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Modernization of Public Sector Retiree Benefit Plans

Archived Backgrounder

Modernization of Public Sector Retiree Benefit Plans

Ministry of Government and Consumer Services

By transitioning to a new cost-sharing model for retiree benefits, the government is moving in line with the private sector and other public sector organizations.

The following chart provides a snapshot of how our changes compare to what other employers offer.

Government or organization

Highlights of Retiree Insured Health Plans

Ontario

Eligibility: Effective Jan. 1, 2017, employees must have a minimum of 20 years' pension credit and must retire to an immediate unreduced pension. This applies to new hires and employees who do not meet current eligibility requirements by the effective date. This is a change from the current eligibility requirement which is receipt of pension based on minimum 10 years pension credit.

Cost Sharing: Premium costs are shared 50:50 between the employer and retirees for eligible employees who have not started collecting their pension by that date, This is a change from 100 per cent employer paidpremium for people retiring on or after Jan. 1, 2017.

Impact: No impact on current retirees.

Proposed Federal changes

Eligibility: 6 years' service (increase from 2 years).

Cost Sharing: 50:50 (from 75:25)

Impact: Changes would impact current retirees

Other Provinces

Cost Sharing: Employees in Saskatchewan, Alberta, Manitoba, PEI, New Brunswick and British Columbia all pay 100 per cent of the premium cost if they elect to participate following retirement.

Examples of Broader Public Sector Retiree Insured Health Plans Terms

Hospital Sector

Eligibility: At retirement employees have 60 days to choose if they want to participate in the program

Cost Sharing: 100 per cent retiree paid (may vary)

School Boards

Eligibility: terms vary, optional access following retirement

Cost sharing: 100 per cent  retiree paid

Police Services

Eligibility: terms vary, optional accessonce coverage ends

Cost-sharing: 100 per cent  retiree paid

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