 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 % of take- home pay) – teacher paid  If you negotiate a Board paid plan, the benefit is 70% and taxable

Disability Start 80 working days Sick Leave 100% of take- home pay EI 32% of pay (taxable) DBP 80% of take- home pay 10 working days * Assuming member qualifies for EI and has 10 days sick leave

Disability Start 80 days Sick Leave 100% of take- home pay STD % of take-home pay DBP 80% of take- home pay 10 days

2 nd 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 PlanWith STD Plan Recovery Days60 Sick Days available 34 Take home pay received for 5 weeks, based on $55000 salary $485/week x 5 = $2425 (maximum allowed by EI) x 60% x 25/200 = $4125 TaxableYesNo PensionableNoYes

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 PlanWith STD Plan Recovery Days40 Sick Days available 20 Days 21-40; (20 working days) EI 55% of maximum insurable earnings Covered by 60% of insurable earnings Take home pay received for 4 weeks, based on $78000 salary $485/week x 4 = $1940 (maximum allowed by EI) x 60% x 20/200 = $4680 TaxableYesNo PensionableNoYes

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 PlanWith STD Plan Recovery Days100 Sick Days available 20 Days 21-80; days (60 working days) EI 55% of maximum insurable earnings Covered by 60% of insurable earnings Days 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) x 60% x 60/200 = $14040 Earnings TaxableYesNo PensionableNoYes

 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 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 participate 3. Deduction of premiums 4. Refund of additional EI Rebate MTS 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

Contact info: Glen Anderson Or toll free at: Or