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Public Service Health Care Plan contract awarded to Canada Life

By Pay, Pension and Benefits

Last week, Treasury Board posted that the next contract to administer the Public Service Health Care Plan (PSHCP) had been awarded to Canada Life following a competitive process that began in 2018.

The contract will take effect July 1, 2023, following a transition period.

Treasury Board said that transitioning will be a, “complex project and an opportunity to streamline PSHCP processes. The new contract will allow the plan to be more responsive to the changing administrative health care needs of plan members and innovations in the health care industry.”

The previous contract was awarded to Sun Life in 2009.

Impact on cost for public servants

While work behind the scenes may be intensive and complex, Treasury Board reassured that there won’t be any impact on cost for plan members:

“A new plan administrator will have no impact on the cost of the PSHCP for plan members or to the benefits available to them and their families. Contribution rates are approved annually by the President of the Treasury Board, and plan changes are negotiated at the PSHCP Partners Committee, a collaborative forum comprised of Bargaining Agent, Employer and Pensioner representatives.”

Treasury Board said that, “this procurement process is entirely separate and forms part of the life cycle of any public service benefit plan, and that the award of the new contract to Canada Life simply changes who administers the PSHCP and adjudicates claims, starting July 1, 2023.”

Action items for public servants

Treasury Board said that in terms of next steps:

  • Plan members will receive regular updates on the transition progress;
  • Public servants will be asked to take a few simple actions leading up to the move to the new administrator and Treasury Board asks public servants to respond to these requests; and
  • Public servants keep their contact information current with Sun Life to help ensure that there is no interruption in PSHCP coverage when the new contract starts on July 1, 2023.

Other links:

Treasury Board information notice: New contract awarded to administer the Public Service Health Care Plan