Volume 31, No. 1		Editor: Bob Rupert		July, 2000.





	  	Employer Error in EHC Benefit Premium Adjustment



In April, the employer asked CUASA to inform the membership that the

Extended Health Care premiums would be increasing.  In response to this

routine request, CUASA circulated a Communiqui (Vol.30,#4) reporting that

Clarica would be passing on a 30% increase in premiums due to"excessive

use of plan". The employer provided CUASA with the following figures for

premium payments in accordance with Article 40.13(a):



	Current Premium			 Premium Effective May Paycheque

    Single	    Family		  Single		  Family

$ 4.70/month	$16.07/month		$ 6.10/month	       $20.85/month



However, in June, the employer detected a calculation error. As the

incorrect amounts had already been deducted in May due to the employer's

error being processed, the employer decided not to make the correction

retroactive.  The latest figures provided by the employer to CUASA appear

below.  The June pay cheque reflected the corrected rates (inclusive of

tax) as follows:



		Premium for EHC Effective June 2000 Paycheque

		   Single 			   Family

employee pays: 	$ 9.13/month 			$31.27/month

employer pays:  $28.95/month			$99.05/month



To summarize, the employee's share has been increased as follows:

	April $4.70 single/$16.07 family

	May $6.10 single/$20.85 family

	June $9.13 single/$31.27 family.



If you have any questions about this calculation please contact Cathy

Koebel, Payroll Specialist at 8593.