USFA e-Letter: Benefits after age 67
Although mandatory retirement has ended in Saskatchewan effective November 17, 2007, other age-based provisions, from senior citizen discounts to insurance policies, have not been emended by this legislation. Where appropriate, changes to benefit plans must be negotiated by the affected parties. Last fall, a USFA team negotiated a Memorandum of Agreement on retirement matters. In brief, the basic group life insurance plan, the extended health plan and the dental plan will remain in effect for employees who work past their normal retirement date in accordance with the terms of these plans. Salary continuance in the event of illness or disability is capped at 180 days for employees who work beyond the normal retirement date. Some other limitations apply, and are outlined in the memorandum.This is a significant achievement. Even after mandatory retirement was ended, many employers provide no salary continuance for employees past normal retirement age. Moreover, employers in many jurisdictions are not obliged to rehire post-normal-retirement-age employee who get injured at work after they have recovered.
Pensions are more complicated. However, in the short term, employees will continue to make contributions and receive benefits in accordance with the terms of the plans. Presently, the Income Tax Act requires an individual to commence receiving a pension after age 71. To read the full text of the Memorandum of Agreement, click here.
USFA thanks the team of Don Hamilton, Larry Stewart, Maureen Fryett and Eric Neufeld for the many hours contributed to studying this issue and to negotiating the final agreement.
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Your Association is interested in your views. You can give us your input by writing directly to the Officers listed below.
Jim Cheesman (Chief Negotiator) jim.cheesman@usask.ca
Doug Chivers (Chair) doug.chivers@usask.ca
Jay Kalra (Vice-Chair) jay.kalra@usask.ca