Date: January 14, 2020
To: Employees Enrolled in the Income Replacement Plan (IRP) for Faculty, Academic and Administrative Executive, and M&P Staff (in FPP)
From:Human Resources and the UBC Faculty Association
Subject: 2020 Income Replacement Plan Premium Rate Change
The long-term disability plan for Faculty Association members, Academic & Administrative Executives, and M&P staff enrolled in the Faculty Pension Plan (FPP) is called the UBC Income Replacement Plan (“IRP”). This is a mandatory, employee-paid plan that provides a monthly income should you become unable to work due to illness or disability, once you have passed the qualifying period. The IRP is administered by Sun Life, with oversight from the Faculty Association and UBC through a governance committee.
The premium rate for the plan is reassessed every January 1st based on an industry formula that takes into consideration a number of factors, including the number of claims during the last five years, membership demographic data, and potential future claims. The IRP premium rate proposed by the insurer (Sun Life) is reviewed by the plan’s benefits consultant (HUB International – formerly Pointbreak Consulting). Then, the IRP governance committee and the Faculty Association’s Executive Committee review and approve the final rate that is recommended by the consultant.
In 2020, the IRP premium rate will decrease from 1.487% to 1.190% of earnings. The new premium rate will be implemented on the first pay cheque after January 1st.
The IRP governance committee continues to regularly review the disability plan to ensure that it meets the needs of Faculty, Academic & Administrative Executives, and M&P staff (in FPP) plan members, and that premium rates remain fair and financially competitive.
For Additional Information
For more information about IRP, please visit: Faculty, Academic & Administrative Executives and M&P Staff (in FPP) Income Replacement Plan.
If you have any questions, please email firstname.lastname@example.org.