THE MANITOBA TEACHERS SOCIETY SHORT TERM DISABILITY PLAN

THE MANITOBA TEACHERS' SOCIETY SHORT TERM DISABILITY PLAN

Agenda Ø Ø Ø What is the Purpose? How Does it Work? How Do You Get It?

What Is The Purpose? 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

What Is The Purpose? 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 Is The Purpose? 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

What is the purpose? STD Plan replaces EI sickness benefit Pays 60% of earnings, no maximum income, tax-free (approximately 80 - 85% of takehome pay) – teacher paid If you negotiate a Board paid plan, the benefit is 70% and taxable

What is the purpose? Sick Leave DBP 100% of takehome pay 80% of takehome pay EI 32% of pay (taxable) Disability Start 10 working days 80 working days * Assuming member qualifies for EI and has 10 days sick leave

What is the purpose? Sick Leave 100% of takehome pay DBP STD 80 - 85% of take-home pay Disability Start 10 days 80% of takehome pay 80 days

Meet Patrick M. • 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

• 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

Recovery Days Sick Days available Take home pay received for 5 weeks, based on $55000 salary Taxable Pensionable Without STD Plan With STD Plan 60 34 $485/week x 55000 x 60% x 25/200 = 5 = $2425 (maximum $4125 allowed by EI) Yes No No Yes

Meet Dan • 50 years old; 25 -year veteran; B. 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

Recovery Days Sick Days available Days 21 -40; (20 working days) Take home pay received for 4 weeks, based on $78000 salary Taxable Pensionable Without STD Plan With STD Plan 40 20 EI coverage @ 55% of maximum insurable earnings $485/week x 4 = $1940 (maximum allowed by EI) Covered by STD @ 60% of insurable earnings 78000 x 60% x 20/200 = $4680 Yes No No Yes

• 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 Meet Alanna T.

Without STD Plan Recovery Days Sick Days available 100 20 Days 21 -80; days EI coverage @ 55% (60 working days) of maximum insurable earnings Days 80 -100 LTD @ 60% of insurable earnings With STD Plan 100 20 Covered by STD @ 60% of insurable earnings LTD @ 60% of insurable earnings Take home pay $485/week x 12 = 78000 x 60% x between sick days 60/200 = $5820 (maximum and LTD, 12 allowed by EI) $14040 weeks, $78000 salary Earnings Taxable Yes No Pensionable No Yes

How Does It Work? 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

How Does it Work? 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% 12 premium – 0. 184% 11 premium 0. 17%

How Does it Work? EI Premium Rebate Employer share 7/12 ths 0 Sick leave rebate 28% Employee share 5/12 ths Full rebate 40%

How Does it Work? EI Premium Rebate EI sick leave rebate – already negotiated between Division/Association Division may legally retain 7/12 ths 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

Bargaining Short Term Disability Plans Most Common EI Agreements 0 Negotiated Employee share 12/12 ths Sick Leave Rebate 28% Full Rebate 40%

How Do You Get It? 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

How Do You Get It 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.

Bargaining Short Term Disability Plans Some Recent EI Agreements Employer share 2/12 ths 0 Sick Leave Rebate 2/12 ths = $. 74/month/teacher 28% Employee share 10/12 ths Full Rebate 40%

? Questions? Contact info: Glen Anderson 204 831 3052 Or toll free at: 866 494 5747 Or at: ganderson@mbteach. org