Municipal Employees Benefit Association of Calgary

1. Information Session APTEA MEBAC Municipal Employees Benefit Association of Calgary

2. What is MEBAC? • Municipal Employees Benefit Association of Calgary • Covers 90% of employee population (All but IAFF) • Established in 1995 under Alberta Societies Act • Not-for-profit Association • Mandate is to manage the employee contributions towards benefits and to negotiate benefits with the City

3. What is MEBAC? (Continued) • Managed by a Trustee Executive Committee • Employees are represented on the MEBAC Executive Committee by their union or association • One Trustee and one Alternate per group

4. MEBAC Objective The common objective is to deliver a consistent, competitive level of benefits to employees--using strength in numbers to get better coverage and keep costs as low as possible.

5. Executive Committee Representatives/Alternates:

6. MEBAC Officers: • President – Rory Gill • Vice President – D’Arcy Lanovaz • Treasurer – Anthony Montanaro • Secretary – Jody Sallans

7. MEBAC - Responsibilities • Manage Employee Contributions • Work with the City to ensure benefits are delivered as outlined in the benefit agreement • Manage the LTD contract with Great West Life • Negotiate benefit coverage with the City

8. MEBAC Structure • ResourcePersonnel • Communications Committee

9. City supported MEBAC creation Method of determining benefits outside collective bargaining Provides consistent benefits to all employees Governed by an agreement between the parties Administration and expenses funded by The City

10. What is the Purpose of Benefits? Designed to meet individual and family needs in the event of death, disability, illness and maybe retirement Expenses may be planned and budgeted for, others are potentially catastrophic

11. MEBAC Financial Cycle Investment Income Member Contributions Fees and Expenses Paid Benefits Diagram from Foundations of Trust Management Standard (IFEBP)

12. City Core and MEBAC Together 2017 Benefits Paid $140M Current Members: 14,942 Current Dependents: 24,677 Total: 39,619

13. Plan Design - Group Life (City Paid) • Pays two times (2X) an employee's annual salary • as of 1st day of 1st pay each year, rounded to next $1000) • 2X means two times the employee's basic wage rate, not including shift differential, overtime, or relief pay • Premiums City paid • Maximum coverage is $650,000 • Lump sum payment to beneficiary • Pays regardless of cause or circumstances of death • Living Benefit provision – • allows for an advance payment up to 50% of benefit up to a maximum of $50,000 in the event of terminal illness. • advance deducted from the final death benefit.

14. Plan Design - Optional Life (MEBAC) • Employee • Units of $10,000 to a max of $1,000,000 but not more than four times employee's annual salary. Coverage is rounded to next higher $10,000 if not already a multiple of $10,000 • Spouse/Partner • Units of $10,000 to max of $400,000 • Separate rate tables for male/female, smoker/nonsmoker, and age • Rates determined by the insurer based on plan demographics and group experience

15. Sickness & Accident (S&A – City Paid) • Replaces 90% of gross regular earnings otherwise lost as a result of sickness or accident.  • 119 calendar days maximum from date of disability • For limited term and seasonal employees with less than 365 days of continuous service at date of disability, the plan pays 119 days or if laid off before the 119th day, the plan will pay for 105 days.  • Self-insured • Funded by the employer (The City) and therefore a taxable benefit, assessed for Canada Pension Plan (CPP) and Employment Insurance (EI) premiums.

16. Plan Design - Long Term Disability (LTD - MEBAC) • Covers wage loss after 119 calendar days of short-term disability. • Benefit payments calculated on a tiered schedule: • 67% of first $27,000 of gross annual earnings • 55% of next $90,000 • 50% of remainder. • Paid bi-weekly on regular payroll dates. • Premiums 100% employee paid based on income. • Adjusted annually based on plan experience • Payments are tax-free and no Canada Pension Plan or Employment Insurance premiums are deducted. • Payments may be made to maximum age of 65.

17. Plan Design – Health (Opt-Out Option – City Paid) Level One • Extra $2,000 for Health Spending Account as of January 1, 2018 • No Extended Heath Care coverage or Out-of-Province Emergency Travel Medical

18. Plan Design – Health (Cost Shared) Level Two • Prescription Drug Coverage • 90% coverage unless otherwise indicated • Pay-Direct Drug Card • Generic Substitution • 90% coverage on select over-the-counter (OTC) drugs, i.e., sustained-release ASA; single entity antihistamine drugs; single entity decongestants • Dispensing Fee Cap • The maximum dispensing fee the plan will pay in 2018 is $8

19. Plan Design – Health (Cost Shared) Level Two • Health Benefits include: • Ambulance • air/ground ambulance to or from a hospital, in the event of an illness or injury • Orthotics • 100% coverage up to a maximum of $200 per calendar year. Physician, Podiatrist or Chiropodist's written order required • Hearing Aids – 100% coverage; $600/5 years • Home Nursing Care – usual & customary charges; pre-approval required • Hospital – Private or semi-private • Medical Equipment and Supplies – 100% coverage; pre-approval recommended

20. Plan Design – Health (Cost Shared) Level Two • Paramedical Benefits • There is a combined annual maximum of $800 per participant, which can include eligible family members and/or dependents, applicable to any combination of the services listed below. • Eligible Services: • Acupuncture and Acupressure • Allergy Testing • Active Therapist • Chiropractic • Magnetic Therapy and Supplies • Massage Therapy • Midwifery • Naturopathy • Nutritional counseling • Phototherapy • Physiotherapy • Podiatry and Chiropody • Speech Language Pathologist • Ultraviolet Therapy • Occupational Therapy • Psychologist of Social Work (MSW) - $750 annual maximum per participant

21. Plan Design – Health (Cost Shared) Level Two • Out of Province/Out of Country Coverage • Benefits are provided when a medical emergency occurs outside Canada or the employee's province of residence. • Covers emergency medical services while employees are traveling on vacation and/or business trips. • Up to $2,000,000 of emergency medical coverage, subject to contract maximums. • Valid for trips up to 30 days.

22. Plan Design – Dental (Opt-Out Option– City Paid) Level One • No Dental Care coverage • Extra $1100 for Health Spending Account - as of January 1, 2018 • Must lock in enrollment for two years

23. Plan Design – Dental (Cost Shared) Level Two As of January 1, 2015 • basic services reimbursed at 90% • Includes cleanings, checkup, fillings, extractions, fluoride treatments, periodontal • Dental Fee Guide: Alberta Blue Cross Usual and Customary fee schedule, adjusted annuallyto market rates • major services reimbursed at 80% • basic and major combined maximum $1,500 / year per dependent • orthodontic services - child only - reimbursed at 50% • $2,000 / lifetime Ortho per eligible dependent only

24. Plan Design – Dental (Cost Shared) Level Three • basic services reimbursed at 100% • Includes cleanings, checkup, fillings, extractions, fluoride treatments, periodontal • Dental Fee Guide: Alberta Blue Cross Usual and Customary fee schedule, adjusted annuallyto market rates • major services reimbursed at 80% • Includes crowns, bridges, dentures, implants • basic and major combined maximum $1,750 / year per dependent • orthodontic services, adult & children, reimbursed at 50% • $2,500 / lifetime Ortho per employee and eligible dependent

25. Health Spending Account – (City Paid) • Non-taxable • Expenses must be qualified medical expenses under CRA guidelines • Can carry-forward your expenses from previous year • Eligible Expenses can include: • Group plan coinsurance amounts • Expenses exceeding group plan maximums • Employee portion of group plan health and dental premiums • 60 days from calendar year end to submit expenses

26. 2017 Health, Dental, HSA - Costs • 2017 Total Dental Cost $19M • 2017 Total Drug Cost $15M • 2017 Total Health Services Cost $17M • 2017 Total Health Spending Cost $6M • 2017 Total Travel Cost $323K

27. How much do you pay?

28. Coordination of Benefits If you are covered for health and dental under another plan Receive up to 100% coverage How to Claim: For your claims, claim under GSC first and then submit to the other plan. For your spouse, claim under their plan first and then submit to GSC. For children, claim first under the parent whose birth month falls earlier in the calendar year, then to the other parent’s plan.

29. Submitting Claims • Have your service provider submit for you! • Submit claim online with Green Shield Canada • Massage therapy, chiropractor, physiotherapist, medical items, vision/optometry, orthodontics, acupuncture, prescription glasses • Register for Plan Member Online Services at www.greenshield.ca • Complete a claim form and send by regular mail • Forms at www.calgary.ca/benefits • www.greenshield.ca

30. Questions

31. MEBAC AGM June 20, 2018 at Noon Calgary Power Reception Hall Municipal Building • Lunch for the first 150 registrants (Registration starts at 11:30) • Door Raffles

32. Contact David Knudson APTEA Trustee email: david.knudson@calgay.ca Phone: 403-268-4495 Eliza Davis HR Consultant/MEBAC Administratoremail: eliza.davis@calgary.caphone: 403-268-8396