April 16th, 2014

Important details on your group insurance

This communication is following a priority notification concerning the calculation of subscriber’s life insurance and accidental dismemberment amounts as well as the management of employees without subsidy.

Calculation of subscriber’s life insurance and accidental dismemberment amounts

As many of you may have noticed, subscriber’s life insurance and accidental dismemberment amounts as calculated by Gestionnaire slightly differ from those that appear on the April’s invoice you received from Desjardins. The calculation method used in Gestionnaire rounds up the annual salary to the highest thousand, as the calculating tool (i.e. the Excel file) provided by Desjardins also did, and which we used as a reference while developing the new group insurance plan. It turns out that the annual salary should no longer be rounded up.

Therefore, a priority notification will be sent shortly (you may have received it already) to correct this calculation error. Monthly premium amounts and payroll deduction amounts will be updated automatically and necessary adjustments will be made retroactively upon next payroll calculation.

Warning: please note that the imprecision resulting from the calculation method used cannot exceed $0.10 per employee/per month, or at most $0.03 to $0.04 per employee/per 2-week period. A difference in excess of that is probably caused by a configuration error in Gestionnaire.

Employees without subsidy

We had been given information to the effect that the MFA did not manage specific employee situations for which subsidy should not be paid on the account on the employee, and that subsidy would be paid to Desjardins regardless of those employee situations (i.e. employees on unpaid leave of absence). New information we received confirms otherwise. Employees not entitled to subsidy should continue to pay for the total amount of their premiums and no subsidy will be paid on their part to Desjardins.

In order to allow you to manage those specific cases, a priority notification will be sent shortly (you may have received it already as well) that will create “no subsidy” copies of the existing packages (A, B and C) as well as a “no subsidy” default template for each package. For example, if an employee not entitled to subsidy was configured to use template “Package C (2014-04-01 to 2015-03-31)”, you need only to change it to template “Package C – No subsidy (2014-04-01 to 2015-03-31)”. Necessary adjustments will be made retroactively upon next payroll calculation.

For more information on this communication, contact Customer Support at 1 800 463-5066.

The Gestionnaire team