True Benefits Blog

2010 Government Benefits Update

Each year, government benefits such as EI and CPP are updated. The figures for 2010 have been summarized on a PDF available at our website.

Rachel von Sturmer, BA, GBA, CFP

www.truebenefits.ca

2010 EI Maximum Update

The federal government recently announced new Employment Insurance (EI) premium rates and maximums for 2010.

Previously, the annual maximum for insurable earnings was $42,300 and the corresponding weekly EI benefit max was $447.

This is increasing slightly for 2010 to $43,200 and $457 respectively.

Benefits plans that have Short Term Disability (STD) or Weekly Indemnity coverage may be affected by this. If your plan has a set weekly maximum, such as $450, the contract may need to be amended. If your plan has a description such as "equal to the current federal maximum", then the coverage automatically updates each year and nothing need be done. Ideally, STD plans are set up with a floating definition for maximum coverage.

PS: if your business offers STD or WI coverage to employees, make sure you take advantage of the EI Premium Reduction program.

If you have any questions, please feel free to call our office at 604.872.2866 or email info@truebenefits.ca.

Rachel von Sturmer, BA, GBA, CFP

Popular Employee Benefits and Allowances

According to Benefits Canada, here are the most commonly offered employee benefits and allowances. Does your office cover these?

Insured benefits:

• Medical (71%)
• Life insurance (57%)
• Dental (52%)
• Accident (47%); and
• Vision care (35%)

Allowances:

• Mobile phones/telecommunications (29%)
• Cars (29%)
• Gym memberships (28%)
• Childcare (24%)
• Food (18%)
• Public transportation (15%); and
• Housing (13%)

Rachel von Sturmer, BA, GBA, CFP

www.truebenefits.ca

2009 Employee Wellness Survey

Did you know that this is Canada’s Healthy Workplace month (October 5 to November 1, 2009)?

The 2009 National Wellness Survey conducted by Buffett & Co. reveals that Canadian organizations are making their employee’s health a priority.

According to the survey results, work-related stress, mental health issues, and high blood pressure are the top three health risks affecting participating organizations. In 2006, the top three major health risks were work-related stress, stress outside the workplace, and smoking. Seeing a pattern?

Stress in the workplace can have a significant impact on productivity, employee engagement, and health-related costs.

The ideal result of a wellness initiative is an increase in employee health and morale, and a decrease in absenteeism and presenteeism.

Almost all insurers now offer employee and family assistance programs, and wellness plans that can include smoking or blood pressure clinics, 24 counseling hotlines, and nutrition/weight management assistance.

What is your workplace doing to encourage employee wellness? Let us know in the comments section.

Rachel von Sturmer

www.truebenefits.ca

New Grads Losing Benefits Coverage?

Under most employee benefits plans, dependent children that are full time students can stay on their parents' benefits plans until age 25. When they graduate or turn 26 they must find their own coverage.

For students continuing studies past age 25, most universities and colleges have voluntary benefits plans that are often cost effective and offer good protection for health and dental claims.

For new grads, the ideal situation is to land a job with great employee benefits. But, if you are entering self-employment, an unpaid internship, or take a position without group benefits, an individual health plan is the next best thing.

Even better, if you enroll in an individual plan within 60 days of losing your old coverage, you won't have to disclose any medical information in order to be approved! This is a real perk when you have an existing condition, prescription or treatment plan. Plans are modular and can range from basic to very comprehensive, so there is always a solution that will be budget-approved.

If you have any questions, please feel free to email info@truebenefits.ca or call 604.872.2866.

Rachel von Sturmer, GBA, CFP

www.truebenefits.ca

Frequent Flier Points A Taxable Benefit?

It seems like every credit card available today has some kind of fringe benefit. Whether it is frequent flyer points, points towards purchases or cash back, a credit card is no longer just a way to defer payment.

After accruing frequent flyer miles while travelling on company business, employees may occasionally cash in their points for vacations, or other merchandise. In the eyes of Canada Revenue Agency (CRA), employees were supposed to calculate the resulting benefit of these points and include it as income on their personal tax return!

However, the CRA has now introduced new guidelines around claiming frequent flyer miles on a personal tax return. Employees don't have to report them if:
• The points are not converted to cash
• The plan or arrangement is not an alternate form of compensation as part of your job
• The plan or arrangement is not designed to avoid paying tax

These rules apply when the employee controls the points. If the points are controlled by an employer, and given to the employee in a situation such as a bonus, employers must continue to report the fair market value of any benefits received by the employee on their T4 slip when the points are redeemed.

Vision Care & Preferred Providers

Did you know that many group benefits plan providers have built in discounts for vision care? Called Preferred Provider Networks, these are savings pre-negotiated by the insurer on behalf of their clients.

Before ordering new contact lenses, glasses or having an eye exam or laser eye surgery done, check your employee benefits booklet under the Vision Care section, or log in to your plan member website.

For example, Sun Life has special offers from ClearlyContacts.ca and Lasik MD with savings of up to 20% on eyewear and 10% off laser eye surgery. That can add up!

For more information, please feel free to contact me at rachel@truebenefits.ca.

Rachel von Sturmer, Benefits Specialist

www.truebenefits.ca

Dental Fee Guide Changes for 2009

Every year, each Province's Dental Association reviews and revises their fee guide; these are benchmarks used by insurers when determining whether fees are reasonable. The exception is Alberta, which stopped publishing a fee guide in 1997. Most insurers use the 1997 fee guide plus an inflationary factor to determine reasonable costs per service.

Here are the fee guides per for BC and Alberta, expressed as a % increase over 2008:

• Alberta 6.7%

• BC 2.7%

Tip: ask your dentist whether their prices are above the fee guide. If they charge more, ask them why! Expenses in excess of the fee guide are usually not covered by insurance plans.

Rachel von Sturmer, GBA, CFP

www.truebenefits.ca

Employees Choose Benefits Over $15,000 Cash

That's just one of the key findings from Sanofi-Aventis' annual healthcare survey. Here are some interesting highlights:

• Almost half (47%) of Canadian employees report their health as excellent or very good over the past year

• Stress at home and work is taking a toll: almost one-third (31%) agree stress in their home or personal life made them physically ill in the past year, while 38% report the same regarding workplace stress

• Over one in four (28%) say they did not get much work done when experiencing stress

• 52% of respondents would prefer to keep their health benefit plan over $15,000 in cash.

• The most valuable part of a benefits plan for 64% of employees is the day-to-day health coverage, such as prescriptions, for themselves and their families

• With increasing costs an issue, it is reassuring to learn that 57% of respondents strongly or somewhat agree they have an obligation to help their employer control the plan costs

• Just 35% of respondents with access to workplace wellness programs say they use the programs, either definitely (11%) or 'kind of' (24%)

• For employers looking to engage employees on wellness: plan members said they would be likely to change their health behaviour if their employer subsidized a gym membership (62%), provided small incentives (61%), offered healthy food choices (56%) more flexible hours (55%), or breaks during the work day for fitness (51%)

Rachel von Sturmer, GBA, CFP

www.truebenefits.ca

FAQ: Get 100% of Your Claim Paid

If you are covered for health and dental benefits under more than one plan, your benefits will be co-ordinated based on guidelines developed by the Canadian Life & Health Insurance Association (CLHIA). This is called co-ordination of benefits (COB).

The total amount of reimbursement you receive cannot exceed 100% of the eligible expense incurred.

1. You and your spouse must first submit your claims through your own employer group plan.

2. If you are submitting the balance of ineligible expenses to another plan, you must include the original explanation of benefit (itemization of expenses) that you receive from the first submission.

3. Claims for dependent children must be submitted to the plan of the parent who has the earlier birthday in the calendar year (the year of birth is not considered), either when the parents are cohabiting or when there is a shared custody arrangement in the event of separation or divorce.

4. In the case both parents have the same birthdate, the primary carrier is the plan of the parent whose first initial comes first in the alphabet.

5. If you are separated or divorced, and have full custody of any dependent children, the plan that will pay benefits for your children will be determined in the following order:
• The plan of the parent with custody of the child.
• The plan of the spouse of the parent with custody of the child.
• The plan of the parent without custody of the child.
• The plan of the spouse of the parent without custody of the child.

6. Any remaining balances can be submitted to a Health Care Spending Account, if available.

Please feel free to contact us with questions at info@truebenefits.ca or 604.872.2866.

Rachel von Sturmer, BA, GBA, CFP

www.truebenefits.ca