hbt business update · 2012-07-05 · hbt business update july 3, 2012 jan k. grude, ceo sarah...
TRANSCRIPT
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HBT Business Update
July 3, 2012
Jan K. Grude, CEO
Sarah Hoffman, CFO
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Agenda
• 2012 Priorities
• 2013 Contribution Rates
• Benefit Cost Drivers
• Finance Update
• Exit Levy Status
• Benefits Administration Notices
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Key Priorities for 2012
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• Bargaining & Benefits Costs• Client and Stakeholder support
• PBC Enrolment & Billing Systems – Healthcare & Community Employers 2012-2013
• Client Satisfaction Survey• LTD claims adjudication & payment services provided by
GWL
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HBT Rate Setting
• Closely resembles insurance industry practice
– Life/AD&D............Broad Across Trust
– EHC/Dental/LTD...Experience and Demographic Adjustments
• Increased stability over time protect against large changes due to LTD experience and investment performance fluctuations
• Limited subsidies; while respecting insurance principles of pooling
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Benefits Cost Drivers
• Plan Design
• Benefits Utilization
• LTD Management – Early Intervention
– HBT Rehabilitation Services
– Collaboration with GWL
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2013 Contribution Rates
Early Guidance:
• Continued stability in LTD experience
• Extended health and dental experience has been better than expected
• 2013 Rates available in Fall 2012
• Rates supported by additional information on
benefits utilization.
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Financial Update
July 3, 2012
Sarah HoffmanChief Financial Officer
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HBT 2011 Annual Report
• Financials Audited by KPMG
• Reporting Changes
• HBT Administrative Costs
• Actuarial Report
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Finance Update
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Finance Update
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Decreasing Deficit Position
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Funded Position Factors
1. LTD Active Claims
2. Investment Performance
3. Contribution Rates
4. Deficit Recovery & Exit Levy Payments
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Four Key Factors
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Active LTD Claims by Pool 2006-2011(as at December 31st)
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Investment Performance 2011
• Return Expectation is set at 6% annualized
• Actual returns ~ 3.3% for 2011 net of fees.
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bcIMC INVESTMENT UPDATE
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Deficit Recovery
– 2009 funding policy introduction of assumptions to provide support, increased stability over time via incorporation of margins
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Exit Levy Update
– Current members are not paying for exit levies owed to the Trust.
– HBT has received payments recently and also collected payments.
– Payment plans are available to pay levy over time.
– Returning Members - appropriate payment provisions in place for exit levy owed and deficit recovery
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Other News & Update
• Bill C-13 CPP & EI
• Group Life & AD& D
•MSP
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Q&A
•Questions?
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