COMPARISON Canada Assessing Your Benefits

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watsonw yatt.com

December 17, 2010

COMPARISON Canada

Assessing Your Benefits

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McMaster University

December 17, 2010 T:\Services\CUST\2010\University of Ottawa\Participants Report\Participants Report_B_McMaster.doc

Page

1. Introduction ... 1

2. General Methodology ... 2

3. Total Benefits Results ... 3

4. Summary of Plan Provisions



Retirement Plans ... 4



Supplemental Employee Retirement Plans... 11



Retirement Allowance/ Severance Payment……… 13



Flexible Benefits/ Health Care Spending Accounts ... 16



Medical Benefits ... 17



Medical Benefits for Retirees ... 29



Dental Benefits ... 33



Dental Benefits for Retirees ... 36



Group Life Insurance ... 39



Life Insurance for Retirees... 41



Short-Term Disability ... 42



Long-Term Disability... 43



Tuition Fee Assistance for Dependents ... 46



Employee Assistance Program... 50



SUB Plans Top Up for Maternity/ Paternity ... 54

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McMaster University

December 17, 2010

T:\Services\CUST\2010\University of Ottawa\Participants Report\Participants Report_B_McMaster.doc

DISCLAIMER

Towers Watson provides this report on an “as is” basis and warrants and guarantees that the report provided is fit for the purpose for which it is intended as at such date. Towers Watson does not provide a warranty or guarantee of any kind as to the accuracy or completeness of the data or information it contains or is based upon other than the guarantee that Towers Watson has accurately and completely input the relevant data that was submitted to or obtained by Towers Watson.

You may use the report only within your organization and you may not modify, copy, sell or transfer it. You are solely responsible for your use of this report and the data and information contained herein.

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1. Introduction

McMaster University

December 17, 2010 1

This participant’s report presents the results of a benchmark assessment comparing the design of McMaster University’s total benefits

program offered to faculty employees against the peer group of universities selected by University of Ottawa used to perform their benefits

benchmark study.

Study Participants

The following universities were selected by University of Ottawa as the desired peer group for purposes of performing the benefits study.

Universities

Faculty Associations

Carleton University

N/A

Queen’s University

Queen's University Faculty Association

University of Guelph

University of Guelph Faculty Association

University of Waterloo

University of Waterloo Faculty Association

N/A

Windsor University Faculty Association

N/A

McMaster University Faculty Association

University of Western Ontario

N/A

Benefit plan information used to produce this benchmarking assessment were taken from our COMPARISON questionnaire as well as from

information provided for a similar study we conducted in 2008. We then communicated with each university’s human resources

representative as well as representatives from each of the university’s faculty association requesting them to validate the accuracy of the

information gathered

Note that throughout this report, the names of the peer group are not disclosed when presenting results so as to maintain confidentiality of

each university’s benefit plan provisions. Your university is identified as University B.

Benefits Included in Study

The study focused on measuring the following benefit plans from each university, applicable to newly hired employees:



Retirement plans, such as registered pension plans and other savings plans, supplemental employee retirement plan and retirement

allowance/severance payment,



Group benefit plans, such as medical, dental, life insurance and disability plans,

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2. General Methodology

McMaster University

December 17, 2010 2

The results presented in this participant’s report focuses on comparing how McMaster University’s benefits plan design measures against

the other universities’ benefits plan design. It is not intended to be an analysis of comparing actual benefit costs, since a university’s benefits

costs are affected not only by their benefits plan design, but also by other factors such as funding decisions, plan experiences and

demographics. Neutralizing these factors allows for a more objective method of comparing benefit plans.

The general methodology used to assess how McMaster University’s benefits plan design ranks against the selected peer group is briefly

described as follows:



For each participant, we compute an annual dollar cost value for each benefit plan, based on each participant’s respective benefit

plan provisions and using the valuation methods and assumptions described in the Appendix of this report. The annual dollar cost

values are calculated using University of Ottawa’s demographic population. Note again that these dollar cost values reflect the

expected cost of the benefit without regards to funding or plan experience.



The annual dollar cost values are then allocated between what the employer contributes towards the cost of the benefit (“employer

benefit value”) and what the employee contributes (“employee benefit value”) based on the cost-sharing arrangements of each

university’s benefit program. The sum of these two values is referred to as the “total benefit value”.

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3. Total Benefits Results

McMaster University

December 17, 2010 3

Total Benefits Results

The following table presents the comparison results with respect to overall employee benefit program.

Total Benefits - Baseline

0 25 50 75 100 125 150 175 Re la ti ve V al u es Total 170 137 151 140 144 154 140 128 146 Employee 44 19 49 42 51 66 52 44 46 Employer 126 118 102 98 93 88 88 84 100

University A University E University H University B University D University G University F University C

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4. Summary of Plan Provisions

McMaster University

December 17, 2010 4

Retirement Plans - Table 1

Employer Type of Retirement

Program Eligibility and Vesting Employee Contributions Employer Contributions to DC Plan Definition of Earnings University A Defined benefit plan Eligibility: Date of hire

Vesting: Immediate

Required: 4.8% of earnings up to YMPE plus 6.5% of earnings above YMPE (maximum of 35 years, contributory earnings capped at $142,000)

N/A Base pay

University B Defined benefit plan Eligibility: Date of hire

Vesting: 2 years

Required: 5% of annual earnings up to YMPE plus 6.5% of annual earnings above YMPE

N/A Base pay

University C Hybrid Plan

Money Purchase Plan and Minimum

Guarantee DB plan

DB Plan:

Eligibility: Date of hire Vesting: Immediate

DC Plan:

DB Plan: None

DC Plan:

Required: 4.5% of annual earnings up to YMPE plus 6% of annual earnings above YMPE

Voluntary Contributions permitted

DB Plan: N/A

DC Plan:

Required: 6% of earnings up to YMPE plus 7% of earnings above YMPE

DB Plan: Base pay

DC Plan: Base pay

University D Defined benefit plan Eligibility: Date of hire or on January 1st following the 35th birthday

Vesting: Immediate

Required: 5.8% of earnings up to YMPE, plus 8.30% of earnings above YMPE up to 2 times YMPE, plus 9.65% of earnings above 2 times YMPE

N/A Base pay

University E Defined contribution

plan Eligibility: Date of hire Vesting: Immediate

Required: 1.5% or 5.5% of earnings

(69% of employees opted for the 1.5% contribution rate as at December 31, 2009)

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4. Summary of Plan Provisions

McMaster University

December 17, 2010 5

Employer Type of Retirement Program

Eligibility and Vesting Employee Contributions Employer Contributions to DC Plan

Definition of Earnings University F Hybrid Plan

Money Purchase Plan and Minimum

Guarantee DB plan

DB Plan:

Eligibility: Date of hire; voluntary prior to age 30, compulsory after age 30 Vesting: Immediate

DC Plan:

Eligibility: Date of hire; voluntary prior to age 30, compulsory after age 30 Vesting: Immediate

DB Plan: None

DC Plan:

Required: 4.37% of earnings up to YMPE plus 6% of earnings above YMPE

Voluntary contributions permitted without matching

DB Plan: N/A

DC Plan:

Required: 4.62% of earnings up to YMPE plus 6.25% of earnings above YMPE

DB Plan: Base pay

DC Plan: Base pay

University G Hybrid Plan

DC Plan and Minimum Guarantee DB plan

DB Plan:

DC Plan:

DB Plan: None

DC Plan:

Required: 6% of annual earnings

Additional voluntary contributions allowed subject to tax limitations

DB Plan: N/A DC Plan: Required: 6% of annual earnings DB Plan: Base pay DC Plan: Base pay

University H Defined benefit plan Eligibility: From first day of work, maximum delay is age 30 or 2 years of service which ever comes first (date of hire valued)

Vesting: Immediate

Required: 4.25% of earnings up to YMPE plus 6.55% of earnings above YMPE (YMPE is set each year, current for 2010 is: $34,989, contributory earnings capped at $189,557)

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4. Summary of Plan Provisions

McMaster University

December 17, 2010 6

Retirement Plans - Table 2

Employer Normal Retirement Benefit (DB

only) Early Retirement Benefit (DB only) Normal Form of Benefit (DB only) Supplemental Bridge Benefit (DB only)

Post-retirement indexing (DB only) University A 1.5% of BAE(3) up to Average

YMPE(5) plus 2% of BAE(3) above Average YMPE(5), times credited service (maximum of 35 years)

BAE(3) = Best 3 consecutive year Average Earnings

Unreduced: Age 65 or Rule of 85 points

Reduced: 3% per year before age 65 or Rule of 85 points

Single Form: Payable for the member’s lifetime, with 5 years of pension payments

guaranteed

Married/Joint Form: Joint and 60% survivor annuity equal to 100% of the pension payable

None Automatic

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4. Summary of Plan Provisions

McMaster University

December 17, 2010 7

Employer Normal Retirement Benefit (DB only)

Early Retirement Benefit (DB only)

Normal Form of Benefit (DB only) Supplemental Bridge Benefit (DB only) Post-retirement indexing (DB only) University B 1.4% of BAE(4) up to Average

YMPE(4) plus 2% of BAE(4) above Average YMPE(4), times credited service

BAE(4) = Best 4 year Average Earnings

Unreduced: Age 65 or Rule of 80 points*

Reduced: 6% per year before age 65

*The Rule of 80 stays in place until December 31, 2011. From January 1, 2012 to December 31, 2012, the Rule of 80 would be replaced by the Rule of 81. From January 1, 2013 to December 31, 2013, this would become the Rule of 82. From January 1, 2014 to December 31, 2014, this would become the Rule of 83. From January 1, 2015 to December 31, 2015, this would become the Rule of 84. From January 1, 2016 onwards, the Rule of 85 would be in place. For faculty who begin on July 1, 2006 or later, the Rule of 85 applies immediately.

guaranteed

Married/Joint Form: Subsidized Joint and 50% Survivor annuity, guaranteed 7 years Monthly bridge of $19 times years of service up to June 30, 1996 (maximum 20 years) (Not valued) Automatic

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4. Summary of Plan Provisions

McMaster University

December 17, 2010 8

Normal Form of Benefit (DB only) Supplemental Bridge Benefit (DB only) Post-retirement indexing (DB only) University C 1.4% of BAE(4) up to Average

YMPE(4) plus 1.8% of BAE(4) above Average YMPE(4), times credited service

Unreduced: Age 65

Reduced: 2% per year between age 60 and 65 and 6% per year between age 55 and age 60

guaranteed

Married/Joint Form: Actuarially equivalent to pension payable to members who do not have a spouse

None Automatic

Depending on pension fund investment return averaged over 4-year period If average return exceeds 6%, the excess is used to improve pensions If average return is less than 6%, no increase University D 1.4% of BAE(3) up to Average

BAE(3) = Best 3 years Average Earnings in the last 10 years

Unreduced: Age 62

guaranteed

None Automatic

100% of year over year CPI, maximum of 5% (CPI above 5% hinges on plan's finances; investment goals intend full indexing)

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4. Summary of Plan Provisions

McMaster University

December 17, 2010 9

Normal Form of Benefit (DB only) Supplemental Bridge Benefit (DB only) Post-retirement indexing (DB only) University F 1.29% of BAE(5) up to Average

Unreduced: Age 65

guaranteed

Married/Joint Form: Actuarially equivalent to pension payable to members who do not have a spouse Only for members who were 45 years of age at July 1, 2003 (Not offered to new hired employees – not valued): $5,176.32 times credited service (maximum of 20 years) Automatic 4 years average of Fund Interest rate minus 6%

University G 1.5% of BAE(4) up to Average YMPE(4) plus 2% of BAE(4) above Average YMPE(4), times credited service

BAE(4) = Best 48 month Average Earnings

Unreduced: Age 65

Reduced: Actuarial reduction factor

guaranteed

None Automatic

If CPI increase is from 0% to 2%: the benefit increases by 100% of CPI

If CPI increase is greater than 2% and less than or equal to 4%: the benefit increases by 2% If CPI increase is greater than 4% and less than or equal to 8%: the benefit

increases by 50% of the CPI increase

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4. Summary of Plan Provisions

McMaster University

December 17, 2010 10

Normal Form of Benefit (DB only) Supplemental Bridge Benefit (DB only) Post-retirement indexing (DB only) University H 1.3% of BAE(5) up to Average

Minimum benefits:

1.5% of FAE(5), times credited service

BAE(5) = Best 5 years Final Average Earnings

Average YMPE(5): Currently set at $34,989 for 2010

Unreduced: Age 60 or Rule of 90 points

Reduced: 6% per year before age 60 or Rule of 90 points

guaranteed

Married/Joint Form: Subsidized Joint and 60% Survivor annuity, guaranteed 5 years

None Automatic

If CPI is less than 2%: 100% of CPI

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4. Summary of Plan Provisions

McMaster University

Supplemental Employee Retirement Plans

Employer Eligibility Benefit Description Other Provisions

University A No coverage N/A N/A

University B No coverage N/A N/A

University C Optional to all employees affected by ITA limits (assume all employees participate - valued)

Hybrid plan:

Fully mirror benefits provided under the registered plan (except for the ITA limits)

Supplemental Pension Plan allows increased employee contributions, with "excess" university contributions (in excess of CRA maximum) being credited to non-registered supplemental pension account

Funding:

Not pre-funded or secured (i.e., pay-as-you-go)

Employee contributions:

Employee contributions to pension plan increased, reduced employer contribution credited to SERP Supplemental accounts are credited with interest at the rate which is earned by the Pooled Investment Fund, and paid (taxable) to employees at retirement University D All employees affected by the

ITA limits

Different benefits provided:

ITA limits in RPP subject to indexing to a maximum cap of $3,200 per year of credited service

Cap in supplemental plan is indexed as follows up to a maximum cap of $3,200, $2,725 in 2008, $2,800 in 2009 and indexed up to increases in AIW thereafter

Intent is to adjust ITA cap and supplemental plan cap periodically

Funding:

Employee contributions: None

University E All employees affected by the

ITA limits Defined contribution plan only: _{Fully mirror benefits provided under the registered plan} (except for the ITA limits)

Excess employer and employee contribution above RPP limits

Funding:

Employee contributions: None

University F No coverage N/A N/A

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4. Summary of Plan Provisions

McMaster University

Employer Eligibility Benefit Description Other Provisions

University H All employees affected by the

ITA limits Different benefits provided: _{Past service (pre 1/1/1999): $1,722 indexed at CPI/AIW} since 1997

Future service (post 1/1/1999): 120% of professor salary cap is equal to the SERP's pensionable earning's cap (120% * $157,964 = $189,557 which is the maximum pensionable earnings under the SERP)

Funding:

Future service accrual subject to availability of designated surplus under the registered plan. At present, there is no accrual of future service credits beyond December 31, 2007

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4. Summary of Plan Provisions

McMaster University

Retirement Allowance /Severance Payment

Employer Eligibility Formula of the Benefit Definition of Earnings Maximum Amount Form of Payment University A Age 55 – 65 with 10 years of

service – in current Collective Agreement as a Letter of Understanding Collective Agreement expires June 30, 2011

12 months of base salary Base salary 12 months of salary Lump sum

University B No formal policy on payment of severance

University may decide to offer severance to

encourage early retirement on an individual basis only, such arrangements to be negotiated between the individual and the University

N/A N/A N/A N/A

University C No longer offered after

2004-2005 N/A N/A N/A N/A

University D Voluntary arrangements Association generally not involved in process

Mutually agreeable arrangements needing approval with cost funded by department where the member works

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4. Summary of Plan Provisions

McMaster University

Employer Eligibility Formula of the Benefit Definition of Earnings Maximum Amount Form of Payment University E Full-time Probationary and

Tenured Members with 10 years of full-time service who are eligible to elect phased retirement (at any time within 10 years immediately preceding normal retirement date)

Reduced workload range of 75% to 25% per year with a range of reduced total workload of 150% -200% for the 3 years

A minimum of 50% of the

Member’s base salary immediately before the commencement of the 3 year Phased Retirement period with payout options

Annual base salary in effect in the month prior to the commencement of the phased retirement period

N/A Cash payment or into

RRSP

As a retiring allowance paid at the end of the phased retirement period and sheltered to the ITA limit; or

As a retiring allowance paid at the end of the phased retirement period and sheltered to the ITA limit with the balance paid in three equal installments at July 1 of each year of the phased retirement period; or

Three equal

installments paid at July 1 of each year of the phased retirement period

University F No coverage for faculty

members N/A N/A N/A N/A

University G Voluntary contract termination (VCT)

Member holding a regular appointment and tenure may apply

Severance payment negotiated on a case-by case basis

Minimum amount payable is 6 months of earnings, if VCT is initiated by member (which is being valued for purposes of this study), or 12 months of earnings if VCT is initiated by the University

Many factors are considered when deciding on a final sum. However, there is no set formula for

payment.

Base salary of member’s

final year of employment No maximum payment Lump sum _{Member &}

Administration must both agree to the voluntary contract separation

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4. Summary of Plan Provisions

McMaster University

Employer Eligibility Formula of the Benefit Definition of Earnings Maximum Amount Form of Payment University H When the member retires

prior to the normal

retirement date with age 60 or age plus credited service equal 90

$800 x number of years of full-time service x number of years until normal retirement (maximum of 5 years)

Base pay None Lump sum

Option of payment also available in

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4. Summary of Plan Provisions

McMaster University

Flexible Benefits/ Health Care Spending Accounts

Employer Type of Plan Eligibility Benefit Plans Having Flexible Elements

H.S.A. or Flex Credits Use of Flexible Credits

University A No coverage N/A N/A N/A N/A

University B No coverage N/A N/A N/A N/A

University C No coverage N/A N/A N/A N/A

University D No coverage N/A N/A N/A N/A

University E Flexible benefits and Health care spending account

Date of hire HSA:

Medical and Dental expenses not covered

Co-Pay amounts Medical and Dental expenses with limits

HSA:

Single/ Family: $225/ $675 per year

Flexible Benefits Program: $400 per year

Flexible Benefits Program: Allocate to Health care spending account Account or Professional Expense Reimbursement (PER)

(Increments of $100) Default option: $200 to the HCSA (valued) and $200 to the PER if no planned allocation is made by a member

University F No coverage N/A N/A N/A N/A

University G No coverage N/A N/A N/A N/A

University H Stand-alone Health Spending Account

Flexible Benefits Program: Add

additional benefits onto a core group of benefits (core plus options)

Date of hire LTD Health Dental

Stand-alone H.S.A.:

$262 per year (indexed annually by CPI increase)

Flexible Benefits Program:

Flexible benefit plan does not involve the use of credits

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4. Summary of Plan Provisions

McMaster University

Medical - Table 1

Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum Hospital (In

Canada) Prescription Drugs Vision Care Paramedical Coverage

University A Date of hire

May opt-out at employee’s discretion No deductible Out-of-pocket maximum: $450 Applied to Prescription Drugs No overall maximum Covered at 100% Semi-private room rate Covered at 100% Drugs requiring a prescription

Drug Card used: On a direct payment basis (adjudicated at point-of-sale)

No per script deductible

Maximum dispensing fee: $6.50 per prescription, no

maximum when the out-of-pocket is reached

Mandatory generic substitution

Covered at 100%

One eye exam every 24 months Glasses and contact lenses up to $350 every 24 months Covered at 100%

Per visit maximum of $20 and annual maximum of $300 for each of the following services:

Chiropractors Podiatrists

Psychologists (no maximum per visit) Acupuncturists (no maximum per visit) Naturopaths

Osteopaths

Speech therapists (no maximum per visit)

Annual maximum described below for the following services:

Physiotherapists: Unlimited

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4. Summary of Plan Provisions

McMaster University

Employer Eligibility Annual Deductibles, Out-of-pocket Maximum and Overall Plan Maximum Hospital (In Canada)

Prescription Drugs Vision Care Paramedical Coverage

University B Date of hire

Cannot opt out No deductible No out-of-pocket maximum No overall maximum Covered at 100% Semi-private room rate, maximum of $110 per day (costs exceeding an out-of-pocket of $300 per person per benefit year reimbursed)

$10 per day to put towards private room coverage

Covered at 100%

Drugs requiring a prescription

Maximum dispensing fee: $6.50 No mandatory generic substitution Covered at 100% Eye exams up to $100 every 24 months (for insured members only) Glasses, contact lenses and laser eye surgery, up to $250 every 24 months

Covered at 100%

Annual maximum of $300 for each of the following services: Chiropractors Physiotherapists Podiatrists Psychologists Massage therapists Naturopaths Osteopaths

Christian Science Practitioners

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4. Summary of Plan Provisions

McMaster University

University C Date of hire

May opt-out at employee’s discretion Deductible: Single: $25 Couple: $25 Family: $25 Applied to Prescription Drugs, Paramedical services and Medical Services & Supplies No out-of-pocket maximum No overall maximum Covered at 100% Semi-private room rate Covered at 100% Drugs requiring a prescription

Drug Card used: None

Maximum dispensing fee: Unlimited

No mandatory generic substitution

Covered at 100%

One eye exam up to $65 every 24 months Glasses and contact lenses up to $250 every 24 months

Visual Training & remedial therapy up to a lifetime maximum of $150 (Not valued)

Physiotherapists and Speech therapists: Covered at 100%

Other specialists: Covered at 50%

Annual maximum of $300 for each of the following services: Chiropractors Podiatrists Naturopaths Osteopaths Chiropodists

Annual maximum described below for the following service:

Speech therapists: $1,000

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4. Summary of Plan Provisions

McMaster University

University D Date of hire

Cannot opt out (only part-time employees may opt-out of plan) No deductible Out-of-pocket maximum: Single: $121 Family: $242 Applied to Prescription drugs, Paramedical, and medical services and supplies No overall maximum Covered at 80% for the first 5 days, 100% thereafter Semi-private room rate Covered at 80% Drugs requiring a prescription

Maximum dispensing fee: $7 Mandatory generic substitution (unless specified otherwise by physician) No coverage Covered at 80%

Annual maximum of $585 for each of the following services:

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4. Summary of Plan Provisions

McMaster University

University E Date of hire

May opt-out if equivalent coverage through spouse’s plan No deductible Out-of-pocket maximum: Single: $450 Family: $900 Applied to Health & Dental combined No overall maximum Covered at 85% Semi-private or Private room rate

Covered at 85%

Maximum dispensing fee: $6.11 Mandatory generic substitution Covered at 100% Eye exam up to $25 per visit Glasses and contact lenses up to $150 every 12 months or $300 every 24 months Covered at 100%

Per visit maximum of $15 for each of the following services: Chiropractors Physiotherapists Massage therapists Acupuncturists Naturopaths Osteopaths Speech therapists

Podiatrists: $200 for surgery and $15 per visit

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4. Summary of Plan Provisions

McMaster University

University F Date of hire

May opt-out if equivalent coverage through spouse’s plan Deductible: Single: $25 Couple: $50 Family: $50 Applied to Prescription Drugs, Paramedical services and Medical Services & Supplies No out-of-pocket maximum No overall maximum Covered at 100% Semi-private room rate Covered at 80% Drugs requiring a prescription

Maximum dispensing fee: $8 No mandatory generic substitution Covered at 80% Glasses, contact lenses and laser eye surgery up to $400 every 24 months

Covered at 80%

Annual maximum of $200 for each of the following services:

Chiropractors Massage therapists Speech therapists

Unlimited annual maximum for each of the following services: Physiotherapists Podiatrists Psychologists Naturopaths Osteopaths

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4. Summary of Plan Provisions

McMaster University

University G Date of hire

May opt-out if equivalent coverage through spouse’s plan Deductible: Single: $10 Couple: $20 Family: $20 Applied to Prescription Drugs, Paramedical services, Vision Care and Medical Services & Supplies No out-of-pocket maximum No overall maximum Covered at 100% Semi-private or private room rate, lifetime maximum of $10 per day for 120 days

Covered at 100%

Maximum dispensing fee: Unlimited No mandatory generic substitution Covered at 100% Eye exam up to $75 every 5 years Glasses and contact lenses up to $400 every 24 months Covered at 100%

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4. Summary of Plan Provisions

McMaster University

University H Date of hire

Cannot opt out unless covered under another plan (then provided with $750 in HSSA) No deductible No out-of-pocket maximum No overall maximum Covered at 100% Private or semi-private room rate

(Optional coverage paid by employee - valued) Covered at 100% Drugs requiring a prescription

Maximum dispensing fee: $6.11 for a 30-day supply in Ontario, $3 per prescription in Quebec

No mandatory generic substitution

No coverage Covered at 100%

Annual maximum of $300 for each of the following services: Chiropractors Physiotherapists Podiatrists Massage therapists Naturopaths Osteopaths Speech therapists

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4. Summary of Plan Provisions

McMaster University

Medical - Table 2

Employer Out-of-Country Coverage Medical Services and Supplies Employee Contributions

University A Covered at 100%

Emergency and referrals covered Lifetime maximum of $1,000,000

Unlimited number of days covered per trip Travel assistance service provided

Covered at 100%

Private duty nursing: $25,000 per year Hearing aids: $300 every 5 years

Orthopaedic shoes and/or orthotics: Shoes: 1 pair per year Medical services

Ambulance services Durable medical equipment Accidental injuries to teeth

Glucose monitor: $150 every 5 years

None

University B Emergency: Covered at 100% Referrals: Covered at 80%

Emergency and referrals Lifetime maximum of $1,000,000 120 days maximum covered per trip Travel assistance service provided

Covered at 100% except mentioned otherwise

Private duty nursing: 40% of first $25,000 where expenses exceed $25,000, we will pay 80% of next $25,000 (maximum of $20,000) each year after claim has been paid 1/2 of amount reinstated; After 2 benefit years with no claims, entitlement is returned to full coverage

Hearing aids: Covered at 75% up to $500 every 3 years, 2nd aid under same, 100% as accident

Orthopaedic shoes and/or orthotics: Covered at 80%, maximum of $400 every 2 years

Medical services Ambulance services

Durable medical equipment: General medical devices: After deductible of $50/person/benefit year is paid, Plan covers 75% of the next $400 of eligible expenses and 100% of the

remainder of expenses per person in a benefit year for each category of medical supplies (home care devices, mobility devices, braces or trusses, prosthetics)

Convalescent care: $20 per day up to 120 days Accidental injuries to teeth

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4. Summary of Plan Provisions

McMaster University

University C Covered at 100%

Emergency only

Unlimited lifetime maximum

No maximum number of days covered per trip (as long as individual retains provincial healthcare coverage)

Travel assistance service provided

Covered at 100%

Private duty nursing: Covered at 80% up to $10,000 per year and $25,000 per lifetime

Hearing aids: $500 every 4 consecutive years Orthopaedic shoes and/or orthotics: 1 pair per year Medical services

Ambulance services

Durable medical equipment: Maximum for each prosthesis is $10,000

Convalescent care: $25 per day Accidental injuries to teeth

None, except the Hospital coverage which is 100% employee paid

University D Covered at 100%

Emergency only

Lifetime maximum of $1,000,000

Unlimited number of days covered per trip Travel assistance service provided

Covered at 100%

Private duty nursing: Covered at 80% on the first 10 days in each calendar year, 100% thereafter, maximum of $17,702 Hearing aids: $585 per ear every 5 years

Orthopaedic shoes and/or orthotics: Shoes: 3 pairs every 2 years, Orthotics: $585 per year if recommended by a Podiatrist or Doctor

Medical services Ambulance services Durable medical equipment Accidental injuries to teeth Glucose monitor

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4. Summary of Plan Provisions

McMaster University

University E Covered at 85%

Emergency only

Maximum of $200,000 per person per trip Unlimited number of days covered per trip Travel assistance service provided

Covered at 85%, except otherwise indicated

Private duty nursing Hearing aids: Unlimited

Orthopaedic shoes and/or orthotics: Covered at 100%: Shoes: 1 pair per year with a deductible of $75; Orthotics: 1 pair up to $400 per year

Ambulance services Durable medical equipment Accidental injuries to teeth

Glucose monitor: Covered at 100% up to $200 per year

None

University F Covered at 100%

Emergency only

Lifetime maximum of $1,000,000

180 days maximum covered per trip (no time limit for teaching staff if travelling while on sabbatical or business for university) Travel assistance service provided

Covered at 80%

Private duty nursing: Unlimited Hearing aids: Unlimited

Orthopaedic shoes and/or orthotics: 1 pair per year Medical services

Ambulance services Durable medical equipment Convalescent care

Accidental injuries to teeth

32% of cost

University G Covered at 100%

Emergency and referrals

Annual maximum of $1,000,000 for emergency and $50,000 for referrals

180 days maximum covered per trip Travel assistance service provided

Covered at 100%

Private duty nursing: $10,000 per year

Hearing aids: $2,000 every 5 years, Hearing tests up to a maximum of $75 every 5 years

Orthopaedic shoes and/or orthotics: Foot orthotics: Unlimited Ambulance services: To the nearest hospital

Durable medical equipment Accidental injuries to teeth

(31)

4. Summary of Plan Provisions

McMaster University

University H Covered at 100%

Emergency only

Lifetime maximum of $500,000 180 days maximum covered per trip Travel assistance service provided

Covered at 100%

Private duty nursing: $25,000 lifetime

Orthopaedic shoes and/or orthotics: Shoes $250 per year, Orthotics: $400 every 3 years

Medical services Ambulance services Durable medical equipment Accidental injuries to teeth Glucose monitor

(32)

4. Summary of Plan Provisions

McMaster University

Medical Benefits for Retirees

Employer Medical Benefits Continued for Retirees

Eligibility

Requirements Main Differences in Benefit Provisions Retiree Contributions Surviving Dependent Coverage

University A Offered to all retirees

Must have 10 years of pensionable service with the university (if hired after July 2007) Must draw pension benefit immediately upon retirement (no access to benefits if take Commuted Value) Must be enrolled in plan prior to retirement

Hospital: Semi-private room rate limited to 180 days per injury or illness

30% of cost Surviving dependents covered, lifetime for spouse, until completion of school (up to age 25) or until age 21 for children

Same cost share as retiree

University B Offered to all

retirees 10 consecutive years of service prior to retirement

Out-of-Country: Lifetime maximum of $10,000 Other: Same as actives

None Surviving dependents

covered, lifetime for spouse, until age 25 for children

Paid by the employer University C Offered to all

retirees No specific criteria (other than retirement), Must have participated in the benefit plan immediately prior retirement

80% reimbursement after age 65 No vision care

30% of the Medical's cost plus 100% of the Hospital's cost

Surviving dependents covered, lifetime for spouse

60% paid by the employer University D Offered to all

retirees 10 years of continuous service and immediately begin receiving a pension

Benefits are the same as active employees, except: Out-of-Country: 60 days maximum covered per trip, lifetime maximum of $80,000, $40,000 of which can used towards health expenses incurred outside of province, if retiree resides outside of Ontario, but within Canada

None

(Premiums cost-shared with retirees who were part-time immediately before

retirement)

(33)

4. Summary of Plan Provisions

McMaster University

December 17, 2010 30 Employer Medical Benefits Continued for Retirees Eligibility Requirements

Main Differences in Benefit Provisions Retiree Contributions Surviving Dependent Coverage

University E Offered to all

retirees 10 years of service Out-of-Country: 60 days maximum covered per trip None Surviving dependents covered, lifetime for qualified dependents Paid by the employer University F Offered to all

retirees

No specific criteria (other than retirement)

None Retiree: Age 55 with less

than 4 years of service: 100% of cost

Age 55 with 4 to 7 years of service: 32% of cost

Age 55 with 8 or more years of service: None

Surviving dependents covered, lifetime for qualified dependents Age 55 with less than 4 years of service: 100% paid by the surviving dependent,

(34)

4. Summary of Plan Provisions

McMaster University

University G Offered to all

retirees No specific criteria (other than retirement) Hospital: Covered at 100% for semi-private room rate, Private room is limited to $5,000 per year

Prescription Drugs: Covered at 100% with a deductible per prescription of $1

Paramedical: Covered at 100%, annual maximum of $300 for each of the following services: Chiropractors, Osteopaths, Podiatrists, Massage therapists limited to $7 per visit up to a maximum of 12 visits per year; Psychologists: $35 for the first visit and $20 per hour for each of the subsequent visit up to a maximum of $200 per year; Physiotherapists, Speech Therapists: annual maximum of $200

Medical services: Covered at 100%, Accidental dental benefits, Ambulance transportation to the nearest hospital limited to $100 per trip, Prosthetic appliances and durable equipment, Private Duty Nursing benefits up to $10,000 per year

Out-of-Country: Covered at 100% within the first 180 days per trip, maximum of $1,000,000 per year for emergencies and $50,000 for referrals services

100% of cost

A Retiree Health Care Premium Reduction Fund has been established with a core amount of money Each year, depending on the investment yield on the core fund, the eligible retirees in the plan get a premium reduction on the monthly amount they pay out of pocket for coverage (This sum fluctuates according to the

investments and in some years there is no money)

Surviving dependents covered, lifetime for spouse, until age 25 if in school full time for children

(35)

4. Summary of Plan Provisions

McMaster University

University H Offered to all

retirees From age 55 to age 65, members have the option to continue to participate in the same program as active members, if they assume the cost of premiums

At age 65, members have the option to participate in hospital room coverage with the regular carrier, and can obtain EHC coverage through the program of the Municipal Retirees Organization of Ontario (MROO), the Manulife Follow Me program, or the Ontario Retiree Teachers Insurance Plan (RTIP) program if they assume the cost of premiums (they can use the HSSA to cover the cost)

University provides a Health Spending Account to retirees equals to an annual amount of $1,200 as at 2010 and $1,250 as at 2011

Before age 65: Same as active benefits

After age 65: Manulife Follow Me program is the most popular (Enhanced option valued and described below) Drugs: 80%, up to $800 per year, mandatory generic substitution, no maximum dispensing fee

Vision: Eye exams up to $50 every 24 months, Glasses, contact lenses and laser eye surgery, up to $200 every 24 months

Paramedical: Acupuncturists, Chiropractors, Osteopaths, Podiatrists, Naturopaths, Chiropodists, Registered Massage Therapists, Physiotherapists: $600 combined maximum per year; Psychologists: $80 first visit, $65 subsequent visits, 10 visit per year; Speech Therapists: $65 first visit, $45 subsequent visits, 10 visit maximum per year Medical Services & Supplies: Private duty nursing, Prosthetic Appliances & Durable medical equipment: $750 for year 1, $1,250 for year 2, then $2,500 for each, Accidental dental, Ambulance, Hearing aids: $300 every 5 years, Orthotics: $225 per year

Hospital: Semi-private room up to $175 per day No dental benefits

$200,000 lifetime maximum

100% of cost, but HSA may

(36)

4. Summary of Plan Provisions

McMaster University

Dental

Employer Eligibility Annual

Deductibles Co-pay Amounts Annual Dental Maximum

Fee Schedule Lifetime Ortho Maximum

Employee Contribution

University A Date of hire

May opt-out at employee’s discretion No deductible Diagnostic: 100% Minor restorative: 100% Endodontic: 100% Periodontic: 100% Dentures: 67% Major restorative: 67% Adult orthodontic: 67% Child orthodontic: 67%

$2,500 Previous year provincial dental fee guide

Specialist fee guide: Expenses are limited to the general practitioner’s dental fee guide

Recall exam: One every 9 months

$2,500 20% of cost

University B Date of hire

Cannot opt out No deductible Diagnostic: 100% Minor restorative: 85% Endodontic: 85% Periodontic: 85% Dentures: 70% Major restorative: 70% Adult orthodontic: 50% Child orthodontic: 50% $2,500 for Denture and Major restorative services

Current year provincial dental fee guide

Specialist fee guide: But expenses are limited to a % (e.g., 120%) of the general practitioner’s dental fee guide

Recall exam: One every 9 months (6 months for children under age 15)

(37)

4. Summary of Plan Provisions

McMaster University

Employer Eligibility Annual Deductibles

Co-pay Amounts Annual Dental Maximum

University C Date of hire

May opt-out if equivalent coverage through spouse’s plan No deductible Diagnostic: 100% Minor restorative: 100% Endodontic: 100% Periodontic: 100% Dentures: 75% Major restorative: 75% Adult orthodontic: 50% Child orthodontic: 50%

$3,000 Prior year provincial dental fee guide

$2,000 None

University D Date of hire

Cannot opt out (only part-time employees may opt-out of plan) No deductible Diagnostic: 80% Minor restorative: 80% Endodontic: 80% Periodontic: 80% Dentures: 50% Major restorative: 50% Adult orthodontic: 50% Child orthodontic: 50% $1,927 for Basic services and $2,904 for Major services

Prior 2 years provincial dental fee guide

$2,904 None

University E Date of hire

May opt-out if equivalent coverage through spouse’s plan No deductible Out-of-pocket maximum: Single: $450 Family: $900 Applied to Health & Dental combined Diagnostic: 85% Minor restorative: 85% Endodontic: 85% Periodontic: 85% Dentures: 80% Major restorative: 80%

Unlimited Current year provincial dental fee guide

(38)

4. Summary of Plan Provisions

McMaster University

Employer Eligibility Annual Deductibles

Co-pay Amounts Annual Dental Maximum

University F Date of hire

May opt-out if equivalent coverage through spouse’s plan No deductible Diagnostic: 100% Minor restorative: 100% Endodontic: 100% Periodontic: 100% Major restorative: 80% Adult orthodontic: 50% Child orthodontic: 50% $1,000 for major restorative

Previous year provincial dental fee guide

$2,500 23% of cost

University G Date of hire

Cannot opt out No deductible Diagnostic: 80% Minor restorative: 80% Endodontic: 80% Periodontic: 80% Dentures: 80% Major restorative: 80% Adult orthodontic: 50% Child orthodontic: 50%

Unlimited Current year provincial dental fee guide

$3,000 None

University H Date of hire

Can opt out if covered under another plan (then provided with $240 in HSSA) No deductible Diagnostic: 80% Minor restorative: 80% Endodontic: 80% Periodontic: 80% Optional coverage (valued): Dentures: 50% Major restorative: 50% Adult orthodontic: 50% Child orthodontic: 50% $1,500 for Denture and Major restorative services

Previous year provincial dental fee guide

(39)

4. Summary of Plan Provisions

McMaster University

Dental Benefits for Retirees

Employer Dental Benefits Continued for Retirees

Eligibility Requirements Main Differences In Benefit

Provisions Retiree Contributions Surviving Dependent Coverage University A Offered to all retirees Must have 10 years of pensionable

service with the university (if hired after July 2007)

Must draw pension benefit immediately upon retirement (no access to benefits if take Commuted Value)

Must be enrolled in plan prior to retirement

No orthodontics 50% of cost Surviving dependents covered, lifetime for spouse, until completion of school (up to age 25) or until age 21 for children Same cost share as retiree

University B Offered to all retirees 10 years of consecutive service

immediately prior to retirement Do not provide coverage for implants None Surviving dependents covered, lifetime for spouse, until age 25 for children

Paid by the employer

University C No coverage N/A N/A N/A N/A

University D No coverage N/A N/A N/A N/A

University E Offered to all retirees 10 years of service None None Surviving dependents

(40)

4. Summary of Plan Provisions

McMaster University

Eligibility Requirements Main Differences In Benefit Provisions

Retiree Contributions

Surviving Dependent Coverage

University F Offered to all retirees No specific criteria (other than

retirement) None Age 55 with less than 4 years of

service: 100% of cost Age 55 with 4 to 7 years of service: 23% of cost Age 55 with 8 or more years of service: None Surviving dependents covered, lifetime for qualified dependents Age 55 with less than 4 years of service: 100% paid by the surviving dependent, Age 55 with 4 to 7 years of service: 23% paid by the surviving dependent, Age 55 with 8 or more years of service: 100% paid by the employer

University G Offered to all retirees No specific criteria (other than

retirement) Major services: Covered at 50% _{Orthodontics: Lifetime} maximum of $1,500

Recall exam: Twice every 12 months

(41)

4. Summary of Plan Provisions

McMaster University

Eligibility Requirements Main Differences In Benefit Provisions

Retiree Contributions

Surviving Dependent Coverage

University H Offered to retirees

under age 65 only From age 55 to age 65, members have the option to continue to participate in the same program as active members, if they assume the cost of premiums

At age 65, members have the option to participate in hospital room coverage with the regular carrier, and can obtain Dental coverage through the program of the

Municipal Retirees Organization of Ontario (MROO), the Manulife Follow Me program, or the Ontario Retiree Teachers Insurant Plan (RTIP) program if they assume the cost of premiums (they can use the HSSA to cover the cost)

Before age 65: Same as active benefits

After age 65: Manulife Follow Me program is the most popular (No dental benefits offered in the Enhanced option)

(42)

4. Summary of Plan Provisions

McMaster University

Group Life Insurance

Employer Eligibility Basic Employee Life Coverage Basic Dependent Life

Coverage Basic Employee AD&D Coverage Employee Contribution University A Date of hire Choice between 200% or 300% of

earnings, maximum of $1,300,000

4. Summary of Plan Provisions

McMaster University

Employer Eligibility Basic Employee Life Coverage Basic Dependent Life Coverage

Basic Employee AD&D Coverage

Employee Contribution University E Date of hire 200% of earnings, minimum of

$50,000

Optional coverage Optional coverage 100% of cost for coverage above $50,000

Basic Dependent Life and Basic Employee AD&D: 100% of cost University F Date of hire 200% of earnings, maximum of

$1,000,000

University G Date of hire 300% of earnings, maximum of $400,000

No coverage Same as basic employee life None

University H Date of hire Single: 100% of earnings

Employee with dependent(s): 200% of earnings, maximum of $150,000

No coverage No coverage 100% of cost for

(44)

4. Summary of Plan Provisions

McMaster University

Life Insurance for Retirees

Employer Life Coverage

Continued for Retirees Eligibility Requirements Life Insurance Amount Retiree Contributions

University A No coverage N/A N/A N/A

University B Offered to all retirees Retired from faculty appointment with 10 years of consecutive service

$5,000 None

University C Offered to all retirees Must have participated in the benefit plan while employed

100% of earnings in effect at retirement, reducing at age 66 and subsequently every year to 80%, 60%, 40%, 20% and 10% respectively (minimum of $3,000)

The 10% level of coverage reached at age 70 remains in effect for the rest of retiree's life

45% of cost until age 65 None after age 65

University D Offered to all retirees 10 years of continuous service and immediately begin receiving an immediate pension

$4,600 None

University E Offered to all retirees 10 years of service The lesser of: 50% of Basic Life Insurance prior to retirement or $15,000

None

University F No coverage N/A N/A N/A

University G No coverage N/A N/A N/A

University H Offered to all retirees No specific criteria (other than

retirement) Less than 10 years of service: $2,000 _{10 or more years of service: 10% of earnings,} minimum of $2,000, maximum of $5,000

(45)

4. Summary of Plan Provisions

McMaster University

Short Term Disability

Employer Type of STD Plan Eligibility Elimination

Period STD Benefit Employee Contributions

University A Benefits are paid as part of regular payroll subject to usual deductions (salary continuance)

Date of hire No waiting period 90 calendar days at 100% of weekly

earnings None

University B Benefits are paid as part of regular payroll subject to usual deductions (salary continuance)

Date of hire No waiting period 26 weeks at 100% of weekly earnings None

University C Benefits are paid as part of regular payroll subject to usual deductions (salary continuance)

University D Benefits are paid as part of regular payroll subject to usual deductions (salary continuance)

earnings None

University E Benefits are paid as part of regular payroll subject to usual deductions (salary continuance)

University F Benefits are paid as part of regular payroll subject to usual deductions (salary continuance)

Date of hire No waiting period 26 weeks (180 calendar days) at 100%

of weekly earnings None

University G Benefits are paid as part of regular payroll subject to usual deductions (salary continuance)

earnings None

University H Benefits are paid as part of regular payroll subject to usual deductions (salary continuance)

(46)

4. Summary of Plan Provisions

McMaster University

Long Term Disability

Employer Eligibility Elimination Period LTD Benefit Indexation Employee

Contributions University A Date of hire 90 calendar days 66 2/3% of monthly earnings, maximum of $6,000

monthly benefit

(A top-up of 13 1/3% of monthly earnings is administered during the first four months)

All-source maximum: 85% of pre-disability earnings

Bonus not included in earnings definition

Definition of LTD: Own occupation for first 24 months from onset of disability, any occupation thereafter

None 33.3% of cost

The 13 1/3% benefit top-up portion is employer paid (via EI reduction qualification)

University B Date of hire 26 weeks 75% of monthly earnings, maximum of $7,000 monthly benefit

100% of CPI, maximum of 2%

(47)

4. Summary of Plan Provisions

McMaster University

Contributions University C Date of hire 26 weeks 68% of the first $1,000 plus 60% of the next $833.33

plus 50% of the remaining monthly earnings, maximum of $5,000 monthly benefit (for general support staff, effective Jan.1/08, maximum of $8,500 monthly benefit)

100% of cost

University D Date of hire 26 weeks 85% of monthly net earnings, maximum insured salary $153,940, non taxable

100% of cost

University E Date of hire 15 weeks 70% of the first $6,667 monthly earnings plus 65% of the next $3,333 monthly earnings, maximum of $6,834 monthly benefit

Bonus not included in earnings

100% of CPI,

(48)

4. Summary of Plan Provisions

McMaster University

Contributions University F Date of hire 26 weeks 66 2/3% of the first $4,167 monthly earnings plus 60% of

the remaining monthly earnings, maximum of $20,000 monthly benefit

100% of cost

University G Date of hire 105 calendar days 66 2/3% of the first $2,500 monthly earnings plus 50% of the next $4,500 monthly earnings plus 40% of the remaining monthly earnings, maximum of $10,000 monthly benefit

Definition of LTD: Own occupation only

100% of CPI,

maximum of 3% 100% of cost

University H Date of hire 17 weeks (119 days) Basic: 60% of monthly earnings, maximum of $8,500 monthly benefit (valued)

Effective January 1, 2008:

Option 1: 64% of monthly earnings Option 2: 68% of monthly earnings

(49)

4. Summary of Plan Provisions

McMaster University

Tuition Fee Assistance for Dependents

Employer Eligibility Maximum Amount

attributed to dependent Annual Fund Benefit ends Other relevant information University A Date of hire

Dependent children and spouses of full-time, part-full-time, probationary, retired and long term disabled full-time and part-time members Only full-time students are eligible

$2,000 per semester to a

maximum of 8 semesters University contributes 0.74% of the total salary budget for that academic year for regular full-time and reduced workload members into a fund

Balances at the end of the year are carried forward

The total budget dollar amount for 2010-2011 school year is $717,000 for faculty members

Available after

retirement Tenable only at the University

University B 3 years of

continuous service

Bursaries valued at $130 per unit up to a limit of $3,900 per academic year based on 30 units or more

Also eligible for spring/summer term coverage of $130 per unit

For FT graduate students, the bursary is $1,950/term in 2010-2011 school year

For 2005/2006: $1,298,669 for all employees

Available after retirement

Tenable only at the University