The Other Post-Employment Benefits Eligibility Modifications Act extinguishes employees and deferred pensioners rights to group health and group life insurance benefits, also known as Other Post-Employment Benefits (OPEB) under the old criteria and reinstates them for employees and deferred employees who qualify for group health and group life insurance benefits during the five year transition period or are grandparented under the old rules.

Revised Treasury Board policy and letters of understanding attached to the collective agreements will establish new criteria related to the eligibility for post-employment group health and group life insurance benefits for new employees and for those existing employees and deferred pensioners who are not grandparented. Effective January 1, 2015 new employees and those not grandparented will require 10 years of pensionable service instead of five and must immediately retire under the PSPP upon termination of employment. If they have to defer their pension or choose to take a commuted value (lump sum payment) they will not be eligible for OPEBs.

The details of the changes to post-employment group health and group life insurance eligibility are:

• As noted in the Public Service Pensions Act, there will be a five-year transition period for the implementation of the changes to post-employment group health and group life insurance benefits for existing employees and deferred pensioners.
• Employees who qualify for an unreduced pension during the transition period will be grandparented under the current rules for group health and group life insurance benefits (five years of service).
• Employees who qualify for a reduced pension during the transition period must retire during the transition period in order to qualify for group health and group life insurance benefits.
• Deferred pensioners (people no longer employed with the public service and have deferred their pension) must meet the eligibility requirements for an unreduced or reduced pension and must retire during the transition period in order to avail of the existing provisions and the current rules for group health and group life insurance benefits.
• Deferred pensioners or employees on salary continuance (post-employment) prior to January 1, 2015 who do not retire during the transition period shall be eligible for group health and group life insurance benefits if they agree to pay 100 per cent of the required premiums. This allows deferred pensioners and employees on salary continuance prior to January 1, 2015 the opportunity to maintain benefits under the Government of Newfoundland and Labrador group insurance plan.
• After the transition period, an employee will not qualify for group health and group life insurance benefits unless they have at least 10 years’ pensionable service and commence receipt of a pension on termination. As noted these new rules apply to all new employees hired after December 31, 2014.