COVID-19 & Contributions to Extended Health Care Benefit Plans and Pension Plans

Overview

  • Contributions to health benefits and pension plans should continue for members on pay continuance.

  • In B.C., federal jurisdiction, Nova Scotia, Ontario, P.E.I, Quebec and Saskatchewan, workers on a statutory leave of absence are entitled to continued participation in health benefit and pension plans during their leave. Employer contributions may or may not be required.

  • Employers are generally not required by employment standards legislation to continue health benefit and pension contributions during periods of lay-off. Limited exceptions for Alberta, Federal, Manitoba, and Ontario are noted.

  • The collective agreement, group benefit plan document, pension plan text, and other relevant contracts will determine what has been negotiated above minimum standards for benefit continuation during a leave of absence or period of lay-off.

  • CUPE Locals can try to negotiate solutions in the absence of existing language that provides for continued benefit coverage during periods of lay-off.

Negotiated Solutions

EI Work Sharing

Employers must maintain all existing employee benefits for the duration of the Work-Sharing agreement. Benefits calculated based on earnings or hours of work may be reduced.

EI SUB Plans

Locals can negotiate a Letter of Understanding to establish a registered SUB Plan, with terms that include continued contributions to the health benefit and pension plan for the duration of the work stoppage. Any employee required contributions would be deducted from SUB benefit payments.

NOTE: As of March 31, the Government has not decided how to handle SUB plans (employer top-ups to EI benefits) for the CERB/EI-CERB benefit period. CUPE is pushing the government to allow these top-ups.

Emergency Letter of Agreement: Considerations

(Options in descending order)

  1. The Employer shall pay both the Employer and employee share of health benefit plan premiums and pension contributions for the duration of the layoff period.

  2. The Employer shall pay its share of health benefit plan premiums and pension contributions for up to X months from the end of the month in which the lay-off occurs. After X months, the employee may elect to continue health benefit plan coverage and pension contributions for as long as they retain recall rights, provided the employee pays the full cost of such benefits.

  3. Within X days of commencement of layoff, individuals must advise the Employer whether they wish to continue in the health benefit plan. Continued coverage will require the employee to pay the full premium cost.

Considerations for employee cost recovery

  • Deduction from future earnings of the employee upon recall;

  • Authorization of direct withdrawal from the employee's financial institution;

  • Monthly direct payments to Employer;

  • Paid in advance by post-dated cheques.

Minimum Standards
Benefit Continuation During Statutory Leaves Benefit Continuation During Lay-Off
AB Not required to continue health benefit coverage and pension contributions. Not required. Employer can extend a temporary layoff beyond 60 days by agreement with the worker and under certain conditions, e.g. employer contributes to the health benefit or pension plan for the extended period of layoff.
BC A worker has the right to continue health benefit coverage and pension contributions. Employer contributions are mandatory unless the worker opts out of making their share of contributions. **New job-protected leave in B.C. for workers unable to work for reasons related to COVID-19. Not required.
FED A worker has the right to continue health benefit coverage and pension contributions. Employer contributions are mandatory unless the worker opts out of making their share of contributions within ‘a reasonable time’. **New job-protected leave for federally regulated workers unable to work for reasons related to COVID-19. Not required. Employer can extend a temporary layoff beyond 3 months under certain conditions, e.g. employer contributes to the health benefit or pension plan for the extended period of layoff.
MB Not required to continue health benefit coverage and pension contributions. Not required. Employer can extend a temporary layoff beyond 8-weeks by agreement with the worker and under certain conditions, e.g. employer contributes to the health benefit and pension plan for the extended period of layoff.
NB Not required to continue health benefit coverage and pension contributions. Not required.
NL Not required to continue health benefit coverage and pension contributions. Not required.
NS A worker has the right to continue health benefit coverage and pension contributions at their own expense. Employer is not required to contribute. **Declared Emergency Leave in NS may be available for workers who cannot work due to the public health emergency Not required.
ON A worker has the right to continue health benefit coverage and pension contributions. Employer contributions are mandatory unless the worker opts out of making their share of contributions. **Declared Emergency Leave and new Designated Infectious Disease Leave may be available for workers who cannot work due for reasons related to COVID-19. Not required. Employer can extend a temporary layoff beyond 13-weeks under certain conditions, e.g. employer contributes to the health benefit or pension plan for the extended period of layoff.
PEI A worker has the right to continue health benefit coverage and pension contributions at their own expense. Employer is not required to contribute. Not required.
QC A worker has the right to continue health benefit coverage and pension contributions. Employer contributions are mandatory unless the worker opts out of making their share of contributions. Not required.
SK A worker has the right to continue health benefit coverage and pension contributions at their own expense. Employer is not required to contribute. **New “Public Health Emergency Leave” may be available for workers who cannot work due to the public health emergency. Not required.

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