Insurance
Insurance
Your employer holds your insurance information throughout active employment. To change your coverage or beneficiary, contact your payroll office.
CSSB administers your insurance throughout retirement. To decrease your coverage or change your beneficiary, contact CSSB.
Canada Life is the insurance company. They resolve and pay claims for active and retired members.
Group Life
For pension plan members, Group Life insurance is compulsory. Your coverage starts on the first day of your first full pay period after becoming eligible. The cost is deducted from your pay.
This insurance provides a tax-free payment to your chosen beneficiary (or beneficiaries) if you pass away.
The plan has five coverage levels, each based on a multiple of your annual salary.
Dependent Life
Dependent Life Insurance provides financial support if an eligible dependent passes away. The tax-free payment goes to you as the insured member.
You can choose from 0 to 4 units of coverage. The amount paid depends on the number of units you select.
- Spouses are covered until age 70
- Unmarried children are covered until age 22
90 Days: You have 90 days to add new dependents to your insurance once you are eligible or when you get a new dependent. This includes events like the birth or adoption of a child or getting married.
Accidental Death and Disablement (AD&D)
If you’re enrolled in the Life Insurance plan, you’re automatically enrolled in the AD&D plan.
This insurance is payable to you (or your estate) if you are injured or die in an accident.
There are three choices for coverage. They align with the Group Life Classes.
| Life Insurance class | Maximum insurance |
|---|---|
| 1 | $25,000 |
| 2 | $50,000 |
| 3, 4, or 5 | $75,000 |
This plan does not insure retired employees.
Life Insurance Advance Payment Program
The Group Life Insurance Program is designed to provide a benefit to your designated beneficiary or beneficiaries after you die. However, in certain cases, you may be eligible to receive an advance payment if you have a life expectancy of less than 24 months, as determined by the Life Assurance Company’s medical team.
Amount of advance payment available
- You can request an advance of up to $25,000 or 50% of your total life insurance coverage (whichever is lower). A smaller amount can be requested if preferred.
- If your insurance is scheduled to reduce due to age within two years of the application date, the reduced amount will be used to determine your eligible advance.
Effects on Life Insurance
- The final life insurance payout to your beneficiary or beneficiaries will be reduced by the amount of the advance.
- The advance is treated as a loan, accruing interest at prime +1%, from the date of payment until either the insurance claim is paid or the amount is repaid.
How to apply
- Contact CSSB for the application
- Send completed forms to our office
Pension benefit
If you are terminally ill, it’s important to address your pension and insurance benefits.
Disability – Waiver of Contribution
If you leave your job or retire due to a disability (ill health or injury), you can apply to continue your Life Insurance coverage without making further payments.
How to apply
- Contact your employer or CSSB
- You must apply within 365 days of whichever happens first:
- Your retirement
- The start of your Long Term Disability benefits
- The end of your employment due to disability
Eligibility and approval
The insurance company must determine that you are totally and permanently disabled. You may need to provide ongoing proof of disability, as requested.
Coverage Details
- If approved, your Life Insurance stays active as if you were still employed.
- Coverage continues until the earliest of:
- Recovery
- Death
- Age 65
If you are still on a Waiver of Contributions at age 65, retirement coverage rules will apply (see Coverage Changes into Retirement).
Late Career Members – Insurance Considerations
As you approach retirement, it’s important to review your insurance coverage.
Continuing coverage in retirement
- Group Life and Dependent Life Insurance can only continue if:
- You have coverage at the time of retirement, and
- You start your pension immediately at retirement
Making changes before retirement
- Changes to your Life Insurance Class or Dependent Life Insurance Units must be made before you retire.
NOTE: Application forms for insurance changes are available through your employer.
Termination of Insurance
If you don’t start a monthly pension, your insurance will automatically end on the last day of the pay period you contributed to after leaving employment.
If you pass away within 60 days of your insurance ending, the death benefit will be based on the amount of coverage you had immediately before ending employment.
Decision before retirement
Before retiring, you must choose one of these options for your insurance coverage:
- Continue your coverage – Your insurance will remain based on your salary and age into retirement.
- Reduce your coverage – You can lower your coverage to $6,000, with no premiums to pay.
If you continue your insurance into retirement
At age 73, premium payments stop and a fixed $6,000 coverage remains in effect.
Your coverage will reduce based on your age, with premiums automatically deducted from your CSSB pension.
CSSB will provide a schedule showing your insurance amounts for each year up to age 73. You can also view this information in Online Services if you are registered.
Update your insurance beneficiary
IfYou can update your group life insurance beneficiary at any time.
Where to submit the form:
- If you are retired, submit the form to CSSB
- If you are employed, submit the form to your employer
Conversion
Conversion allows you to continue your insurance privately at private rates without providing medical evidence.
In other words, you change your group insurance into a personal policy after your coverage ends. You can keep coverage by paying the full cost yourself—without needing a medical exam.
How it works
- You can convert some or all your insurance coverage to an individual policy within 60 days of ending employment.
- If you are retiring, you can convert the difference between your pre-retirement insurance and your reduced retirement coverage (or a lesser amount) within 60 days.
- Age-related reductions in coverage can’t be converted.
How to convert your insurance
- Apply and pay the first premium within 60 days of your retirement or end of employment.Â
- To get a quote, contact Deborah Capek:
204.297.6224
deborah@capekfinancial.ca
Retired members – insurance considerations
Continuing Group Life and Dependent Insurance in retirement
Group Life and Dependent Insurance only continues if:
- You have coverage at retirement, and
- You immediately start your pension
Coverage options at retirement:
- Continue coverage: Your insurance follows a schedule based on your age, with gradual reductions over time.
- Reduce coverage to $6,000: This option provides fixed coverage with no premium payments.
Option to reduce coverage at no cost
After retirement, you can stop paying premiums at any time.
- For Life Insurance – Your coverage will reduce to $6,000.
- For Dependent Life Insurance – Your coverage will end.
Important: Once you stop paying premiums, you can’t increase your insurance later.
Insurance premiums on your first pension payments
While your pension is being paid on an interim basis, insurance premiums will not be deducted. However, this does not affect your eligibility for coverage.
Once your pension is finalized and your employer confirms your eligibility, monthly premiums will be deducted from your pension.
Finalizing your pension typically takes three to six months after retirement.
One-time retroactive deduction
When deductions begin, there will be a one-time retroactive deduction covering:
- The period from when your employee coverage ended to the current month
- A pre-payment for the following month
Coverage changes in retirement
You can only change your insurance coverage before retirement.
Once retired, your group life insurance reduces as you age.
Reduction schedule
| Age | % of employee pre-age 65 insurance |
|---|---|
| Under 55 | 100% |
| 55 to 59 | 75% |
| 60 to 64 | 60% |
| 65 to 69 | 40% |
| 70 to 72 | 15% |
| 73 and over | $6,000 paid-up policy |
Example: If an employee retires with a salary of $35,000 and has Class 5 insurance, their coverage at age 65 would be: $35,000 × 5 × 40% = $70,000 of insurance.
Dependent life insurance in retirement
Your Dependent Life Insurance coverage continues into retirement but with specific limits.
Coverage amounts by unit
| Number of units | Spouse | Each child | Monthly contribution |
|---|---|---|---|
| 1 | $8,750 | $1,750 | $3.48 |
| 2 | $17,500 | $3,500 | $6.96 |
| 3 | $26,250 | $5,250 | $10.44 |
| 4 | $35,000 | $7,000 | $13.92 |
Important notes
- Spouse coverage ends when they turn 70
- Children are covered until age 22, with some exclusions
- Once cancelled, you cannot reapply
Frequently
Asked
Questions
Please contact CSSB to report a member’s death.
Call: 204.946.3200 or toll free (in Canada) 1.800.432.5134
Complete the Death Reporting Form and sent it by:
Email: askus@cssb.mb.ca
Fax: 204.945.0237
Mail: CSSB, 1200-444 St Mary Avenue, Winnipeg, MB R3C 3T1
You can decrease your Group Life / Dependent insurance at any time. To increase your life or dependent insurance class involves completing a medical questionnaire and you must pay for the cost. Contact your employer for the correct forms.
Your employer can help you choose if you are going to continue or waive your Life Insurance coverage. This is decided before you take your leave of absence.
You can withdraw from your Life Insurance plan early if you have a terminal illness. You can withdraw either 50% of your Life Insurance or $25,000, whichever is less.
If you have been diagnosed with a terminal illness, it’s important that you also get information about your pension benefit.
Please contact CSSB for:
- The application package to withdraw
- To discuss your pension benefit
An insured active or retired member who has been diagnosed with a terminal illness can apply for prepayment of a portion of the life insurance benefit. Approval is based on criteria set out by The Insurance Company.
Please contact CSSB for:
- The application package to get prepayment
- To discuss your pension benefit
You can run an insurance estimate in your Online Services account. Any changes to your insurance class must be made through your employer before your date of retirement. Once you are retired, you will no longer be able to change your class.
Premiums are not deducted while your pension is paid on an interim basis. This does not affect your coverage. Once your pension is finalized (typically in three to six months) and your employer confirms eligibility, monthly deductions will begin. At that time, a one-time retroactive deduction will cover the period from when your employee coverage ended to the current month, plus pre-payment for the following month.
