To retire or not retire? For some members, that may be the question.
Thanks to this government’s incessant attacks on public service employees, some of our members may be forced to retire earlier than they had planned. In last year’s budget, the government made some substantial changes to retiree benefits; most of which take effect on April 1, 2015.
“Right now, our main concern is our members’ eligibility for the Public Service Health Care Plan for retirees,” said National President Doug Marshall.
The 2014 budget has made it harder to sign up for the plan: instead of two pensionable years, members will now need to accrue six years to qualify for the benefits plan.
“For our seasonal members at Parks Canada, this small change has some significant repercussions,” explained Marshall. “Some seasonal members only earn one pensionable year for every three seasons worked; these members would need to work 18 years for Parks Canada to qualify for the health care plan during retirement.”
This particular change takes effect on March 31, 2015. For some members, this change may be a deciding factor on whether to retire early.
The 2014 budget announced significant changes to the Public Service Health Care Plan for retirees. For one, the premiums are moving to a 50-50 cost-sharing model between employees and the employer (it was previously 25-75). The new model also allows for some exemptions for low-income members.
Cost-sharing will be phased in between 2015 and 2018:
April 1, 2015: 31.25% 68.75%
April 1, 2016: 37.5% 62.5%
April 1, 2017: 43.75% 56.25%
April 1, 2018: 50% 50%
Members who have any questions about how these changes will affect them should speak to their department’s manager of human resources.
You can find more information about the changes to the plan on this Treasury Board web page.