1 / 24

THE MANITOBA TEACHERS' SOCIETY SHORT TERM DISABILITY PLAN

THE MANITOBA TEACHERS' SOCIETY SHORT TERM DISABILITY PLAN. Agenda. What is the Purpose? How Does it Work? How Do You Get It?. What Is The Purpose?. To provide income to disabled teachers who run out of sick leave before the Disability Benefit Plan (DBP) starts

vinnie
Download Presentation

THE MANITOBA TEACHERS' SOCIETY SHORT TERM DISABILITY PLAN

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THE MANITOBA TEACHERS' SOCIETYSHORT TERM DISABILITY PLAN

  2. Agenda • What is the Purpose? • How Does it Work? • How Do You Get It?

  3. What Is The Purpose? • To provide income to disabled teachers who run out of sick leave before the Disability Benefit Plan (DBP) starts • Payments start when sick leave ends and stop when DBP starts, so there is no gap • Designed specifically for teachers

  4. What Is The Purpose? • Who needs it? • Those who are chronically ill and regularly access sick leave • Those who change divisions • New teachers, especially those who have not qualified for EI • Approximately 25%of new DBP claimants do not have 80 days sick leave • Many others not claiming DBP do not have enough sick leave • STD claims statistics show that claims fall fairly evenly at all ages • 85 STD claims were paid in 2011 in 12 Associations • Average of 1 claim/year for every 70 teachers

  5. What Is The Purpose? • What are your alternate sources of income? • EI sickness benefits – inadequate: • New teachers may not qualify (need to work 800 hours) • 2 week waiting period • Maximum insured earnings $45,900/year • Taxable benefit of 55% of earnings • those earning $45,900 or more get less than 55% • teacher earning $75,000 gets only $485 weekly or 32% taxable benefit • Savings, loans

  6. What is the purpose? • STD Plan replaces EI sickness benefit • Pays 60% of earnings, no maximum income, tax-free (approximately 80 - 85% of take-home pay) – teacher paid • If you negotiate a Board paid plan, the benefit is 70% and taxable

  7. What is the purpose? Sick Leave 100% oftake-homepay DBP 80% of take- home pay EI32% of pay (taxable) Disability Start 80 working days 10 working days * Assuming member qualifies for EI and has 10 days sick leave

  8. What is the purpose? Sick Leave100% oftake-homepay DBP 80% of take- home pay STD80 - 85% of take-home pay 10 days Disability Start 80 days

  9. 2nd year Senior High Math teacher, limited term contract • 34 banked sick leave days • assistant high school hockey coach, Math club leader • single, living alone, active social life, excellent health Meet Patrick M.

  10. monthly payments: rent, student loans, car loan • hockey injury beginning of October at practice • several leg fractures, reconstructive surgery needed • recovery time: 12 weeks, 60 working days

  11. 50 years old; 25-year veteran; general contract • married, two children in university; mortgage and car payments • used up sick leave last year due to car accident; 20 days sick leave available • has a massive heart attack; needs triple by-pass surgery • recovery time: 8 weeks; 40 working days Meet Dan B.

  12. general contract teacher, 10 years experience • first year in division • married with one child; newly pregnant with second child; 20 sick days available • complications with pregnancy; must spend 5 months on bed rest • mortgage, day care expenses, car loans Meet Alanna T.

  13. How Does It Work? • All teachers must join (except substitutes) • Pricing is based on the aggregate claims experience of the Plan and not the Association • Provincial Plan has lower expenses and rates than stand alone plans – rates reviewed in April, for September 1 renewal

  14. How Does it Work? Costs (Sept 2012) • 0.184% of pay • $75,000 salary = $11.50/month • EI rebate offsets part of the cost – typically paid to local Association to offset dues • Payroll deduction • 10 premium – 0.178% 11 premium 0.17% 12 premium – 0.184%

  15. How Does it Work? EI Premium Rebate Employer share 7/12ths Employee share 5/12ths 0 Full rebate Sick leave rebate 40% 28%

  16. How Does it Work? EI Premium Rebate • EI sick leave rebate – already negotiated between Division/Association • Division may legally retain 7/12ths of additional EI rebate, balance to teacher • Negotiate for the employer share of the additional rebate also – you pay the full premium • Additional rebate (approximate) • Employer share $2.58 • Teacher share $1.84 $4.42/teacher/month

  17. Bargaining Short Term Disability Plans Most Common EI Agreements Negotiated Employee share 12/12ths Sick Leave Rebate Full Rebate 28% 40% 0

  18. How Do You Get It? • Decide whether your Association wants the plan • MTS can assist you • Bargain administration/EI rebate ownership with Division • Usually part of Collective Bargaining • Contact MTS staff officer for assistance • Letter of agreement or in CA

  19. How Do You Get It Collective Agreement should reflect four points: • Division will administer the short term disability plan • Eligibility to participate • Deduction of premiums • Refund of additional EI Rebate MTS will supply the language.

  20. Bargaining Short Term Disability Plans Some Recent EI Agreements Employer share 2/12ths Employee share 10/12ths 0 Sick Leave Rebate 40% Full Rebate 28% 2/12ths = $.74/month/teacher

  21. ?Questions? Contact info: Glen Anderson 204 831 3052 Or toll free at: 866 494 5747 Or at:ganderson@mbteach.org

More Related