Most of us, on retirement from the
CAF, opted into the voluntary Public
Service Health Care Plan (PSHCP) as a
means to mitigate a variety of increasing
health care costs associated with the
aging process. The Harper Government
has decided we are not paying enough
for this insurance so they are about to
double our monthly premium.
We CFSA annuitants and pensioners
do not negotiate directly with our former
employer (represented by Treasury
Board (TB)) for retirement benefits such
as our health and dental plans. Rather,
these benefits are negotiated between
TB and the National Joint Council
(NJC) of the Public Service of Canada,
with input from retirees from its various
trade unions/associations who represent
the largest number of federal pensioners.
Our CAF (and RCMP) retiree benefits
generally reflect agreements that have
been negotiated by the NJC through its
collective bargaining process.
There are two broad levels of
PSHCP coverage: Supplementary, for
the majority of us who are covered by
provincial health care plans; and, Com-
prehensive for those who reside outside
of Canada or are otherwise not covered
by a provincial plan. Most AFP/AAC
members reside in Canada and elected
the Supplementary plan thus we will
limit this discussion to that component
of the plan.
The premium that you have been
paying is based on the ‘level’ of ‘hospi-
tal benefit’ that you elected on retire-
ment. Members and their dependants
are covered for hospital charges in ex-
cess of standard ward charges up to
specified limits. There are three levels
of coverage available to members:
• Level I provides for a maximum
payment of $60 per day;
• Level II provides for a maxi-
mum payment of $140 per day; and
• Level III provides for a maxi-
mum payment of $220 per day.
The Harper Government, in its lat-
est round of collective bargaining with
the NJC agents, has forced employees
to accept a 50/50 split in our health
care premiums – a move that will even-
tually double the monthly premium
that each of us pays. The new rates are
to be phased in over four years begin-
ning 1 April 2015 by the percentages
shown below until the 50/50 is
achieved on 1 April 2018:
3
ARMED FORCES PENSIONERS
’
/ANNUITANTS
’
ASSOCIATION OF CANADA
Public Service Health Care Plan
(PSHCP) Premiums ~
Why all the fuss?
As near as we can determine, there
will be no increase of premiums in
2014.
The agreement governing our Pen-
sioners’ Dental Services Plan (PDSP)
is similar to the Health Care Plan: we
individual pensioners pay 40% of the
monthly premium and our old em-
ployer contributes the balance. With
the PSHCP premiums rising to 50/50,
you and expect the PDSP premiums to
be next. The existing government,
which claims to be such a strong sup-
porter of the CAF, is now abandoning
us - both as veterans and as pensioners!
These new premiums will represent a
major increase in the cost of living for
many of our AFP/AAC members.
AFP/AAC is contemplating legal
action for what is yet another breach of
faith by the Government of Canada; we
will keep you posted.
Effective Date
Retired Member Government of Canada
April 1, 2015
31.25%
68.75%
April 1, 2016
37.50%
62.50%
April 1, 2017
43.75%
56.25%
April 1, 2018
50.00%
50.00%
Retired Member Monthly Contribution Cost Sharing Percentages
