Changes to Insurance Prior to Retirement

Changes to the Class of Life insurance or Units of Dependents Insurance can be made prior to retirement. Applications for insurance changes prior to retirement are available from your employer.

Retirement Insurance

If you were insured on your retirement date and immediately commence your pension, Life insurance, and where applicable Dependents insurance, automatically continue at reduced amounts, and premiums would automatically be deducted from your pension.

You can elect to not pay premiums at retirement or anytime thereafter. If you make this election for Life Insurance, coverage would reduce to $6,000. If you make this election for Dependents Insurance, coverage would stop entirely. If you elect to stop paying premiums, you are not permitted to increase your insurance at a later date.

Conversion

Conversion allows an individual to continue insurance privately, at private rates, without providing evidence of insurability. Any amount up to the reduction that occurs because of retirement can be converted to a private policy within 60 days of ceasing to be an employee. Only the initial decrease in Life Insurance can be converted. Any decreases in Dependents Insurance, where applicable, can be converted as they occur. For information on converting insurance or to apply for conversion, please contact Deborah Capek at 204-297-6224 or deborah@capekfinancial.ca.

Waiver of Premium

If a member ceases to be an employee due to ill health or injury before age 65 or is in receipt of a disability pension, he or she may apply for a waiver of premium. If the Insurance Company considers the member totally and permanently disabled, no premium payments are required and Life Insurance will continue in force as if the member had remained employed until the earlier of recovery, death or age 65. If a person ceases to be eligible for a waiver of premium and is receiving a pension, retirement insurance provisions would apply. Application for a waiver of premium must be made within 365 days after a member ceases to be an employee. Members can apply through the employer if still employed, or through the Board if no longer employed.

Assumptions Used for Insurance Estimate

Information provided by your employer after you retire will be used to determine any insurance amounts. Estimated insurance amounts usually assume your salary, class of insurance, and units if applicable, remain unchanged from the end of the previous year. This will provide a conservative estimate unless you elect to reduce your insurance or you become ineligible. There is usually a difference between estimated and actual insurance. As the difference between the date the estimate is prepared and your retirement date gets smaller, so typically does the difference between the estimate and the actual amounts. We are unable to calculate actual insurance until after an employee has retired. We recommend that you use a slightly conservative estimate for your retirement planning.

You may want to contact your employer to determine your coverage and confirm your beneficiary designation as you approach retirement.

Employers Excluded from Policy

Employees of the Manitoba Arts Council, Manitoba Film and Sound Recording Development Corporation (effective as of the date of the Order in Council approving this exclusion), Sports Manitoba Inc., and Manitoba Liquor and Lotteries (effective August 1, 2014), as well as those employees covered by a collective agreement between the government of Manitoba and the Canadian Union of Public Employees (C.U.P.E.) Local 2153, are excluded under the Public Service Group Insurance policies administered by the Board.

Employees of these employers may want to check with their payroll or Human Resources department to see if alternate insurance coverage is available.