If you are a retiree and are receiving benefits from either the Public Service Pension Plan, the Uniformed Services Pension Plan, the Members of the House of Assembly Pension Plan, or the Provincial Court Judges’ Pension Plan and have elected to continue your group insurance benefit, you are eligible for benefits as outlined below.
Please note: All employees hired on or after April 1, 2020, upon retirement from government, will have different supplementary health coverage. Drug costs will be reimbursed at 70 per cent on ingredient cost only, with dispensing fees paid by members, up to an out of pocket maximum of $4,000 and reimbursed at 100 per cent thereafter. Other non-drug benefits will have a $1,500 maximum coverage.
Employees hired on or before March 31, 2020 will continue to have drugs covered at 100% of ingredient costs for approved drugs and will not be restricted to the $1,500 cap on non-drug benefits in retirement.
Notwithstanding the above, government maintains its right to administer and/or modify the post-employment group insurance programs.
Retirees under age 65
If you retire early (prior to age 65) and are in receipt of a pension from one of the pension plans outlined above, you will be given a one time option at your retirement date to continue your group insurance coverage, without evidence of good health.
The level of benefits will be identical to those offered to active employees (if hired on or before March 31, 2020), with the exception of the basic group life and basic accidental death and dismemberment insurance benefits, which will each be two times your annual pension rounded to the next higher $1,000, if not already a multiple thereof, subject to a minimum of $10,000 and a maximum of $1,000,000. The amount of life insurance is payable to the designated beneficiary currently on file and must be claimed within 1 year (365 days) from date of death.
The supplementary health drug and non-drug changes (noted above) will apply to all retirees who were hired on or after April 1, 2020.
You may also elect to continue optional dental care, optional group life and optional accidental death and dismemberment insurance during early retirement provided you pay 100% of the premiums. Optional long term disability and critical illness insurance can not be continued in retirement.
Note: If you elect to continue your group insurance coverage during early retirement, a Continuation of Coverage Form must be completed and given to your Administrator prior to your retirement or last day worked.
Retirees over Age 65
All basic and optional life insurance ceases for retirees at age 65.
In the event you have been insured under this program for a period of five consecutive years immediately prior to your 65th birthday, you will be eligible for a reduced insurance policy with no further premium payment on the first of the month following attainment of age 65, which will remain in force throughout your lifetime. The reduced insurance policy is currently at $7,500 and is subject to change. You do not have to be in receipt of a defined benefit pension plan to receive this benefit.
You are also eligible to continue your supplementary health and group travel insurance plans. Dental insurance may also be continued during retirement.
In the event of your death, your surviving spouse, who on the date of your death was insured under the plan, will be given the option of continuing in the group health insurance program if in receipt of a survivor pension. The premium share and the supplementary health coverage will be the same as that of the deceased plan member.
Eligibility Criteria and Premium Share
The group insurance eligibility criteria and premium share in retirement for non-unionized employees is outlined in section 6.1 of the “Other Post-Employment Benefits Eligibility Modification Act” and unionized employees should refer to their respective collective agreements.
Retirees should note that certain provisions may vary; however, any questions should be forwarded to:
Benefits Administration – Group Insurance
P. O. Box 8700
Confederation Building
St. John’s, NL A1B 4J6
Email: groupinsurance@gov.nl.ca
Telephone: (709) 729-2310
Note: In all correspondence, please indicate your name, address and Identification Number.