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

Protection for Canadian Policyholders

Did you know that all life insurance companies authorized to sell policies in Canada are required by the federal, provincial and territorial regulators to become members of Assuris?

If a customer holds a policy from a member company, the policy benefits are protected by Assuris. In the case that the insurer you have bought a policy from fails, Assuris or another carrier will step in to honour your coverage. 

The complete member list is available on their web site, along with more information on the protection offered: www.assuris.ca.

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.

BC Announces New Prescribing Regulations

Provinces across the country are enhancing the scope of practice for various healthcare professionals. In keeping with this, BC has recently announced new regulations for optometrists and naturopaths.

The enhanced scope of practice for BC optometrists means practitioners can now:

• Diagnose and treat common eye diseases
• Prescribe, dispense and administer topic prescription medications
• Remove a superficial foreign body from a patient’s eye

The enhanced scope of practice for BC naturopathic physicians means practitioners with additional training will be able to prescribe medication as appropriate in their primary care practices.

More information is available here.

Rachel von Sturmer, Benefits Specialist

www.truebenefits.ca

Alberta Delisting Chiro Coverage

Just announced in their Spring 2009 budget, Alberta will be discontinuing Chiropractic coverage under their Provincial Health Plan. Currently, there is a $200 annual benefit for each resident. The change is expected to take effect this Summer.

Rachel von Sturmer, BA, GBA, CFP

www.truebenefits.ca

New Powers for BC Pharmacists

Effective January 1, 2009, in an agreement between the Province of BC and the BC pharmacist Association, pharmacists (with customer consent) now have the authority to adapt prescriptions including:

• changing dosage, formulation, or regimen
• renewing a prescription
• making drug substitutions within a therapeutic class

Pharmacy clinical service fees associated with adapting prescriptions will be paid by BC PharmaCare.

These changes bring BC in line with AB, MB, QC, NB, and NS. In NT, ON, and PEI similar legislation is currently under review.

Rachel von Sturmer, BA, GBA, CFP

www.truebenefits.ca

2009 Canadian Government Benefits Summary

Click here for a handy summary of the 2009 CPP, QPP, and EI coverages, and costs.

Rachel von Sturmer, Employee Benefits Specialist

www.truebenefits.ca

CLHIA Updates Coordination of Benefits

The Canadian Life and Health Insurance Association (CLHIA) has recently updated their industry standard coordination of benefits information.

Known in the group insurance industry as 'COB', these are the guidelines that let plan members know where to submit claims first when they're covered by more than one plan.

The basic rules are:

• Submit to your employer plan first, any remainder can go to a spousal plan, and then to a Health Spending Account or Private Health Spending Plan.

• If you have children who are covered by two parental plans, the parent born earliest in the calendar year will first submit those claims (for example, Joe is born in January and Jane in July. Joe will send their son's claims to his group plan first, and Jane can submit any remainder to her plan).

There are many more guidelines that deal with specific and complicated situations, where several carriers are involved, or there is an out of country claim. These provisions will be adopted by all insurers January 1st of 2009 and incorporated into claims adjudication processes.

An overview of the changes is available here.

Rachel von Sturmer, BA, GBA, CFP, Benefits Specialist

www.truebenefits.ca

2009 EI Maximum Increase

Effective in 2009, the maximum insurable earnings under EI will increase from $41,100 to $43,200. For employers that offer Short Term Disability insurance (also known as Weekly Indemnity), be aware that the maximum weekly benefit has increased from $435 to $447.

This increase will adjust your plan volumes automatically if the contract is designed to match the EI maximum; however, if your plan has a static amount, it may be time to review the coverage structure.

If you have any questions, please contact True Benefits at 604.872.2866 or info@truebenefits.ca.

Rachel von Sturmer, BA, GBA, CFP, Employee Benefits Specialist

www.truebenefits.ca