The Disability Board of Management is responsible for the overall administrative and financial management of the Disability Insurance Plan, including the review of the contract of insurance, review of any financial or service agreement, the financial status of the Plan, the services of the Insurer, the administrative fees and charges, the adequacy of reserves, the premium levels, the disposition of disputed claims, and other matters referred to it by the National Joint Council on the overall operation of the Plan, and for making appropriate recommendations to the National Joint Council.
Committee Advisor: Laura.Sanford@njc-cnm.gc.ca
Quarterly Report to the National Joint Council (September 2022)
Regular activities:
- The Board of Management has met once (1) since the last Council meeting and considered three (3) appeals over the reporting period. The Board agreed with Sun Life’s (SL) decision to decline to provide disability benefits for two (2) appeals and disagreed with SL’s decision to decline benefits for one (1) appeal.
- In two (2) of the appeal cases reviewed, SL declined to provide disability benefits as it was of the view that the medical information on file did not support findings of continuous total disability that would prevent the claimants from performing each and every duty of their regular occupations, and in one (1) appeal, SL declined to provide disability benefits as it was of the view that the medical information on file demonstrated that the claimant had a pre-existing condition. The Board carefully reviewed the information on file.
- The Board received a presentation from SL which provided an overview of the 2021 Financial Results, as well as the 2022 year-to-date financial results of the DI Plan. The presentation noted an increase in plan membership, as well as the continued demographic trend of an increased proportion of females and a decreased average age of members. The number of claims increased by 14% from 2020. As in past years, mental health conditions remain the leading cause of new DI claims approved in 2021. The overall result of the 2021 financial experience for the Plan at year end was positive, with an in-year gain of $11.9M, and it was also noted that the balances in the Claims Fluctuation Reserve and the Surplus Account were also positive.
- The Board continues to receive monthly financial updates from SL.
Outstanding item(s):
- Thirty-three (33) appeals. Of these, eight (8) appeals have been received by the NJC Secretariat from SL and are scheduled for review, and twenty-five (25) are still under review with SL.
Next meeting: November 8, 2022