Mr. Chairperson (Gerry McAlpine): The next set of Estimates that will be considered by this section of the Committee of Supply are the Estimates of Employee Benefits and Other Payments. The Civil Service Estimates have been concluded. We are now on Employee Benefits and Other Payments.
Ms. Becky Barrett (Wellington): I have some factual questions dealing with some of the elements of this. I am dealing with pages 12 and 13.
Mr. Chairperson: Excuse me. Before we do proceed, are there any opening statements that the minister wishes to make? No? None.
Ms. Barrett: Is Other Salary Related Benefits, which is $3.5 million here, as a result of the Auditor's recommendation?
Mr. Chairperson: I just want to read this into the record. We are now on Employee Benefits and Other Payments, 6.1. under (a) Civil Service Superannuation Plan.
Item (a) Civil Service Superannuation Plan $43,135,000, am I to assume that item is passed? The honourable member for Wellington, the reason for the clarification is that you are asking a question under (b) Other Salary Related Benefits $3,500,000. So this item (a) $43,135,000, is that item passed? The item is accordingly passed.
6.1(b) Other Salary Related Benefits $3,500,000. A question was posed by the honourable member for Wellington to the minister.
Hon. Harold Gilleshammer (Minister charged with the administration of The Civil Service Act): The answer is no.
Ms. Barrett: How come there was nothing in it from '97-98? Where did it come from or where was it before?
Mr. Gilleshammer: I am told it would have been within the departmental salary lines, and this year it has been broken out to display it in this manner.
Ms. Barrett: That is fine then.
Mr. Chairperson: 6.1 Employee Benefits and Other Payments (b) Other Salary Related Benefits $3,500,000--pass.
6.1(c) Workers' Compensation Board (1) Assessments re: Accidents to Government Employees $3,698,000.
Ms. Barrett: Could the minister explain the three figures here?
Mr. Gilleshammer: I am sorry. Can you clarify that?
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Ms. Barrett: The $3,698,000, I guess it is to the plus, and then the $3,683,000 liability, clearly, that is leaving a $15,000--
Mr. Gilleshammer: If the member is on page 12 under the Workers' Compensation Board, we budgeted $3,698,000. We recovered $3,683,000, and the difference is $15,000 which is a cost to this appropriation.
Mr. Chairperson: Item 6.1. Employee Benefits and Other Payments (c) Workers' Compensation Board (1) Assessment re: Accidents to Government Employees $3,698,000--pass; (2) Less: Recoverable from other appropriations ($3,683,000). Item 6.1.(d) Canada Pension Plan $16,457,600.
Ms. Barrett: There is about a $2-million, not quite a $2-million increase this year over last. What is that as a result of?
Mr. Gilleshammer: That is as a result of the federal government setting new rates, and we have a statutory requirement to pay that.
Mr. Chairperson: Item 6.1.(d) Canada Pension Plan $16,457,600--pass. Item 6.1.(e) Employment Insurance Plan $20,391,300.
Ms. Barrett: Can the minister explain why there is a reduction in this item?
Mr. Gilleshammer: Yes, the statutory requirements of the federal government, when they lower the rates we respond accordingly.
Ms. Barrett: Lower the rates. Which rates?
Mr. Gilleshammer: I believe we are talking about employment insurance which used to be unemployment insurance. They changed the name and they lowered the rates. CPP went up and employment insurance went down.
Ms. Barrett: So I pay and the government on my behalf pays more into the Canada Pension Plan line, and I pay and the government on my behalf pays less into the employment insurance plan.
Mr. Gilleshammer: That is correct.
Ms. Barrett: Both of these are, as a result, solely of federal government changes.
Mr. Gilleshammer: That is correct.
Ms. Barrett: Well, this is one place where I cannot argue about the provincial government's responsibility in these two matters, so I will not.
Mr. Chairperson: Item 6.1.(e) Employment Insurance Plan $20,391,300--pass; (f) Civil Service Group Life Insurance $1,844,000--pass. Item 6.1.(d) Dental Plan $5,092,800.
Ms. Barrett: Are all civil servants eligible for the dental plan, or is it based on the--it is based on the collective agreement, right? So not every civil servant is given this same coverage for dental plans.
Mr. Gilleshammer: The member is right. It is based on the collective agreement, and I point out that there is a waiting period to participate.
Ms. Barrett: Can the minister tell me what the administrative fee is that is paid to Blue Cross?
Mr. Gilleshammer: There is an administrative charge per claim that goes to the carrier, and I believe it is a percentage. We do not have that number here, but we could clarify that for the member.
Ms. Barrett: I would appreciate that. That per-claim percentage would be very helpful.
Mr. Chairperson: Item 6.1.(g) Dental Plan $5,092,800--pass. 6.1.(h) Long Term Disability Plan $2,873,900.
Ms. Barrett: Yes, again, in this as well as the Dental Plan, the Civil Service Commission reimburses the plan carrier for payments made to government employees under the plan as well as an administrative fee and expenses. So this is different from the Dental Plan. What are the expenses that the Civil Service Commission reimburses to the plan carrier?
Mr. Gilleshammer: Maybe the best way to explain it with the Dental Plan, which is usually based on a visit or two, there is an administration fee that is charged back and goes to the carrier. With the Long Term Disability Plan, there is not only an administrative fee but also expenses, because there is more consultation involved with the individual involved, and other expertise has to be brought to bear on that specific case.
Ms. Barrett: There is one other difference, as I read it again, which I had not noticed before between this and both the Dental Plan and the Ambulance and Vision Care plans, and that is the phrase: or as provided by contract between the government and an insurance company. So it is not only negotiated under various collective agreements but as provided by contract. Can the minister tell me who would be covered by that contract and what is the insurance company's name?
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Mr. Gilleshammer: For the Long Term Disability Plan, the carrier is Great-West Life. For the Dental Plan it is Blue Cross. So there are agreements that are negotiated on behalf of government and employees with those organizations.
Ms. Barrett: What employees would be covered by a contract between the government and an insurance company? Would that be employees that are not covered under collective agreements? What does that mean?
Mr. Gilleshammer: The contract is for services and the contract is on behalf of government and the employees.
Ms. Barrett: Okay. I see.
Mr. Chairperson: Item 6.1.(h) Long Term Disability Plan $2,873,900--pass. 6.1.(j) Ambulance and Hospital Semi-Private Plan $234,000.
Ms. Barrett: There is a hundred-thousand-dollar increase here. What is the increase due to?
Mr. Gilleshammer: I am told that the key factor in the difference is volume.
Ms. Barrett: Volume, that means the government is sending more people to hospital as a result of its policies?
Mr. Gilleshammer: I think it would be more proper to say that there are more people making use of the plan.
Ms. Barrett: Almost double making use of the plan. Is that due to an aging civil service? What are the reasons for this? There must be something upon which this estimate is based to almost double this figure.
Mr. Gilleshammer: It is pointed out to me that the plan is not only for government civil servants, but also the families are covered by the plan. The Civil Service does its best to estimate the costs that will be required and, as a result of internal discussions and estimates, that is the number that comes up. Certainly the demographics would be a part of that.
Ms. Barrett: We have only the Estimates from last year and the Estimates for this year. I am assuming then that perhaps one of the elements that went into the increase is the actual for the year ended March 31, 1998. Is that an element that went into the discussion of the Estimates for this next year?
Mr. Gilleshammer: Well, the member is absolutely correct that the previous year's experience is taken into consideration.
Mr. Chairperson: 6.1 Employee Benefits and Other Payments (j) Ambulance and Hospital Semi-Private Plan $234,000--pass; (k) Vision Care $1,052,400.
Ms. Barrett: I am making a big assumption here, but I am assuming, because there was nothing last year and over a million this year, that this is new program. I should know this, I am probably covered by this.
Mr. Peter Dyck, Acting Chairperson, in the Chair
Mr. Gilleshammer: Well, the member is right on her assumption and wrong on her second assumption. I thought maybe that under the Civil Service Commission the member would have asked about the master agreement that was negotiated between the MGEU and government, am very proud to have signed that Mr. Olfert a number of months ago. It is a three-year agreement from March 29, 1997, to March 24, 2000. It did call for a general pay increase in each of the years of the agreement, and it also had a lump-sum signing bonus of 1.5 percent which was paid out at the end of 1997. This, of course, was payable to all employees on staff at the date of the signing of this.
It also made some reductions in the workweek, a reduction program that was very popular within the civil service over the last number of years. In year one, there will be 10 days of workweek reduction; in year two, there will be five; and in year three, it will disappear. Part of the negotiations this year brought into play a Vision Care plan, and it will be implemented on July 1, 1998. That is why I said that the member was right in her first assumption and wrong in her second assumption, that she will be covered after July 1 along with the rest of the civil servants. The plan, the Vision Care plan, will provide coverage for employees and dependants. The eligibility criteria will be consistent with those applicable to the dental plan. Co-insurance provisions will apply with payment of 80 percent of eligible expenses by the plan and 20 percent by the employee. The plan will cover up to a $150 payment every 24 months per person. The maximum will increase to $190 effective April 1, 1999.
Coverage applies to prescription lenses and eye examination. For eye exams, the fee guide will be the optometrists' suggested fee guide. The fee guide will be the actual fee guide for each year of the agreement. So, again, the member is correct, this was not in existence in the previous year but will come into effect on July 1 as a result of that master agreement between the government and the MGEU.
The Acting Chairperson (Mr. Dyck): Moving on to 6.1. Employee Benefits and Other Payments (k) Vision Care $1,052,400--pass; (m) Levy for Health and Post-Secondary Education $14,169,900--pass; moving to subtotal (n) Less: Recoverable from other appropriations ($62,115,900)--(pass).
Resolution 6.1: RESOLVED that there be granted to Her Majesty a sum not exceeding $46,650,000 for Employee Benefits and Other Payments for the fiscal year ending the 31st day of March, 1999.
This concludes the Estimates of Employee Benefits and Other Payments.
The next set of Estimates that will be considered by this section of the Committee of Supply are the Estimates of the Department of Family Services.
Shall we briefly recess to allow the minister and the critics the opportunity to prepare for the commencement of the next set of Estimates.
The committee recessed at 4:28 p.m.
The committee resumed at 4:40 p.m.