Volume 32, No. 3 Editor: Bob Rupert April 19, 2002. Benefit Plans, Premium Increases and Demutualization Funds A year ago, (Vol.31, No.6) CUASA reported on a number of benefit-related issues including premium increases. CUASA filed a grievance seeking a greater share of funds provided to the employer by Met Life, the carrier of our Long Term Disability (LTD) and Life Insurance plans until February 1999. In simple terms, demutualization meant that Met Life owed its clients the equity they had established in the company. Last April we also explained that our LTD plan had been carrying a "surplus" of $515,000 based on low usage of the plan in 1995-96. Since 1996, however, the cost of claims has outstripped premiums paid. Last year, faced with a huge premium increase, CUASA decided to use the "surplus" to provide a one year subsidy against about 94% of the increase in your LTD premiums. This "surplus" will be depleted by May 1, 2002 and the subsidy will end. The employer accepted the claim set out in our grievance and agreement was reached on the division of the "demutualization" funds based on premium cost-sharing for the period 1996-98. Following legal advice, Steering Committee decided to use the LTD demutualization proceeds to partially subsidize your LTD premiums until around January 2003 (January end date is based on assumptions about net new hires). While this is good news for the short term, be prepared to absorb the full 139% increase in LTD premiums that was due in May 2001 by the January, 2003 paycheque. We are also using the proceeds from demutualization of the Life Insurance plan to lighten your premiums. Since no life insurance premium increase is in the works, you will see a premium holiday in this plan for at least one month. Premium increases, based on the cost sharing formula in the collective agreement, of 22% for Dental and 12% for Extended Health Care (EHC) will be applied May 30. Your May paycheque will also include the negotiated 2.5% scale increase. To summarize: Your LTD premium will increase in May 2002 and again around January 2003 (premium rates increase to 1.365% in May and to 1.922% around January) Your EHC premiums will increase by 12% effective May 30 Your Dental premiums will increase by 22% effective May 30 You will have a Life Insurance premium holiday Your scale increase of 2.5% will be added to your cheque effective May 30. The Career Development Increment (where applicable) is processed on the June paycheque so 2/12 of CDI, rather than 1/12, will be paid in June. CUASA SCHOLARSHIP AWARDED The 2001/2002 CUASA Scholarship has been awarded to Mrs. Marcie Penner-Wilger, a third year student with a grade point average of 12.0, registered in the Bachelor of Arts Cognitive Science program. In addition, several bursaries were provided through the CUASA bursary endowment. HOUSING LISTINGS From now on housing listings are only available on to the CUASA website. You may access them by logging on at http://www.carleton.ca/cuasa/. Once at the CUASA homepage, click on housing information on the navigation bar to the left of the page. Then click on latest housing listings (second item from top). Should you wish to place a housing listing with CUASA, please drop by the CUASA office with the insertion or email it to the attention of Deborah at deborah_jackson@carleton.ca or via fax to 613-520-4426. CUASA cannot take housing insertions over the telephone.