2011 rate of 0.90%.

The IRP premiums are income-based deductions; therefore, premiums are deducted each pay period.

On an annual basis, we will continue to review the disability plan to ensure that it meets the needs of our members and remains financially competitive.

For Additional Information

Detailed information about the IRP Plan can be located on the UBC Human Resources web site.

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

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