OASBO Workshop February 25, Provincial Benefits Trust Update

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Millicent Rose
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1 OASBO Workshop February 25, 2016 Provincial Benefits Trust Update

2 Provincial Benefits Trusts - Background In the previous round of bargaining, a commitment to exploring opportunities for transforming health, life and dental benefits in the education sector Early in 2014, Morneau Sheppell prepared a briefing note on provincial benefit plan options Provincial Benefits Trusts Options: Health & Welfare Trusts (HWT) Employee Life & Health Trusts (ELHT) Purpose of HWT and ELHT: Benefits under a group sickness or accident insurance plan, a group term life insurance policy or a private health services plan 2

3 Benefits Transformation The first round of bargaining under the School Boards Collective Bargaining Act, 2014 (SBCBA), has concluded. Included in these agreements is the transformation and streamlining of health, life and dental benefit plans in Ontario s education. With these agreements, all individual school board benefit plans will be consolidated into the following 5 education sector ELHTs : AEFO, Association des enseignantes et enseignants franco-ontariens ETFO, Elementary Teachers Federation of Ontario (including ETFO education workers) OECTA, Ontario English Catholic Teachers Association OSSTF, Ontario Secondary Schools Teacher Federation (including OSSTF education workers) CUPE, Canadian Union of Public Employees 2 groups (EWAO and OCEW) haven t yet decided which Trust they will join and are in ongoing dialogue with the 5 existing Trusts 3

4 Education Sector ELHTs Education sector employee & retiree benefits; limited to health and dental benefits and life insurance Trust Establishment: September 1, August 31, 2017 Establishment of Trusts Trusts Established by Sept. 1, 2016 Trusts Established no later than Feb. 1, 2017 Teachers Federations OSSTF, ETFO, OECTA & AEFO - Education Worker Unions - CUPE Participation Dates in Trusts Participation Date Sept. 1, 2016 to Aug. 31, 2017 Participation Date Feb. 1, 2017 to Aug. 31, 2017 Teachers Federations OSSTF, ETFO, OECTA AEFO* Education Worker Unions OSSTF EW, ETFO EW & OCEW CUPE & EWAO Note: AEFO have set February 1, 2017 as the participation date for all of their benefit plans into the AEFO Trust. Joint governance structure with a Board of Trustees comprised of 9 voting members: 5 from the employee reps (including 1 independent expert) 4 from the employer reps (including 1 independent expert) 4

5 Education Sector ELHTs 1 common shared services office Ontario Teachers Insurance Plan Responsible for the services to support the administration of benefits for the members, Assist in the delivery of benefits on a sustainable, efficient and cost effective basis 5 transition committees One for each ELHT being created Comprised of the Federations/Unions, Council of Trustees Association & Crown Purpose : Address issues arising from the creation of the ELHTs 1 central coordination committee To address all matters common to the development of the 5 Trusts Start-up costs: 15% Claims Fluctuation Reserve & 4.15% for start-up costs 5

6 Education Sector ELHTs Funding is based on the actual cost per year for benefits (i.e. claims, premiums, administration, tax, risk or profit charges, pool charges, etc.) as reported on the insurance carrier s most recent yearly statement for the year ending no later than August 31, Bargaining Group Funding Terms of ELHT AEFO / OSSTF / OECTA CUPE / EWAO / OCEW actual benefits costs 2015:SB38 +4% (15/16) +4% (16/17) +$300/FTE (16/17) + Elimination of co-pay (does not apply to OECTA) ETFO / ETFO-EW $5,100 per FTE locked into 2020 OSSTF-EW $5,075 per FTE Green = school board funding Purple = Ministry of Education funding Red = school board & Ministry of Education funding 6

7 Implementation Establish central coordinating committee December 1, 2015 Establish transition committees January 31, :SB38 Benefits & Costing Template February 5, :SB38 Retiree Template February 12, 2016 OTIP outreach to school boards March 31, 2016 Specified audit procedures May 15, 2016 Final concurrence on $/FTE June 30, 2016 Participation dates communicated June 30, 2016 Trust participation agreements September 1, 2016 School boards transition to Trusts Sept 2016 Aug 2017 *Does not include timelines related to PVP and non-union groups 7

8 Questions?? 8

Ontario Collective Bargaining Agreement

Ontario Collective Bargaining Agreement Expirations 2017 Ministry of Labour Dispute Resolution Services Collective Bargaining Information Services ISSN: 1705-7671 Table of Contents Foreword... 3 Executive