The purpose of this Communication is to provide information on premium and benefit adjustments under the new collective agreements relating to disability insurance, life insurance for the management of the public service and long-term disability for employees. Premium rates for disability insurance, Insurance Life utility management and long-term disability plans are based on employees` salaries. As a result, premiums are adjusted based on wage increases negotiated by collective agreements. The revised bonuses will apply from the first salary period following the signing of the collective agreement and would use the revised rates set out in the new collective agreement. Each collective agreement has a number of days required to implement wage adjustments. On the Collective Agreements page, you will find details on the specific units of collective agreements. Note: Bonus adjustments are not collected in the event of a retroactive salary adjustment for the period between the expiry date of the previous collective agreement and the first salary period after the date of signature of the new contract. Premium adjustments are managed by the civil service payment centre or compensation services. Salary and compensation adjustments will only be reported to Sun Life and Industrial Alliance after the salary and income adjustments in the pension plans have been updated.
Since December 2016, the Treasury Board of Directors has entered into preliminary agreements with a number of bargaining units. Collective agreements for more than 151,000 employees have already been signed or will be signed shortly. Details on the impact of retroactive salary adjustments on group insurance benefit plans are presented below. Note: Sun Life and Industrial Alliance are not required to meet the implementation schedule for collective agreements. For more information on the status of collective agreements, please visit the Collective Bargaining Update page. For employees who receive rehabilitation income, retroactive salary adjustments affect their rehabilitation income. This information note will be updated as more information becomes available. Employees admitted for disability benefits who have received their first Disability Award: Sun Life and Industrial Alliance perform all necessary calculations to adjust disability benefits and contact all affected employees as soon as the employer provides them with the necessary information on salary adjustment. . . .