COMPARISON Canada Assessing Your Benefits

Transcription

1 watsonwyatt.com COMPARISON Canada Assessing Your Benefits Participant Report Prepared for McMaster University December 17, 2010

2 McMaster University Page 1. Introduction General Methodology Total Benefits Results Summary of Plan Provisions Retirement Plans... 4 Supplemental Employee Retirement Plans Retirement Allowance/ Severance Payment 13 Flexible Benefits/ Health Care Spending Accounts Medical Benefits Medical Benefits for Retirees Dental Benefits Dental Benefits for Retirees Group Life Insurance Life Insurance for Retirees Short-Term Disability Long-Term Disability Tuition Fee Assistance for Dependents Employee Assistance Program SUB Plans Top Up for Maternity/ Paternity Day Care Programs Appendix Valuation Methodology and Assumptions by Benefit...A-1 December 17, 2010 T:\Services\CUST\2010\University of Ottawa\Participants Report\Participants Report_B_McMaster.doc

3 McMaster University DISCLAIMER Towers Watson provides this report on an as is basis and warrants and guarantees that the report provided is fit for the purpose for which it is intended as at such date. Towers Watson does not provide a warranty or guarantee of any kind as to the accuracy or completeness of the data or information it contains or is based upon other than the guarantee that Towers Watson has accurately and completely input the relevant data that was submitted to or obtained by Towers Watson. You may use the report only within your organization and you may not modify, copy, sell or transfer it. You are solely responsible for your use of this report and the data and information contained herein. Subject to the warranties and guarantees provided in the engagement letter, Towers Watson will not be liable for any direct, indirect, incidental, special, consequential, punitive or other damages arising from your use or reliance upon, or your inability to use or rely upon, this report or the related third party data or information. December 17, 2010 T:\Services\CUST\2010\University of Ottawa\Participants Report\Participants Report_B_McMaster.doc

4 1. Introduction McMaster University This participant s report presents the results of a benchmark assessment comparing the design of McMaster University s total benefits program offered to faculty employees against the peer group of universities selected by University of Ottawa used to perform their benefits benchmark study. Study Participants The following universities were selected by University of Ottawa as the desired peer group for purposes of performing the benefits study. Universities Carleton University Queen s University University of Guelph University of Waterloo N/A N/A University of Western Ontario Faculty Associations N/A Queen's University Faculty Association University of Guelph Faculty Association University of Waterloo Faculty Association Windsor University Faculty Association McMaster University Faculty Association N/A Benefit plan information used to produce this benchmarking assessment were taken from our COMPARISON questionnaire as well as from information provided for a similar study we conducted in We then communicated with each university s human resources representative as well as representatives from each of the university s faculty association requesting them to validate the accuracy of the information gathered Note that throughout this report, the names of the peer group are not disclosed when presenting results so as to maintain confidentiality of each university s benefit plan provisions. Your university is identified as University B. Benefits Included in Study The study focused on measuring the following benefit plans from each university, applicable to newly hired employees: Retirement plans, such as registered pension plans and other savings plans, supplemental employee retirement plan and retirement allowance/severance payment, Other post-retirement benefit plans, such as medical, dental and life insurance plans provided after retirement, Group benefit plans, such as medical, dental, life insurance and disability plans, Other benefits, such as tuition fee assistance for dependents, day care programs, employee assistance program and Supplementary Unemployment Benefit (SUB) plans top up for maternity/paternity leave. December 17,

5 2. General Methodology McMaster University The results presented in this participant s report focuses on comparing how McMaster University s benefits plan design measures against the other universities benefits plan design. It is not intended to be an analysis of comparing actual benefit costs, since a university s benefits costs are affected not only by their benefits plan design, but also by other factors such as funding decisions, plan experiences and demographics. Neutralizing these factors allows for a more objective method of comparing benefit plans. The general methodology used to assess how McMaster University s benefits plan design ranks against the selected peer group is briefly described as follows: For each participant, we compute an annual dollar cost value for each benefit plan, based on each participant s respective benefit plan provisions and using the valuation methods and assumptions described in the Appendix of this report. The annual dollar cost values are calculated using University of Ottawa s demographic population. Note again that these dollar cost values reflect the expected cost of the benefit without regards to funding or plan experience. The annual dollar cost values are then allocated between what the employer contributes towards the cost of the benefit ( employer benefit value ) and what the employee contributes ( employee benefit value ) based on the cost-sharing arrangements of each university s benefit program. The sum of these two values is referred to as the total benefit value. Relative value indices are then derived by dividing the annual dollar cost value calculated for each university by a defined baseline. In this report, the baseline was defined as the average of the peer group s employer benefit value, excluding McMaster University s value (i.e. average value equals to a relative value of 100). Relative values are used as a measure to assess how much more valuable or less valuable a benefit is compared to other universities. December 17,

6 3. Total Benefits Results McMaster University Total Benefits Results The following table presents the comparison results with respect to overall employee benefit program. 175 Total Benefits - Baseline 150 Relative Values University A University E University H University B University D University G University F University C Average (Excluding University B) Total Employee Employer December 17,

7 Employer Type of Retirement Program University A Defined benefit plan Eligibility: Date of hire Retirement Plans - Table 1 Eligibility and Vesting Employee Contributions Employer Contributions to DC Plan Vesting: Immediate University B Defined benefit plan Eligibility: Date of hire University C Hybrid Plan Money Purchase Plan and Minimum Guarantee DB plan Vesting: 2 years DB Plan: Eligibility: Date of hire Vesting: Immediate DC Plan: Eligibility: Date of hire Vesting: Immediate University D Defined benefit plan Eligibility: Date of hire or on January 1st following the 35th birthday University E Defined contribution plan Vesting: Immediate Eligibility: Date of hire Vesting: Immediate Required: 4.8% of earnings up to YMPE plus 6.5% of earnings above YMPE (maximum of 35 years, contributory earnings capped at $142,000) Required: 5% of annual earnings up to YMPE plus 6.5% of annual earnings above YMPE DB Plan: None DC Plan: Required: 4.5% of annual earnings up to YMPE plus 6% of annual earnings above YMPE Voluntary Contributions permitted Required: 5.8% of earnings up to YMPE, plus 8.30% of earnings above YMPE up to 2 times YMPE, plus 9.65% of earnings above 2 times YMPE Required: 1.5% or 5.5% of earnings (69% of employees opted for the 1.5% contribution rate as at December 31, 2009) N/A N/A DB Plan: N/A DC Plan: Required: 6% of earnings up to YMPE plus 7% of earnings above YMPE N/A Required: 8.5% of earnings Definition of Earnings Base pay Base pay DB Plan: Base pay DC Plan: Base pay Base pay Base pay December 17,

8 Employer University F University G Type of Retirement Program Hybrid Plan Money Purchase Plan and Minimum Guarantee DB plan Hybrid Plan DC Plan and Minimum Guarantee DB plan Eligibility and Vesting Employee Contributions Employer Contributions to DC Plan DB Plan: Eligibility: Date of hire; voluntary prior to age 30, compulsory after age 30 Vesting: Immediate DC Plan: Eligibility: Date of hire; voluntary prior to age 30, compulsory after age 30 Vesting: Immediate DB Plan: Eligibility: Date of hire Vesting: Immediate DC Plan: Eligibility: Date of hire Vesting: Immediate University H Defined benefit plan Eligibility: From first day of work, maximum delay is age 30 or 2 years of service which ever comes first (date of hire valued) DB Plan: None DC Plan: Required: 4.37% of earnings up to YMPE plus 6% of earnings above YMPE Voluntary contributions permitted without matching DB Plan: None DC Plan: Required: 6% of annual earnings Additional voluntary contributions allowed subject to tax limitations Required: 4.25% of earnings up to YMPE plus 6.55% of earnings above YMPE (YMPE is set each year, current for 2010 is: $34,989, contributory earnings capped at $189,557) DB Plan: N/A DC Plan: Required: 4.62% of earnings up to YMPE plus 6.25% of earnings above YMPE DB Plan: N/A DC Plan: Required: 6% of annual earnings N/A Definition of Earnings DB Plan: Base pay DC Plan: Base pay DB Plan: Base pay DC Plan: Base pay Base pay Vesting: Immediate December 17,

9 Retirement Plans - Table 2 Employer Normal Retirement Benefit (DB only) Early Retirement Benefit (DB only) Normal Form of Benefit (DB only) Supplemental Bridge Benefit (DB only) Post-retirement indexing (DB only) University A 1.5% of BAE(3) up to Average YMPE(5) plus 2% of BAE(3) above Average YMPE(5), times credited service (maximum of 35 years) BAE(3) = Best 3 consecutive year Average Earnings Unreduced: Age 65 or Rule of 85 points Reduced: 3% per year before age 65 or Rule of 85 points Single Form: Payable for the member s lifetime, with 5 years of pension payments guaranteed Married/Joint Form: Joint and 60% survivor annuity equal to 100% of the pension payable None Automatic 100% of CPI in excess of 2%, maximum of 8% December 17,

10 Employer Normal Retirement Benefit (DB only) Early Retirement Benefit (DB only) Normal Form of Benefit (DB only) Supplemental Bridge Benefit (DB only) Post-retirement indexing (DB only) University B 1.4% of BAE(4) up to Average YMPE(4) plus 2% of BAE(4) above Average YMPE(4), times credited service BAE(4) = Best 4 year Average Earnings Unreduced: Age 65 or Rule of 80 points* Reduced: 6% per year before age 65 *The Rule of 80 stays in place until December 31, From January 1, 2012 to December 31, 2012, the Rule of 80 would be replaced by the Rule of 81. From January 1, 2013 to December 31, 2013, this would become the Rule of 82. From January 1, 2014 to December 31, 2014, this would become the Rule of 83. From January 1, 2015 to December 31, 2015, this would become the Rule of 84. From January 1, 2016 onwards, the Rule of 85 would be in place. For faculty who begin on July 1, 2006 or later, the Rule of 85 applies immediately. Single Form: Payable for the member s lifetime, with 7 years of pension payments guaranteed Married/Joint Form: Subsidized Joint and 50% Survivor annuity, guaranteed 7 years Monthly bridge of $19 times years of service up to June 30, 1996 (maximum 20 years) (Not valued) Automatic The lesser of the Percentage by which Average Annual Rate of Return (formula) exceeds 4.5% and Percentage annual Income in average CPI during 12 months period December 17,

11 Employer University C University D Normal Retirement Benefit (DB only) 1.4% of BAE(4) up to Average YMPE(4) plus 1.8% of BAE(4) above Average YMPE(4), times credited service BAE(4) = Best 4 year Average Earnings 1.4% of BAE(3) up to Average YMPE(5) plus 2% of BAE(3) above Average YMPE(5), times credited service BAE(3) = Best 3 years Average Earnings in the last 10 years Early Retirement Benefit (DB only) Unreduced: Age 65 Reduced: 2% per year between age 60 and 65 and 6% per year between age 55 and age 60 Unreduced: Age 62 Reduced: 6% per year before age 62 Normal Form of Benefit (DB only) Single Form: Payable for the member s lifetime, with 10 years of pension payments guaranteed Married/Joint Form: Actuarially equivalent to pension payable to members who do not have a spouse Single Form: Payable for the member s lifetime, with 10 years of pension payments guaranteed Married/Joint Form: Actuarially equivalent to pension payable to members who do not have a spouse Supplemental Bridge Benefit (DB only) University E N/A N/A N/A N/A N/A None None Post-retirement indexing (DB only) Automatic Depending on pension fund investment return averaged over 4-year period If average return exceeds 6%, the excess is used to improve pensions If average return is less than 6%, no increase Automatic 100% of year over year CPI, maximum of 5% (CPI above 5% hinges on plan's finances; investment goals intend full indexing) December 17,

12 Employer Normal Retirement Benefit (DB only) Early Retirement Benefit (DB only) Normal Form of Benefit (DB only) Supplemental Bridge Benefit (DB only) Post-retirement indexing (DB only) University F 1.29% of BAE(5) up to Average YMPE(5) plus 2% of BAE(5) above Average YMPE(5), times credited service BAE(5) = Best 5 year Average Earnings Unreduced: Age 65 Reduced: 3% per year before age 65 Single Form: Payable for the member s lifetime, with 5 years of pension payments guaranteed Married/Joint Form: Actuarially equivalent to pension payable to members who do not have a spouse Only for members who were 45 years of age at July 1, 2003 (Not offered to new hired employees not valued): $5, times credited service (maximum of 20 years) Automatic 4 years average of Fund Interest rate minus 6% University G 1.5% of BAE(4) up to Average YMPE(4) plus 2% of BAE(4) above Average YMPE(4), times credited service BAE(4) = Best 48 month Average Earnings Unreduced: Age 65 Reduced: Actuarial reduction factor Single Form: Payable for the member s lifetime, with 5 years of pension payments guaranteed Married/Joint Form: Actuarially equivalent to pension payable to members who do not have a spouse None Automatic If CPI increase is from 0% to 2%: the benefit increases by 100% of CPI If CPI increase is greater than 2% and less than or equal to 4%: the benefit increases by 2% If CPI increase is greater than 4% and less than or equal to 8%: the benefit increases by 50% of the CPI increase If CPI increase is greater than 8%: the benefit increases by 4% December 17,

13 Employer Normal Retirement Benefit (DB only) Early Retirement Benefit (DB only) Normal Form of Benefit (DB only) Supplemental Bridge Benefit (DB only) Post-retirement indexing (DB only) University H 1.3% of BAE(5) up to Average YMPE(5) plus 2% of BAE(5) above Average YMPE(5), times credited service Minimum benefits: 1.5% of FAE(5), times credited service BAE(5) = Best 5 years Final Average Earnings Unreduced: Age 60 or Rule of 90 points Reduced: 6% per year before age 60 or Rule of 90 points Single Form: Payable for the member s lifetime, with 5 years of pension payments guaranteed Married/Joint Form: Subsidized Joint and 60% Survivor annuity, guaranteed 5 years None Automatic If CPI is less than 2%: 100% of CPI If CPI is between 2% and 3%: 2% increase If CPI is greater than 3%: 100% of CPI minus 1% up to a maximum of 8% Average YMPE(5): Currently set at $34,989 for 2010 December 17,

14 Supplemental Employee Retirement Plans Employer Eligibility Benefit Description Other Provisions University A No coverage N/A N/A University B No coverage N/A N/A University C University D University E Optional to all employees affected by ITA limits (assume all employees participate - valued) All employees affected by the ITA limits All employees affected by the ITA limits Hybrid plan: Fully mirror benefits provided under the registered plan (except for the ITA limits) Supplemental Pension Plan allows increased employee contributions, with "excess" university contributions (in excess of CRA maximum) being credited to non-registered supplemental pension account Different benefits provided: ITA limits in RPP subject to indexing to a maximum cap of $3,200 per year of credited service Cap in supplemental plan is indexed as follows up to a maximum cap of $3,200, $2,725 in 2008, $2,800 in 2009 and indexed up to increases in AIW thereafter Intent is to adjust ITA cap and supplemental plan cap periodically Defined contribution plan only: Fully mirror benefits provided under the registered plan (except for the ITA limits) Excess employer and employee contribution above RPP limits University F No coverage N/A N/A University G No coverage N/A N/A Funding: Not pre-funded or secured (i.e., pay-as-you-go) Employee contributions: Employee contributions to pension plan increased, reduced employer contribution credited to SERP Supplemental accounts are credited with interest at the rate which is earned by the Pooled Investment Fund, and paid (taxable) to employees at retirement Funding: Not pre-funded or secured (i.e., pay-as-you-go) Employee contributions: None Funding: Not pre-funded or secured (i.e., pay-as-you-go) Employee contributions: None December 17,

15 Employer Eligibility Benefit Description Other Provisions University H All employees affected by the ITA limits Different benefits provided: Past service (pre 1/1/1999): $1,722 indexed at CPI/AIW since 1997 Future service (post 1/1/1999): 120% of professor salary cap is equal to the SERP's pensionable earning's cap (120% * $157,964 = $189,557 which is the maximum pensionable earnings under the SERP) Funding: Future service accrual subject to availability of designated surplus under the registered plan. At present, there is no accrual of future service credits beyond December 31, 2007 Employee contributions: None December 17,

16 Retirement Allowance /Severance Payment Employer Eligibility Formula of the Benefit Definition of Earnings Maximum Amount Form of Payment University A University B University C University D Age with 10 years of service in current Collective Agreement as a Letter of Understanding Collective Agreement expires June 30, 2011 No formal policy on payment of severance University may decide to offer severance to encourage early retirement on an individual basis only, such arrangements to be negotiated between the individual and the University No longer offered after Voluntary arrangements Association generally not involved in process 12 months of base salary Base salary 12 months of salary Lump sum N/A N/A N/A N/A N/A N/A N/A N/A Mutually agreeable arrangements needing approval with cost funded by department where the member works Base salary N/A N/A December 17,

17 Employer Eligibility Formula of the Benefit Definition of Earnings Maximum Amount Form of Payment University E University F University G Full-time Probationary and Tenured Members with 10 years of full-time service who are eligible to elect phased retirement (at any time within 10 years immediately preceding normal retirement date) Reduced workload range of 75% to 25% per year with a range of reduced total workload of 150% -200% for the 3 years No coverage for faculty members Voluntary contract termination (VCT) Member holding a regular appointment and tenure may apply A minimum of 50% of the Member s base salary immediately before the commencement of the 3 year Phased Retirement period with payout options Annual base salary in effect in the month prior to the commencement of the phased retirement period N/A N/A N/A N/A Severance payment negotiated on a case-by case basis Minimum amount payable is 6 months of earnings, if VCT is initiated by member (which is being valued for purposes of this study), or 12 months of earnings if VCT is initiated by the University Many factors are considered when deciding on a final sum. However, there is no set formula for payment. Base salary of member s final year of employment N/A No maximum payment Cash payment or into RRSP As a retiring allowance paid at the end of the phased retirement period and sheltered to the ITA limit; or As a retiring allowance paid at the end of the phased retirement period and sheltered to the ITA limit with the balance paid in three equal installments at July 1 of each year of the phased retirement period; or Three equal installments paid at July 1 of each year of the phased retirement period Lump sum Member & Administration must both agree to the voluntary contract separation Member is considered terminated faculty and loses all retiree privileges December 17,

18 Employer Eligibility Formula of the Benefit Definition of Earnings Maximum Amount Form of Payment University H When the member retires prior to the normal retirement date with age 60 or age plus credited service equal 90 $800 x number of years of full-time service x number of years until normal retirement (maximum of 5 years) Base pay None Lump sum Option of payment also available in combination with a phased retirement program December 17,

19 Employer Type of Plan Eligibility Benefit Plans Having Flexible Elements Flexible Benefits/ Health Care Spending Accounts H.S.A. or Flex Credits University A No coverage N/A N/A N/A N/A University B No coverage N/A N/A N/A N/A University C No coverage N/A N/A N/A N/A University D No coverage N/A N/A N/A N/A University E Flexible benefits and Health care spending account Date of hire HSA: Medical and Dental expenses not covered Co-Pay amounts Medical and Dental expenses with limits HSA: Single/ Family: $225/ $675 per year Flexible Benefits Program: $400 per year University F No coverage N/A N/A N/A N/A University G No coverage N/A N/A N/A N/A University H Stand-alone Health Spending Account Flexible Benefits Program: Add additional benefits onto a core group of benefits (core plus options) Date of hire LTD Health Dental Stand-alone H.S.A.: $262 per year (indexed annually by CPI increase) Flexible Benefits Program: Flexible benefit plan does not involve the use of credits Use of Flexible Credits Flexible Benefits Program: Allocate to Health care spending account Account or Professional Expense Reimbursement (PER) (Increments of $100) Default option: $200 to the HCSA (valued) and $200 to the PER if no planned allocation is made by a member N/A December 17,

20 Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum University A Date of hire No deductible Hospital (In Canada) Covered at 100% Medical - Table 1 Prescription Drugs Vision Care Paramedical Coverage Covered at 100% Covered at 100% Covered at 100% May opt-out at employee s discretion Out-of-pocket maximum: $450 Applied to Prescription Drugs No overall maximum Semi-private room rate Drugs requiring a prescription Drug Card used: On a direct payment basis (adjudicated at point-ofsale) No per script deductible Maximum dispensing fee: $6.50 per prescription, no maximum when the outof-pocket is reached One eye exam every 24 months Glasses and contact lenses up to $350 every 24 months Per visit maximum of $20 and annual maximum of $300 for each of the following services: Chiropractors Podiatrists Psychologists (no maximum per visit) Acupuncturists (no maximum per visit) Naturopaths Osteopaths Speech therapists (no maximum per visit) Annual maximum described below for the following services: Physiotherapists: Unlimited Massage therapists: $450 and $30 per visit Mandatory generic substitution December 17,

21 Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum University B Date of hire No deductible Hospital (In Canada) Covered at 100% Prescription Drugs Vision Care Paramedical Coverage Covered at 100% Covered at 100% Covered at 100% Cannot opt out No out-of-pocket maximum No overall maximum Semi-private room rate, maximum of $110 per day (costs exceeding an out-of-pocket of $300 per person per benefit year reimbursed) $10 per day to put towards private room coverage Drugs requiring a prescription Drug Card used: On a direct payment basis (adjudicated at point-ofsale) No per script deductible Maximum dispensing fee: $6.50 No mandatory generic substitution Eye exams up to $100 every 24 months (for insured members only) Glasses, contact lenses and laser eye surgery, up to $250 every 24 months Annual maximum of $300 for each of the following services: Chiropractors Physiotherapists Podiatrists Psychologists Massage therapists Naturopaths Osteopaths Christian Science Practitioners Annual maximum of $200 for: Speech therapists December 17,

22 Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum University C Date of hire May opt-out at employee s discretion Deductible: Single: $25 Couple: $25 Family: $25 Applied to Prescription Drugs, Paramedical services and Medical Services & Supplies No out-of-pocket maximum No overall maximum Hospital (In Canada) Covered at 100% Semi-private room rate Prescription Drugs Vision Care Paramedical Coverage Covered at 100% Drugs requiring a prescription Drug Card used: None No per script deductible Maximum dispensing fee: Unlimited No mandatory generic substitution Covered at 100% One eye exam up to $65 every 24 months Glasses and contact lenses up to $250 every 24 months Visual Training & remedial therapy up to a lifetime maximum of $150 (Not valued) Physiotherapists and Speech therapists: Covered at 100% Other specialists: Covered at 50% Annual maximum of $300 for each of the following services: Chiropractors Podiatrists Naturopaths Osteopaths Chiropodists Annual maximum described below for the following service: Speech therapists: $1,000 Physiotherapists: $55 for the first visit, $35 for subsequent visits December 17,

23 Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum University D Date of hire Cannot opt out (only parttime employees may opt-out of plan) No deductible Out-of-pocket maximum: Single: $121 Family: $242 Applied to Prescription drugs, Paramedical, and medical services and supplies No overall maximum Hospital (In Canada) Covered at 80% for the first 5 days, 100% thereafter Semi-private room rate Prescription Drugs Vision Care Paramedical Coverage Covered at 80% Drugs requiring a prescription Drug Card used: On a direct payment basis (adjudicated at point-ofsale) No per script deductible Maximum dispensing fee: $7 Mandatory generic substitution (unless specified otherwise by physician) No coverage Covered at 80% Annual maximum of $585 for each of the following services: Chiropractors ($12 per visit for the first 15 visits) Physiotherapists Podiatrists Psychologists Massage therapists Naturopaths Osteopaths Speech therapists Nutritionists/Dieticians December 17,

24 Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum University E Date of hire No deductible Hospital (In Canada) Covered at 85% Prescription Drugs Vision Care Paramedical Coverage Covered at 85% Covered at 100% Covered at 100% May opt-out if equivalent coverage through spouse s plan Out-of-pocket maximum: Single: $450 Family: $900 Applied to Health & Dental combined No overall maximum Semi-private or Private room rate Drugs requiring a prescription Drug Card used: On a direct payment basis (adjudicated at point-ofsale) No per script deductible Maximum dispensing fee: $6.11 Mandatory generic substitution Eye exam up to $25 per visit Glasses and contact lenses up to $150 every 12 months or $300 every 24 months Per visit maximum of $15 for each of the following services: Chiropractors Physiotherapists Massage therapists Acupuncturists Naturopaths Osteopaths Speech therapists Annual maximum described below for the following service: Podiatrists: $200 for surgery and $15 per visit Psychologists: $15/half hour visit December 17,

25 Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum University F Date of hire May opt-out if equivalent coverage through spouse s plan Deductible: Single: $25 Couple: $50 Family: $50 Applied to Prescription Drugs, Paramedical services and Medical Services & Supplies No out-of-pocket maximum No overall maximum Hospital (In Canada) Covered at 100% Semi-private room rate Prescription Drugs Vision Care Paramedical Coverage Covered at 80% Drugs requiring a prescription Drug Card used: On a direct payment basis (adjudicated at point-ofsale) No per script deductible Maximum dispensing fee: $8 No mandatory generic substitution Covered at 80% Glasses, contact lenses and laser eye surgery up to $400 every 24 months Covered at 80% Annual maximum of $200 for each of the following services: Chiropractors Massage therapists Speech therapists Unlimited annual maximum for each of the following services: Physiotherapists Podiatrists Psychologists Naturopaths Osteopaths Christian Science Practitioners December 17,

26 Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum University G Date of hire May opt-out if equivalent coverage through spouse s plan Deductible: Single: $10 Couple: $20 Family: $20 Applied to Prescription Drugs, Paramedical services, Vision Care and Medical Services & Supplies No out-of-pocket maximum No overall maximum Hospital (In Canada) Covered at 100% Semi-private or private room rate, lifetime maximum of $10 per day for 120 days Prescription Drugs Vision Care Paramedical Coverage Covered at 100% Drugs requiring a prescription Drug Card used: On a direct payment basis (adjudicated at point-ofsale) No per script deductible Maximum dispensing fee: Unlimited No mandatory generic substitution Covered at 100% Eye exam up to $75 every 5 years Glasses and contact lenses up to $400 every 24 months Covered at 100% Annual maximum described below for the following services: Chiropractors: $450 Physiotherapists: $800 Podiatrists: $500 Massage therapists: $600 Speech therapists: $800 Chiropodists: $500 Psychologists: Covered at 50% up to 15 visits per year December 17,

27 Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum University H Date of hire No deductible Hospital (In Canada) Covered at 100% Prescription Drugs Vision Care Paramedical Coverage Covered at 100% No coverage Covered at 100% Cannot opt out unless covered under another plan (then provided with $750 in HSSA) No out-of-pocket maximum No overall maximum Private or semiprivate room rate (Optional coverage paid by employee - valued) Drugs requiring a prescription Drug Card used: On a direct payment basis (adjudicated at point-ofsale) No per script deductible Annual maximum of $300 for each of the following services: Chiropractors Physiotherapists Podiatrists Massage therapists Naturopaths Osteopaths Speech therapists Maximum dispensing fee: $6.11 for a 30-day supply in Ontario, $3 per prescription in Quebec Annual maximum described below for the following service: Psychologists: $1,000 and $50 per visit No mandatory generic substitution December 17,

28 Medical - Table 2 Employer Out-of-Country Coverage Medical Services and Supplies Employee Contributions University A Covered at 100% Covered at 100% None Emergency and referrals covered Lifetime maximum of $1,000,000 Unlimited number of days covered per trip Travel assistance service provided University B Emergency: Covered at 100% Referrals: Covered at 80% Emergency and referrals Lifetime maximum of $1,000, days maximum covered per trip Travel assistance service provided Private duty nursing: $25,000 per year Hearing aids: $300 every 5 years Orthopaedic shoes and/or orthotics: Shoes: 1 pair per year Medical services Ambulance services Durable medical equipment Accidental injuries to teeth Glucose monitor: $150 every 5 years Covered at 100% except mentioned otherwise Private duty nursing: 40% of first $25,000 where expenses exceed $25,000, we will pay 80% of next $25,000 (maximum of $20,000) each year after claim has been paid 1/2 of amount reinstated; After 2 benefit years with no claims, entitlement is returned to full coverage Hearing aids: Covered at 75% up to $500 every 3 years, 2nd aid under same, 100% as accident Orthopaedic shoes and/or orthotics: Covered at 80%, maximum of $400 every 2 years Medical services Ambulance services Durable medical equipment: General medical devices: After deductible of $50/person/benefit year is paid, Plan covers 75% of the next $400 of eligible expenses and 100% of the remainder of expenses per person in a benefit year for each category of medical supplies (home care devices, mobility devices, braces or trusses, prosthetics) Convalescent care: $20 per day up to 120 days Accidental injuries to teeth None December 17,

29 Employer Out-of-Country Coverage Medical Services and Supplies Employee Contributions University C Covered at 100% University D Covered at 100% Emergency only Unlimited lifetime maximum No maximum number of days covered per trip (as long as individual retains provincial healthcare coverage) Travel assistance service provided Covered at 100% Private duty nursing: Covered at 80% up to $10,000 per year and $25,000 per lifetime Hearing aids: $500 every 4 consecutive years Orthopaedic shoes and/or orthotics: 1 pair per year Medical services Ambulance services Durable medical equipment: Maximum for each prosthesis is $10,000 Convalescent care: $25 per day Accidental injuries to teeth Covered at 100% None, except the Hospital coverage which is 100% employee paid None Emergency only Lifetime maximum of $1,000,000 Unlimited number of days covered per trip Travel assistance service provided Private duty nursing: Covered at 80% on the first 10 days in each calendar year, 100% thereafter, maximum of $17,702 Hearing aids: $585 per ear every 5 years Orthopaedic shoes and/or orthotics: Shoes: 3 pairs every 2 years, Orthotics: $585 per year if recommended by a Podiatrist or Doctor Medical services Ambulance services Durable medical equipment Accidental injuries to teeth Glucose monitor December 17,

30 Employer Out-of-Country Coverage Medical Services and Supplies Employee Contributions University E Covered at 85% Covered at 85%, except otherwise indicated None University F Covered at 100% Emergency only Maximum of $200,000 per person per trip Unlimited number of days covered per trip Travel assistance service provided Private duty nursing Hearing aids: Unlimited Orthopaedic shoes and/or orthotics: Covered at 100%: Shoes: 1 pair per year with a deductible of $75; Orthotics: 1 pair up to $400 per year Ambulance services Durable medical equipment Accidental injuries to teeth Glucose monitor: Covered at 100% up to $200 per year Covered at 80% 32% of cost University G Covered at 100% Emergency only Lifetime maximum of $1,000, days maximum covered per trip (no time limit for teaching staff if travelling while on sabbatical or business for university) Travel assistance service provided Private duty nursing: Unlimited Hearing aids: Unlimited Orthopaedic shoes and/or orthotics: 1 pair per year Medical services Ambulance services Durable medical equipment Convalescent care Accidental injuries to teeth Covered at 100% None Emergency and referrals Annual maximum of $1,000,000 for emergency and $50,000 for referrals 180 days maximum covered per trip Travel assistance service provided Private duty nursing: $10,000 per year Hearing aids: $2,000 every 5 years, Hearing tests up to a maximum of $75 every 5 years Orthopaedic shoes and/or orthotics: Foot orthotics: Unlimited Ambulance services: To the nearest hospital Durable medical equipment Accidental injuries to teeth December 17,

31 Employer Out-of-Country Coverage Medical Services and Supplies Employee Contributions University H Covered at 100% Emergency only Lifetime maximum of $500, days maximum covered per trip Travel assistance service provided Covered at 100% Private duty nursing: $25,000 lifetime Orthopaedic shoes and/or orthotics: Shoes $250 per year, Orthotics: $400 every 3 years Medical services Ambulance services Durable medical equipment Accidental injuries to teeth Glucose monitor None, except the Hospital room coverage which is optional and paid by employee December 17,

32 Medical Benefits for Retirees Employer University A University B University C University D Medical Benefits Continued for Retirees Offered to all retirees Offered to all retirees Offered to all retirees Offered to all retirees Eligibility Requirements Must have 10 years of pensionable service with the university (if hired after July 2007) Must draw pension benefit immediately upon retirement (no access to benefits if take Commuted Value) Must be enrolled in plan prior to retirement 10 consecutive years of service prior to retirement No specific criteria (other than retirement), Must have participated in the benefit plan immediately prior retirement 10 years of continuous service and immediately begin receiving a pension Main Differences in Benefit Provisions Retiree Contributions Surviving Dependent Coverage Hospital: Semi-private room rate limited to 180 days per injury or illness Out-of-Country: Lifetime maximum of $10,000 Other: Same as actives 80% reimbursement after age 65 No vision care Benefits are the same as active employees, except: Out-of-Country: 60 days maximum covered per trip, lifetime maximum of $80,000, $40,000 of which can used towards health expenses incurred outside of province, if retiree resides outside of Ontario, but within Canada 30% of cost Surviving dependents covered, lifetime for spouse, until completion of school (up to age 25) or until age 21 for children Same cost share as retiree None 30% of the Medical's cost plus 100% of the Hospital's cost None (Premiums cost-shared with retirees who were part-time immediately before retirement) Surviving dependents covered, lifetime for spouse, until age 25 for children Paid by the employer Surviving dependents covered, lifetime for spouse 60% paid by the employer Surviving dependents covered, lifetime for qualified dependents Paid by the employer Premiums cost-shared with retirees who were part-time immediately before retirement December 17,

33 Employer University E University F Medical Benefits Continued for Retirees Offered to all retirees Offered to all retirees Eligibility Requirements Main Differences in Benefit Provisions Retiree Contributions Surviving Dependent Coverage 10 years of service Out-of-Country: 60 days maximum covered per trip None Surviving dependents covered, lifetime for qualified dependents Paid by the employer No specific criteria (other than retirement) None Retiree: Age 55 with less than 4 years of service: 100% of cost Age 55 with 4 to 7 years of service: 32% of cost Age 55 with 8 or more years of service: None Surviving dependents covered, lifetime for qualified dependents Age 55 with less than 4 years of service: 100% paid by the surviving dependent, Age 55 with 4 to 7 years of service: 32% paid by the surviving dependent, Age 55 with 8 or more years of service: 100% paid by the employer December 17,

34 Employer Medical Benefits Continued for Retirees Eligibility Requirements Main Differences in Benefit Provisions Retiree Contributions Surviving Dependent Coverage University G Offered to all retirees No specific criteria (other than retirement) Hospital: Covered at 100% for semi-private room rate, Private room is limited to $5,000 per year Prescription Drugs: Covered at 100% with a deductible per prescription of $1 Paramedical: Covered at 100%, annual maximum of $300 for each of the following services: Chiropractors, Osteopaths, Podiatrists, Massage therapists limited to $7 per visit up to a maximum of 12 visits per year; Psychologists: $35 for the first visit and $20 per hour for each of the subsequent visit up to a maximum of $200 per year; Physiotherapists, Speech Therapists: annual maximum of $200 Medical services: Covered at 100%, Accidental dental benefits, Ambulance transportation to the nearest hospital limited to $100 per trip, Prosthetic appliances and durable equipment, Private Duty Nursing benefits up to $10,000 per year 100% of cost A Retiree Health Care Premium Reduction Fund has been established with a core amount of money Each year, depending on the investment yield on the core fund, the eligible retirees in the plan get a premium reduction on the monthly amount they pay out of pocket for coverage (This sum fluctuates according to the investments and in some years there is no money) Surviving dependents covered, lifetime for spouse, until age 25 if in school full time for children Paid by the surviving dependent Out-of-Country: Covered at 100% within the first 180 days per trip, maximum of $1,000,000 per year for emergencies and $50,000 for referrals services December 17,

35 Employer Medical Benefits Continued for Retirees Eligibility Requirements Main Differences in Benefit Provisions Retiree Contributions Surviving Dependent Coverage University H Offered to all retirees From age 55 to age 65, members have the option to continue to participate in the same program as active members, if they assume the cost of premiums University provides a Health Spending Account to retirees equals to an annual amount of $1,200 as at 2010 and $1,250 as at 2011 Before age 65: Same as active benefits After age 65: Manulife Follow Me program is the most popular (Enhanced option valued and described below) 100% of cost, but HSA may be used to pay for this None At age 65, members have the option to participate in hospital room coverage with the regular carrier, and can obtain EHC coverage through the program of the Municipal Retirees Organization of Ontario (MROO), the Manulife Follow Me program, or the Ontario Retiree Teachers Insurance Plan (RTIP) program if they assume the cost of premiums (they can use the HSSA to cover the cost) Drugs: 80%, up to $800 per year, mandatory generic substitution, no maximum dispensing fee Vision: Eye exams up to $50 every 24 months, Glasses, contact lenses and laser eye surgery, up to $200 every 24 months Paramedical: Acupuncturists, Chiropractors, Osteopaths, Podiatrists, Naturopaths, Chiropodists, Registered Massage Therapists, Physiotherapists: $600 combined maximum per year; Psychologists: $80 first visit, $65 subsequent visits, 10 visit per year; Speech Therapists: $65 first visit, $45 subsequent visits, 10 visit maximum per year Medical Services & Supplies: Private duty nursing, Prosthetic Appliances & Durable medical equipment: $750 for year 1, $1,250 for year 2, then $2,500 for each, Accidental dental, Ambulance, Hearing aids: $300 every 5 years, Orthotics: $225 per year Hospital: Semi-private room up to $175 per day No dental benefits $200,000 lifetime maximum December 17,

36 Dental Employer Eligibility Annual Deductibles University A University B Date of hire May opt-out at employee s discretion Date of hire Cannot opt out Co-pay Amounts No deductible Diagnostic: 100% Minor restorative: 100% Endodontic: 100% Periodontic: 100% Dentures: 67% Major restorative: 67% Adult orthodontic: 67% Child orthodontic: 67% No deductible Diagnostic: 100% Minor restorative: 85% Endodontic: 85% Periodontic: 85% Dentures: 70% Major restorative: 70% Adult orthodontic: 50% Child orthodontic: 50% Annual Dental Maximum Fee Schedule $2,500 Previous year provincial dental fee guide $2,500 for Denture and Major restorative services Specialist fee guide: Expenses are limited to the general practitioner s dental fee guide Recall exam: One every 9 months Current year provincial dental fee guide Specialist fee guide: But expenses are limited to a % (e.g., 120%) of the general practitioner s dental fee guide Recall exam: One every 9 months (6 months for children under age 15) Lifetime Ortho Maximum $2,500 20% of cost $2,500 None Employee Contribution December 17,

37 Employer Eligibility Annual Deductibles University C University D University E Date of hire May opt-out if equivalent coverage through spouse s plan Date of hire Cannot opt out (only parttime employees may opt-out of plan) Date of hire May opt-out if equivalent coverage through spouse s plan Co-pay Amounts No deductible Diagnostic: 100% Minor restorative: 100% Endodontic: 100% Periodontic: 100% Dentures: 75% Major restorative: 75% Adult orthodontic: 50% Child orthodontic: 50% No deductible Diagnostic: 80% Minor restorative: 80% Endodontic: 80% Periodontic: 80% Dentures: 50% Major restorative: 50% Adult orthodontic: 50% Child orthodontic: 50% No deductible Out-of-pocket maximum: Single: $450 Family: $900 Applied to Health & Dental combined Diagnostic: 85% Minor restorative: 85% Endodontic: 85% Periodontic: 85% Dentures: 80% Major restorative: 80% Annual Dental Maximum Fee Schedule $3,000 Prior year provincial dental fee guide $1,927 for Basic services and $2,904 for Major services Unlimited Specialist fee guide: Expenses are limited to the general practitioner s dental fee guide Recall exam: One every 6 months Prior 2 years provincial dental fee guide Specialist fee guide: Expenses are limited to the general practitioner s dental fee guide Recall exam: One every 9 months Current year provincial dental fee guide Specialist fee guide: But expenses are limited to a % (e.g., 120%) of the general practitioner s dental fee guide Recall exam: One every 9 months Lifetime Ortho Maximum $2,000 None $2,904 None N/A Employee Contribution None December 17,

38 Employer Eligibility Annual Deductibles Co-pay Amounts Annual Dental Maximum Fee Schedule Lifetime Ortho Maximum Employee Contribution University F Date of hire May opt-out if equivalent coverage through spouse s plan No deductible Diagnostic: 100% Minor restorative: 100% Endodontic: 100% Periodontic: 100% Major restorative: 80% Adult orthodontic: 50% Child orthodontic: 50% $1,000 for major restorative Previous year provincial dental fee guide Specialist fee guide: But expenses are limited to a % (e.g., 120%) of the general practitioner s dental fee guide $2,500 23% of cost Recall exam: One every 6 months University G Date of hire Cannot opt out No deductible Diagnostic: 80% Minor restorative: 80% Endodontic: 80% Periodontic: 80% Dentures: 80% Major restorative: 80% Adult orthodontic: 50% Child orthodontic: 50% Unlimited Current year provincial dental fee guide Specialist fee guide: Expenses are limited to the general practitioner s dental fee guide Recall exam: One every 9 months $3,000 None University H Date of hire Can opt out if covered under another plan (then provided with $240 in HSSA) No deductible Diagnostic: 80% Minor restorative: 80% Endodontic: 80% Periodontic: 80% Optional coverage (valued): Dentures: 50% Major restorative: 50% Adult orthodontic: 50% Child orthodontic: 50% $1,500 for Denture and Major restorative services Previous year provincial dental fee guide Specialist fee guide: Expenses are limited to the general practitioner s dental fee guide Recall exam: One every 6 months $2,500 None, except for optional coverage which is paid by employee December 17,

39 Employer Dental Benefits Continued for Retirees Eligibility Requirements University A Offered to all retirees Must have 10 years of pensionable service with the university (if hired after July 2007) Must draw pension benefit immediately upon retirement (no access to benefits if take Commuted Value) Must be enrolled in plan prior to retirement University B Offered to all retirees 10 years of consecutive service immediately prior to retirement Dental Benefits for Retirees Main Differences In Benefit Provisions Retiree Contributions Surviving Dependent Coverage No orthodontics 50% of cost Surviving dependents covered, lifetime for spouse, until completion of school (up to age 25) or until age 21 for children Same cost share as retiree Do not provide coverage for implants University C No coverage N/A N/A N/A N/A University D No coverage N/A N/A N/A N/A None Surviving dependents covered, lifetime for spouse, until age 25 for children Paid by the employer University E Offered to all retirees 10 years of service None None Surviving dependents covered, lifetime for qualified dependents Paid by the employer December 17,

40 Employer Dental Benefits Continued for Retirees Eligibility Requirements University F Offered to all retirees No specific criteria (other than retirement) University G Offered to all retirees No specific criteria (other than retirement) Main Differences In Benefit Provisions None Major services: Covered at 50% Orthodontics: Lifetime maximum of $1,500 Recall exam: Twice every 12 months Retiree Contributions Age 55 with less than 4 years of service: 100% of cost Age 55 with 4 to 7 years of service: 23% of cost Age 55 with 8 or more years of service: None Surviving Dependent Coverage Surviving dependents covered, lifetime for qualified dependents Age 55 with less than 4 years of service: 100% paid by the surviving dependent, Age 55 with 4 to 7 years of service: 23% paid by the surviving dependent, Age 55 with 8 or more years of service: 100% paid by the employer 50% of cost Surviving dependents covered, lifetime for spouse, until age 25 if in school full time for children 50% paid by the employer December 17,

41 Employer Dental Benefits Continued for Retirees Eligibility Requirements Main Differences In Benefit Provisions Retiree Contributions Surviving Dependent Coverage University H Offered to retirees under age 65 only From age 55 to age 65, members have the option to continue to participate in the same program as active members, if they assume the cost of premiums At age 65, members have the option to participate in hospital room coverage with the regular carrier, and can obtain Dental coverage through the program of the Municipal Retirees Organization of Ontario (MROO), the Manulife Follow Me program, or the Ontario Retiree Teachers Insurant Plan (RTIP) program if they assume the cost of premiums (they can use the HSSA to cover the cost) Before age 65: Same as active benefits After age 65: Manulife Follow Me program is the most popular (No dental benefits offered in the Enhanced option) 100% of cost None December 17,

42 Group Life Insurance Employer Eligibility Basic Employee Life Coverage Basic Dependent Life Coverage University A Date of hire Choice between 200% or 300% of earnings, maximum of $1,300,000 Most popular option is 300% of earnings Basic Employee AD&D Coverage Employee Contribution No coverage No coverage 33% of cost Definition of earnings: Base pay University B Date of hire 175% of earnings, maximum of $175,000 Definition of earnings: Base pay University C Date of hire 100%, 200% or 300% of earnings, maximum of $200,000 No coverage No coverage None No coverage No coverage 45% of cost Most popular option is to ensure for the maximum of $200,000 (200% of earnings valued) Definition of earnings: Base pay University D Date of hire Basic: 100% of earnings Optional Basic: Up to 300% of earnings (Optional Basic: 300% of earnings valued) Definition of earnings: Base pay No coverage No coverage Basic: None Optional: 33% of cost for coverage above 100% of earnings December 17,

43 Employer Eligibility Basic Employee Life Coverage Basic Dependent Life Coverage University E Date of hire 200% of earnings, minimum of $50,000 Definition of earnings: Base pay University F Date of hire 200% of earnings, maximum of $1,000,000 Basic Employee AD&D Coverage Employee Contribution Optional coverage Optional coverage 100% of cost for coverage above $50,000 Basic Dependent Life and Basic Employee AD&D: 100% of cost No coverage No coverage 100% of cost Definition of earnings: Base pay University G Date of hire 300% of earnings, maximum of $400,000 No coverage Same as basic employee life None Definition of earnings: Base pay University H Date of hire Single: 100% of earnings Employee with dependent(s): 200% of earnings, maximum of $150,000 No coverage No coverage 100% of cost for coverage above $25,000 Definition of earnings: Base pay December 17,

44 Employer Life Coverage Continued for Retirees Life Insurance for Retirees Eligibility Requirements Life Insurance Amount Retiree Contributions University A No coverage N/A N/A N/A University B Offered to all retirees Retired from faculty appointment with 10 years of consecutive service University C Offered to all retirees Must have participated in the benefit plan while employed University D Offered to all retirees 10 years of continuous service and immediately begin receiving an immediate pension $5,000 None 100% of earnings in effect at retirement, reducing at age 66 and subsequently every year to 80%, 60%, 40%, 20% and 10% respectively (minimum of $3,000) The 10% level of coverage reached at age 70 remains in effect for the rest of retiree's life $4,600 None University E Offered to all retirees 10 years of service The lesser of: 50% of Basic Life Insurance prior to retirement or $15,000 University F No coverage N/A N/A N/A University G No coverage N/A N/A N/A University H Offered to all retirees No specific criteria (other than retirement) Less than 10 years of service: $2, or more years of service: 10% of earnings, minimum of $2,000, maximum of $5,000 45% of cost until age 65 None after age 65 None None December 17,

45 Short Term Disability Employer Type of STD Plan Eligibility Elimination Period University A University B University C University D University E University F University G University H Benefits are paid as part of regular payroll subject to usual deductions (salary continuance) Benefits are paid as part of regular payroll subject to usual deductions (salary continuance) Benefits are paid as part of regular payroll subject to usual deductions (salary continuance) Benefits are paid as part of regular payroll subject to usual deductions (salary continuance) Benefits are paid as part of regular payroll subject to usual deductions (salary continuance) Benefits are paid as part of regular payroll subject to usual deductions (salary continuance) Benefits are paid as part of regular payroll subject to usual deductions (salary continuance) Benefits are paid as part of regular payroll subject to usual deductions (salary continuance) STD Benefit Date of hire No waiting period 90 calendar days at 100% of weekly earnings Employee Contributions None Date of hire No waiting period 26 weeks at 100% of weekly earnings None Date of hire No waiting period 26 weeks at 100% of weekly earnings None Date of hire No waiting period 180 calendar days at 100% of weekly earnings None Date of hire No waiting period 15 weeks at 100% of weekly earnings None Date of hire No waiting period 26 weeks (180 calendar days) at 100% of weekly earnings Date of hire No waiting period 105 calendar days at 100% of weekly earnings Date of hire No waiting period 119 calendar days at 100% of weekly earnings None None None December 17,

46 Long Term Disability Employer Eligibility Elimination Period LTD Benefit Indexation Employee Contributions University A Date of hire 90 calendar days 66 2/3% of monthly earnings, maximum of $6,000 monthly benefit (A top-up of 13 1/3% of monthly earnings is administered during the first four months) None 33.3% of cost The 13 1/3% benefit topup portion is employer paid (via EI reduction qualification) All-source maximum: 85% of pre-disability earnings Bonus not included in earnings definition Definition of LTD: Own occupation for first 24 months from onset of disability, any occupation thereafter University B Date of hire 26 weeks 75% of monthly earnings, maximum of $7,000 monthly benefit 100% of CPI, maximum of 2% 100% of cost All-source maximum: 85% of pre-disability earnings Bonus not included in earnings definition Definition of LTD: Own occupation for first 24 months from onset of disability, any occupation thereafter December 17,

47 Employer Eligibility Elimination Period LTD Benefit Indexation Employee Contributions University C Date of hire 26 weeks 68% of the first $1,000 plus 60% of the next $ plus 50% of the remaining monthly earnings, maximum of $5,000 monthly benefit (for general support staff, effective Jan.1/08, maximum of $8,500 monthly benefit) 100% of CPI, maximum of 5% 100% of cost All-source maximum: 85% of pre-disability earnings Bonus not included in earnings definition Definition of LTD: Own occupation for first 36 months from onset of disability, any occupation thereafter University D Date of hire 26 weeks 85% of monthly net earnings, maximum insured salary $153,940, non taxable 100% of CPI, maximum of 5% 100% of cost All-source maximum: 85% of pre-disability earnings Bonus not included in earnings definition Definition of LTD: Own occupation for first 24 months from onset of disability, any occupation thereafter University E Date of hire 15 weeks 70% of the first $6,667 monthly earnings plus 65% of the next $3,333 monthly earnings, maximum of $6,834 monthly benefit 100% of CPI, maximum of 3% None All-source maximum: 100% of pre-disability earnings Bonus not included in earnings Definition of LTD: Own occupation for first 24 months from onset of disability, any occupation thereafter December 17,

48 Employer Eligibility Elimination Period LTD Benefit Indexation Employee Contributions University F Date of hire 26 weeks 66 2/3% of the first $4,167 monthly earnings plus 60% of the remaining monthly earnings, maximum of $20,000 monthly benefit All-source maximum: 85% of pre-disability earnings 100% of CPI, maximum of 3% 100% of cost Bonus not included in earnings Definition of LTD: Own occupation for first 24 months from onset of disability, any occupation thereafter University G Date of hire 105 calendar days 66 2/3% of the first $2,500 monthly earnings plus 50% of the next $4,500 monthly earnings plus 40% of the remaining monthly earnings, maximum of $10,000 monthly benefit 100% of CPI, maximum of 3% 100% of cost All-source maximum: 85% of pre-disability earnings Bonus not included in earnings Definition of LTD: Own occupation only University H Date of hire 17 weeks (119 days) Basic: 60% of monthly earnings, maximum of $8,500 monthly benefit (valued) Effective January 1, 2008: Option 1: 64% of monthly earnings Option 2: 68% of monthly earnings All-source maximum: 85% of pre-disability earnings Basic: 100% of CPI, maximum of 1% Option 1/ Option 2: 100% of CPI, maximum of 2%/ 3% Basic: None Options 1 & 2: 100% of additional cost above Basic coverage Bonus not included in earnings definition Definition of LTD: Own occupation for first 24 months from onset of disability, any occupation thereafter December 17,

49 Tuition Fee Assistance for Dependents Employer Eligibility Maximum Amount attributed to dependent University A University B Date of hire Dependent children and spouses of fulltime, part-time, probationary, retired and long term disabled full-time and part-time members Only full-time students are eligible 3 years of continuous service $2,000 per semester to a maximum of 8 semesters Bursaries valued at $130 per unit up to a limit of $3,900 per academic year based on 30 units or more Annual Fund Benefit ends Other relevant information University contributes 0.74% of the total salary budget for that academic year for regular fulltime and reduced workload members into a fund Balances at the end of the year are carried forward The total budget dollar amount for school year is $717,000 for faculty members For 2005/2006: $1,298,669 for all employees Available after retirement Available after retirement Tenable only at the University Tenable only at the University Maximum of 4 years Also eligible for spring/summer term coverage of $130 per unit For FT graduate students, the bursary is $1,950/term in school year December 17,

50 Employer Eligibility Maximum Amount attributed to dependent University C University D Immediately at hire (appointments of 40% time or more) Members spouses and dependents shall be eligible for tuition support Date of hire (must be on a regular appointment of two years or more (including approved leaves of absence and sabbaticals)) Definition of dependents: sons and daughters only $3,000 maximum per year paid to employees ($4,000 for employees in CUPE locals) Total amount reimbursed depends on participation Per semester amount given to eligible dependent in school year: $2,000 in Fall, $1,000 in Winter 50% reduction, including cooperative or internship program fees, per term for a combined total of the normal number of terms of study required for each degree pursued. Prorated for fractional load. Annual Fund Benefit ends Other relevant information The total allocated fund for school year is $671,198 for faculty members only This represents 0.622% of total salary budget No fund set for this benefit However, the cost of the benefit was $272,980 in 2007 for faculty members Available after retirement (minimum of 10 consecutive years of service prior to retirement) Benefit continues after retirement to sons and daughters of retirees taking immediate pensions Applicable to programs in any accredited universities/colleges Tenable only at the University Scholarship taxable to student December 17,

51 Employer Eligibility Maximum Amount attributed to dependent University E Full-time continuing appointment Tuition expense for spouse and dependents to a maximum of 4 years fulltime for credit towards a degree The value of the unit scholarship shall be $3,100 per year University F Date of hire Free tuition for courses at the University or spouses and eligible dependents No limits on tuition fee University G Date of hire Free tuition for any credit course(s) at the University for spouses and dependents with approval by the Senate of the University No maximum or limits per person Annual Fund Benefit ends Other relevant information The Faculty Association committee decides on the amount of scholarship each year A percentage equals to 0.55% of the faculty payroll is contributed each year to a fund by the University The average annual scholarships paid amount is about $637,000 per year for faculty members No fund is set for this benefit However, the cost of the benefit is $600,000 in 2010/2011 for faculty members (total budget is $1,400,000) No fund is set for this benefit by the employer As of March 31, 2008, the cost is $514,000 for faculty members Benefit ends upon the employee s retirement Available after retirement Available after retirement Applicable to programs in any accredited universities Tuition scholarship, taxable to the student Tenable only at the University Tenable only at the University December 17,

52 Employer Eligibility Maximum Amount attributed to dependent University H Date of hire At our university: Maximum of $3,000 per academic year per student for reimbursement of tuition fees ($1,000 in spring, if first term in program, $2,000 in fall, and maximum $1,000 in winter, all subject to the annual maximum of $3,000) plus an additional reimbursement of between $300 and $800 per academic year depending on the tuition level Other Universities: Beginning 2006, for most applications, maximum reimbursement per academic year is $2,250 Annual Fund Benefit ends Other relevant information The University sets an annual pool fund of $589,680 ( ) for faculty members only that is indexed annually by the percentage increase in tuition for the faculties of Arts, Science, and Social Sciences, or the average thereof if their percentages differ The surplus or deficit is carried forward For at our University the budget is now unlimited. All requests submitted on time will be processed. The cost for was $351,942 For other Universities the budget is $143,033 The benefits continue for a period of 5 years after the member s retirement or death Applicable to programs in any accredited universities Scholarship taxable to student Per semester amount given to eligible dependent in school year: $1,500 in Fall, $750 in Winter December 17,

53 Employee Assistance Program Employer Eligibility Limit on Utilization or Cost Services Provided Cost to provide EAP services University A University B Regular full-time employees and their family members (spouse and dependents children) Offered to full-time and regular part-time faculty and staff members and employees under collective agreements Up to 6 hours of counseling per client per calendar year No limit on utilization No cost maximum per person or per family University C Date of hire No limit or maximum on utilization In theory there is a maximum number of visits but, in practice, there is no maximum Full array of social and healthrelated assistance Short-term solution focused counseling to help individuals manage their personal and work related issues Short-term counseling for employee, spouse and dependents Family Financial Legal Smoking Trauma Addictions Stress Elder care Vocational career Employer pays full cost Other information: Approximately $150,000 per year. This represents an amount applicable to all University employees. Breakdown for faculty members is not available Employer pays full cost Other information: Cost to the University of providing this benefit: $27.84 per employee per year Employer pays full cost Other information: $3.69 per employee per month plus excess charges Other relevant information about the benefit Service beyond regular 8:30-4:30 day, with an initial appointment within 72 hours of first contact and a schedule that can be establish beyond the first contact December 17,

54 Employer Eligibility Limit on Utilization or Cost Services Provided Cost to provide EAP services University D Date of hire On-campus counseling is free for the employee Counseling Services would normally limit their services (at no cost to the employee) to seven one hour visits per problem On campus for employee: Personal issues and trauma, Relationship issues, Stress/ Anxiety, Eating disorders, Childhood sexual abuse, Bereavement, Sexual assault, Anger management, Career planning, Time management, Study skills, Problem habits Depression management Off campus: Personal issues, Family relationships, Child and youth counseling, Addictions, Sexual assault, Family abuse, Work related issues and pain management, Psychological, Vocational and educational assessments, Financial and credit counseling Group counseling programs are also offered (i.e. couple and family counseling, separation and divorce, Communication, Violence against women) by external agencies Employer pays full cost for on-campus sessions. Off campus subject to extended health care plan coverage - 80% coinsurance on registered psychologist with doctor referral up to an annual maximum of $585 per year (100% coverage if the out-of-pocket limit is reached) Cost to the University of providing this benefit is not available Other relevant information about the benefit On-campus counseling is provided as well as outcampus Health promotion through brown bag lunches is a key part of the EAP Referrals to off campus resources available December 17,

55 Employer Eligibility Limit on Utilization or Cost Services Provided Cost to provide EAP services University E Offered to full-time employees, spouse and dependents Up to 12 sessions every 12 months No cost maximum per person or per family University F Date of hire Limit on utilization is 5 visits on average (There s no dollar maximum as such as employees are entitled to approx 8 sessions of one hour) All types of counseling: Psychological Elder Care Credit Financial Personal and family Legal Counseling in: Job related issues Divorce/ Separation adjustments Alcohol and drug problems Single parenting Aging parents Grief/ Loss issues Depression Feel better about yourself Improve interpersonal relationships Stress management Employer pays full cost Other information: Total University budget of $316,000. This represents an amount applicable to all Faculty employees. Breakdown for faculty members was not available. Employer pays full cost Other information: $52,000 (including all employees) Other relevant information about the benefit Off campus independent provider December 17,

56 Employer Eligibility Limit on Utilization or Cost Services Provided Cost to provide EAP services University G University H All faculty and their dependents are eligible Offered through Warren Shepell Date of hire Employee, spouse and dependents Varies depending on the service being provided Various limitations on use of medical/service practitioners; in most cases the provincial health coverage picks up the cost where the Warren Shepell plan leaves off Maximum based on usage per benefit Up to 7 counseling sessions per calendar year per family No cost maximum per person or per family Psychologist, Psychiatrist, Dependency agencies, Family support, Assessment, counseling, referrals with respect to legal, financial, stress management, relationships, etc. Counseling for: Difficulties with your work Stress Family issues Tottering relationships Alcohol or Drug abuse Cost paid by University as a whole, not broken out by groups Employer pays full cost Other information: $42,900 per year Other relevant information about the benefit December 17,

57 SUB plans top up for Maternity / Paternity Employer Eligibility Maternity Leave Paternity Leave Parental Leave Same benefit policy applied for adoption University A Date of hire 2 weeks at 100% of salary 28 weeks at 95% of salary (less EI) 5 days at 100% of salary 2 weeks at 100% of salary 28 weeks at 95% of salary (less EI) Cannot be taken with maternity leave Yes 25% of EI benefit for 22 weeks after maternity leave less any weeks paid at 95% University B 13 weeks of continuous service and be enrolled in University s Salary Continuance and LTD program Must be employed at least 13 weeks prior to the estimated date of delivery or adoption Option A: Paid pregnancy leave for up to 19 weeks as follows: For the first 2 weeks, University pays 100% of regular salary; during the next 17 weeks, individual will receive a payment equal to the difference between 85% of regular salary and the amount of EI benefits the employee is receiving or expected to receive Option B: 4 weeks leave with full salary and benefits, taken within first 26 weeks after the birth of the child. There is no requirement to have applied for EI coverage under this option. See Parental Leave Choice between A) Paid leave for up to 19 weeks as follows: For the first 2 weeks, University pays 100% of regular salary; during the next 17 weeks, individual will receive a payment equal to the difference between 85% of regular salary and the amount of EI benefits the employee is receiving or expected to receive B) 4 weeks leave with full salary and benefits, taken within first 26 weeks after the birth of the child. There is no requirement to have applied for EI coverage under this option. An employee who has taken a paid pregnancy (maternity) leave is entitled to unpaid parental leave of 35 weeks If no financial benefits were received during the pregnancy leave, then one of the options above may be chosen during parental leave Yes December 17,

58 Employer Eligibility Maternity Leave Paternity Leave Parental Leave Same benefit policy applied for adoption University C University D University E 1 year of service and holds an appointment of one year of longer 6 months of service before and 6 months of service after the return to work and being eligible for EI benefits 1 year or more of service 20 weeks at 100% (first 2 weeks at 100% from ER, next 15 weeks at 100% ER less EI, and last 3 weeks at 100% ER paid) Maximum of 95% of earnings for 17 weeks integrated with EI benefits *see parental leave 6 weeks of birth leave, 100% income continuance for the first 6 weeks of maternity leave 24 weeks paid First 2 weeks at 100% of salary paid by the employer Next 22 weeks at 95% of salary paid by the ER less EI None 15 weeks at 100% (2 first weeks 100% ER paid, next 13 weeks at 100% ER less EI) If both parents are employed at the University, only 1 paid leave shall be granted An employee, who is not the parent taking pregnancy or adoption leave, can have a personal 10 days of paid leave around the birth or adoption of her/his child Three months notice to chair required None Parental leave: birth fathers or adoptive parents 95% of earnings for 17 weeks integrated with EI If both parents work at our university, they may share the 17 weeks 24 weeks paid First 2 weeks at 100% of salary paid by the employer Next 22 weeks at 95% of salary paid by the ER less EI If both parents are employed at the University, only 1 paid leave shall be granted Yes Yes Yes December 17,

59 Employer Eligibility Maternity Leave Paternity Leave Parental Leave Same benefit policy applied for adoption University F 1 year of service Option A: 12 weeks at 100% paid by the University Option B: 2 weeks wait at 95% paid by the University 15 weeks paid by EI and topped up by the University to 95% University G Date of hire 17 weeks at 100% (2 first weeks at 100% paid by employer, next 15 weeks at 100% paid by employer less EI) University H Date of hire The University pays 95% of salary for the first 2 weeks and 95% less EI for the next 18 weeks None Option A: 2 weeks wait at 95% paid by the University 35 weeks paid by EI and topped up by the University to 95% 100% of salary, less EI benefits, for first 12 weeks, the rest as EI only 2 days at 100% of salary Option B: 2 weeks wait at 95% paid by the University 35 weeks paid by EI and topped up by the University to 95% 100% of salary to top up EI benefits for 12 weeks, followed by EI only for the balance of the legislated 37 weeks of leave If member has taken pregnancy leave and goes right into parental leave, they can only receive top up of 100% for 26 weeks (not 29 as would be the mathematical case) The University pays 95% of salary for the first 2 weeks and 95% less EI for the next 13 weeks (Shall be taken after the maternity leave for the mother) Yes Yes, same as Parental leave 37 week policy, not maternity leave policy) Yes December 17,

60 Day Care Programs Employer Open hours Age covered Staffing / Maximum children University A 7:30 am to 5:30 pm On campus University B 7:00 am to 6:00 pm University C On-campus Employee chooses where to go Cost for the University 19 months to 6 years Total of 111 spots The day care centre is run by University employees No subsidy, market rates apply to all spots The cost: 19 to 30 months old: $41.06 per day 30 months to 5 years old: $35.95 per day 5 or 6 years old: $37.06 per day Children from 18 months to 5 years old Members with dependent children under the age of seven, and Members who have dependent children under the age of twelve in before and/or after school programs or school professional activity days are eligible for reimbursement Licensed for 63 children No maximum No cost for the University 100% of usual and customary billings to a maximum of $2,250 per child per year, prorated among claimants, with no carry over provisions if not used The nominal value of the fund for is $351,714 for faculty members Surplus and deficit shall be carried forward Is there any other relevant information about the benefit? Insufficient spaces, as there are no guaranteed spots for faculty The day care is a separate employer and is a licensed, non-profit, self-supporting corporation As of April 26, 2008, Contract Academic Staff are eligible for the full amount of reimbursement regardless of workload December 17,

61 Employer Open hours Age covered Staffing / Maximum children University D University E University F Full and half day programs 7:30 am to 5:30 pm On campus On-site centre Monday to Friday from 7:30 am to 5:30 pm Day care center open from 8:00 am to 5:45 pm On campus A wide variety of Child Care Services are available through 4 centers operating on the university campus for children 3 months through school age 1 profit daycare centre operating on university north campus Centers are separately incorporated nonprofit Children range from 18 months to 5 years Children from 6 months to 5 years old It depends on the age of the children and the spaces available Capacity of 200 children At least 50 spaces are assigned on a priority basis to the children of faculty members The day care program is a separate entity from University, there is a maximum of children they can take but we do not know the number Cost for the University Fees vary according to the program Employer provides the space and maintains the buildings There is no cost of maintaining the facility. Centers pay own costs. University land and/or facility provided rent free Progress being made to amalgamate three daycare centers into one facility with some funding from the university in addition to land. Profit centre operates as separate entity with applicable rent charges Cost of maintaining the facility is part of the rent payments from the third party who operates the day care No cost and no subsidy for the University The University provides the building. All expenses such as building maintenance, utility, custodial and grounds costs are share 50/50 between the University and the day care The estimated amount is not available at this time. All employees may apply at the Day Dare Is there any other relevant information about the benefit? The University invested $2,800,000 in a new facility that opened in 09/2004 This capital will not be repaid to the University This service is offered on campus, however, it is not offered by the University This service is independent from the University December 17,

62 Employer Open hours Age covered Staffing / Maximum children University G Private day care off campus, but on University property N/A University H On campus Children from 6 weeks to 5 years old University is guaranteed 75% of available spaces which amounts to 70 spaces The University has 80% of spaces available for members of the University community (students, staff, but there are no protected spaces for members of Faculty Association) Cost for the University Nil, private business Subsidy is in the form of no rent paid The rental estimate is unknown. 40% is the approximate proportion of eligible faculty members. Is there any other relevant information about the benefit? Expansion complete The University paid for the expansion December 17,

63 Appendix Valuation Methodology & Assumptions The following provides a brief description of the methods and assumptions used to value each of the benefit plans measured. RETIREMENT PLANS Defined Benefit Pension Plans The following plan design characteristics are considered in determining plan values: Eligibility to participate in plan Vesting requirements Eligibility to receive unreduced benefits under the plan Eligibility to receive reduced benefits under the plan Definition of pensionable earnings Definition of credited service Normal retirement benefit Early retirement reductions Required post-retirement benefit increase Temporary benefits prior to normal retirement age Defined benefit plan values are calculated using a method known as the projected unit credit normal cost method. Under this method the present value of benefits accrued this year, taking into account expected future earnings increases, produces the annual plan cost. No measure of liabilities is made for current inactive or retired employees or their beneficiaries. The calculations in assessing the annual plan cost use the following economic and actuarial assumptions: Valuation interest rate: 6.25% Annual salary increase: 4.00% Annual YMPE increase: 3.50% Annual ITA benefit limit increase: 3.50% CPI increase: 2.50% December 17, 2010 A-1

64 Appendix Valuation Methodology & Assumptions Mortality: Retirement: Withdrawal: Marital Status Spouse s Age 1994 UP table projected to This table has separate rates for males and females. In accordance with the following rates and specific ages: Age 55: 60% Age 60: 70% Age 62: 40% Age 65: 100% In accordance with our decrement rates table, the following of which are sample rates: Age 25: 15.0% Age 35: 7.5% Age 45: 3.0% Age 55: 0% 100% married Male spouse is 3 years older than female spouse For Universities who sponsor an unregistered plan to all members with respect to pension benefits in excess of benefits above the Income Tax (Canada) Act (the ITA ) registered plan defined benefit limits (known as a supplemental pension plan), benefit values were reflected under a separate benefit category labeled SERP. Note that for University D, we assumed that the $2,800 limit on the total pension was indexed at the same rate as the ITA defined benefit limit. December 17, 2010 A-2

65 Appendix Valuation Methodology & Assumptions Defined Contribution & Other Savings Plans The following plan design characteristics are considered in determining plan values: Eligibility to participate in plan Eligibility to receive employer contributions under the plan Vesting requirements Definition of pensionable earnings Percentage of earnings contributed by the employer on a non-matching basis Percentage of employee contributions matched by employer Schedule of variation in employer contribution by age, service or earnings Maximum employer benefit Maximum permitted employee contribution The employer value is calculated as the expected sum of contributions by the employer over all active employees for the current year taking into account each employee s eligibility to participate, earnings level and expected employee contributions. Retirement Allowance/Severance Plan We reflected the value of providing a special retirement allowance in accordance with the plan provisions disclosed in the summary of plan provisions. For consistency, the values were calculated by applying the projected unit credit normal cost method in the same manner as for a defined benefit pension plan. With respect to calculating the value for University G, we assumed that a severance payment equal to 6 months of base pay would be appropriate in light of the nature of this policy. For University E, we have valued the phased retirement program as a 50% of salary lump sum payment on a retirement basis. Finally, the analysis in this report does not take into account any salary savings to the employer resulting from early retirement (or termination). December 17, 2010 A-3

66 Appendix Valuation Methodology & Assumptions OTHER POST-RETIREMENT BENEFIT PLANS (OPRB) The OPRB plans group consists of measuring plan values for post-retirement medical (PRM) plans, post-retirement dental (PRD) plans and post-retirement life insurance (PRL) plans for each university included in the benchmarking analysis. The following plan design characteristics are considered in determining plan values: Eligibility to participate in plan Key differences in benefit coverage relative to the pre-retirement plan Required retiree contributions Post-retirement benefit plan values are calculated using a method known as the projected unit credit normal cost method. Under this method: Benefit plan values are derived by calculating age-related annual claim costs based on each university s plan design characteristics. These annual claim costs are then projected to calculate the payments over the life span of each demographic individual employee s projected retirement years. The employee s annual accrual is determined by discounting the value of the projected benefits to the date of the valuation and dividing it by their projected service at retirement. The employee s annual accrual amount (also known as the service cost) is then allocated between employer value and employee value using the projected retiree contributions, where applicable. The following economic and actuarial assumptions were used to calculate the annual plan cost for each post-retirement benefit plan. Valuation interest rate: 6.25% Annual salary increase: 4.00% CPI increase: 2.50% December 17, 2010 A-4

67 Appendix Valuation Methodology & Assumptions Mortality: Retirement: Withdrawal: 1994 UP table projected to This table has separate rates for males and females. In accordance with the following rates and specific ages: Age 55: 60% Age 60: 70% Age 62: 40% Age 65: 100% In accordance with our decrement rates table, the following of which are sample rates: Age 25: 15.0% Age 35: 7.5% Age 45: 3.0% Age 55: 0% It is assumed that 80 percent of employees have spousal coverage at retirement. The annual medical inflation trend factor for the current year is assumed to be 9.5 percent, declining to an ultimate rate of 5 percent over a 7-year period. The annual dental inflation trend factor for the current year is assumed to be 5 percent. December 17, 2010 A-5

68 Appendix Valuation Methodology & Assumptions GROUP BENEFITS Medical and Dental Plan Values Medical and dental plan values are derived using respective calculation methods which produces a series of manual per capita claim costs by age based on each university s benefit plan characteristics. The following plan design characteristics are considered in determining medical plan values: Eligibility Deductibles, co-insurance, out-of-pocket maximum, internal and overall plan maximums Category of expenses include hospital room charges over and above ward level, prescription drugs, paramedical services (physiotherapist, chiropractor, psychologist, massage therapist, podiatrist, speech therapist, osteopath, naturopath, acupuncturist, audiologist), other medical services and supplies (private nursing care, convalescent care, accidental injuries to natural teeth, ambulance, medical services, glucose monitor, orthopedic shoes, orthotics, hearing aids, durable medical equipment), vision care (eye glasses, contact lenses, eye exams, laser eye surgery) and out-of-country coverage (including travel assistance) Required employee contribution The following plan design characteristics are considered in determining dental plan values: Eligibility Deductibles, co-insurance, annual or lifetime plan maximums Category of services include, preventive/diagnostic (recall exams), minor restorative, endodontics, periodontics, dentures, other major restoratives and orthodontics (adult/child) Dental fee guides Required employee contribution The calculations assume the benefit elections as provided in the demographic data file by University of Ottawa. The total value of each plan equals the sum of the rates calculated for each employee. The employer value is equal to this total value minus the employee contributions required for participation. The employee value is the contribution required for plan participation. The employee value does not include payments by the employee for deductibles or required co-payments. December 17, 2010 A-6

69 Appendix Valuation Methodology & Assumptions Flexible Benefit Plans Regarding flexible benefit programs, due to the degree of complexity (number of plan options) these plans can have, our approach in comparing flex plans against conventional plans is to value the plan or benefit option, depending on the design, which represents the most popular option chosen by employees. Details generally gathered on flexible benefit plans include amount of flex dollars/credits provided, price tags for each option and participation rate. We review each flexible benefits plan to determine which benefit option to value and the level of employer contribution expressed as a percentage of the total benefit costs. In cases where the employer funds more than the cost of a particular option, the excess amount is assumed to be deposited in a health care spending account. If the amount of the HCSA credits is less than $500, we assumed that 100% of the credits will be fully utilized. However, if the amount of the HCSA credits is more than $500, then we assumed that only 85% of the HCSA credits will be utilized. We have included the values for the flexible benefit plans and health care spending accounts with the medical values. Note that for University E, we have valued $200 of the $400 flexible benefit as an HCSA since the default option is to allocate $200 to the Professional Expense Reimbursement (PER) and $200 to the HCSA when no election is made by the employee. For employers that pay employees who decline medical and/or dental coverage, the employer value of the respective plan is increased, if available, by the amount of the opt-out credit for employees who decline medical and/or dental coverage. Life Insurance Values The following plan design characteristics for employee life, dependent life and AD&D are considered in determining plan values: Eligibility Covered amount for eligible active employee; if covered amount is pay-related, definition of covered earnings Schedule of variation in coverage by age, service or earnings Minimum and maximum employee coverage amount Required employee contribution Note that Optional life benefits, which are employee-paid, are not considered in the results. As well, survivor benefits that are payable from pension plans are not valued. December 17, 2010 A-7

70 Appendix Valuation Methodology & Assumptions Benefit calculations are based on one-year term insurance costs applied to the eligible benefit coverage. The rates used in the benefit calculations vary by age and gender. For spousal dependent life costs, it is assumed that female spouses are 3 years younger than male. With respect to dependent child, a uniform rate per $1,000 of coverage is calculated. Disability Benefit Values Disability benefits include short-term disability (may include sick leave in the form of accumulated sick days during a year) and long-term disability. Employers may offer all or any combination of these components. Long-term disability takes into account coordination with C/QPP as well as all-sources maximums. The following plan design characteristics are considered in determining plan values: For Sick Leave plans: Eligibility to participate in sick leave plan Number of days of sick leave granted per year For STD plans: Eligibility to participate in short-term disability (STD) plan STD waiting period STD benefit as a percentage of earnings, including definition of earnings Coordination with EI benefits, if applicable Schedule of variation in benefit by age, service or earnings Minimum and maximum STD benefit amount Duration of coverage Required employee contribution for STD coverage December 17, 2010 A-8

71 Appendix Valuation Methodology & Assumptions For LTD plans: Eligibility to participate in long-term disability (LTD) plan LTD waiting period LTD benefit as a percentage of earnings, including definition of earnings Schedule of variation in benefit by age, service or earnings Minimum and maximum LTD benefit amount Coordination of benefits with C/QPP All-sources maximum Duration of coverage Required employee contribution for LTD coverage Costs are developed based on a model that determines a one-year term cost for disability coverage. This determination is based on a combination of insurer tabular rates with variation by age and gender and nationally accepted tables of disability incidence and persistency. Tuition Support We gathered information on each university s annual tuition budget or funds for the most recent year. We derived an annual cost per member for each university by dividing their annual budget of available funds by the number of their eligible members. For those universities where information was not provided we have made the following assumptions. We have increased University D s 2007 tuition fund by 3 years and University G s 2008 tuition fund by 2 years at the assumed annual inflation rate of 2.5%. We also estimated University B s tuition value by increasing their 2008 study tuition value by the average increase of University C s, University D s, University E s, University G s and University H s tuition value from their 2008 study tuition values. The annual cost per member derived was then applied to the University of Ottawa workforce to produce plan costs and correspondingly the benefit values. It was deemed that all members are eligible for this benefit. December 17, 2010 A-9