what is the purpose? how does it work? how do you get it?
TRANSCRIPT
What is the Purpose? How Does it Work? How Do You Get It?
To provide income to disabled teachers who run out of sick leave before the Disability Benefit Plan (DBP) starts
Payments start when sick leave ends and stop when DBP starts, so there is no gap
Designed specifically for teachers
Who needs it?◦ Those who are chronically ill and regularly access sick
leave◦ Those who change divisions◦ New teachers, especially those who have not qualified for
EI Approximately 25% of new DBP claimants do not
have 80 days sick leave◦ Many others not claiming DBP do not have enough sick
leave STD claims statistics show that claims fall fairly
evenly at all ages 85 STD claims were paid in 2011 in 12 Associations Average of 1 claim/year for every 70 teachers
What are your alternate sources of income? ◦ EI sickness benefits – inadequate:
New teachers may not qualify (need to work 800 hours)
2 week waiting period Maximum insured earnings $45,900/year Taxable benefit of 55% of earnings
those earning $45,900 or more get less than 55% teacher earning $75,000 gets only $485 weekly or 32%
taxable benefit
◦ Savings, loans
STD Plan replaces EI sickness benefit Pays 60% of earnings, no maximum income,
tax-free (approximately 80 - 85% of take-home pay) – teacher paid
If you negotiate a Board paid plan, the benefit is 70% and taxable
Disability Income – No STD Plan
Disability Start
80 working
days
Sick Leave
100% oftake-homepay
EI
32% of pay (taxable)
DBP
80% of take-homepay
10 working
days * Assuming member qualifies for EI and has 10 days sick leave
Disability Income – No STD Plan
Disability Income – With STD Plan
Disability Start
80 days
Sick Leave
100% oftake-homepay
STD
80 - 85% of take-home pay
DBP
80% of take-homepay
10 days
• 2nd year Senior High Math teacher, limited term contract• 34 banked sick leave
days• assistant high school
hockey coach, Math club leader• single, living alone,
active social life, excellent health
Meet Patrick M.
•monthly payments: rent, student loans, car loan
•hockey injury beginning of October at practice
•several leg fractures, reconstructive surgery needed
•recovery time: 12 weeks, 60 working days
Without STD Plan
With STD Plan
Recovery Days 60 60Sick Days available
34 34
Take home pay received for 5 weeks, based on $55000 salary
$485/week x 5 = $2425(maximum allowed by EI)
55000 x 60% x 25/200 = $4125
Taxable Yes No
Pensionable No Yes
Meet Dan B.
•50 years old; 25-year veteran; general contract
•married, two children in university; mortgage and car payments
•used up sick leave last year due to car accident; 20 days sick leave available
•has a massive heart attack; needs triple by-pass surgery
•recovery time: 8 weeks; 40 working days
Without STD Plan
With STD Plan
Recovery Days 40 40
Sick Days available
20 20
Days 21-40; (20 working days)
EI coverage @ 55% of maximum insurable earnings
Covered by STD @ 60% of insurable earnings
Take home pay received for 4 weeks, based on $78000 salary
$485/week x 4 = $1940(maximum allowed by EI)
78000 x 60% x 20/200 = $4680
Taxable Yes No
Pensionable No Yes
Meet Alanna T.
•general contract teacher, 10 years experience•first year in division•married with one child; newly pregnant with second child; 20 sick days available•complications with pregnancy; must spend 5 months on bed rest•mortgage, day care expenses, car loans
Without STD Plan
With STD Plan
Recovery Days 100 100
Sick Days available
20 20
Days 21-80; days(60 working days)
EI coverage @ 55% of maximum insurable earnings
Covered by STD @ 60% of insurable earnings
Days 80-100 LTD @ 60% of insurable earnings
LTD @ 60% of insurable earnings
Take home pay between sick days and LTD, 12 weeks, $78000 salary
$485/week x 12 =
$5820 (maximum allowed by EI)
78000 x 60% x 60/200 =
$14040
Earnings Taxable Yes No
Pensionable No Yes
All teachers must join (except substitutes) Pricing is based on the aggregate claims
experience of the Plan and not the Association
Provincial Plan has lower expenses and rates than stand alone plans – rates reviewed in April, for September 1 renewal
Costs (Sept 2012) 0.184% of pay $75,000 salary = $11.50/month EI rebate offsets part of the cost – typically
paid to local Association to offset dues Payroll deduction
10 premium – 0.178% 11 premium 0.17%12 premium – 0.184%
0 28% 40%Sick leave rebate Full rebate
Employer share
7/12ths
Employee share
5/12ths
EI Premium Rebate
EI Premium Rebate EI sick leave rebate – already negotiated
between Division/Association Division may legally retain 7/12ths of additional
EI rebate, balance to teacher Negotiate for the employer share of the
additional rebate also – you pay the full premium Additional rebate (approximate)
◦ Employer share $2.58◦ Teacher share $1.84
$4.42/teacher/month
Most Common EI Agreements
0 28%
40%Full Rebate
Sick Leave Rebate
Negotiated Employee share 12/12ths
Decide whether your Association wants the plan◦ MTS can assist you
Bargain administration/EI rebate ownership with Division◦ Usually part of Collective Bargaining◦ Contact MTS staff officer for assistance◦ Letter of agreement or in CA
Collective Agreement should reflect four points:
1. Division will administer the short term disability plan
2. Eligibility to participate3. Deduction of premiums4. Refund of additional EI RebateMTS will supply the language.
Some Recent EI Agreements
0 28%
40%Full Rebate
Sick Leave Rebate
Employer share 2/12ths
Employee share
10/12ths
2/12ths = $.74/month/teacher
