Canada Life postpones the takeover of the Pensioners' Dental Services Plan after retiree concerns
Retired federal government workers have mixed emotions about Canada Life's upcoming takeover of their dental plan, as reported by CBC News.
The National Association of Federal Retirees expressed relief that the takeover of the Pensioners' Dental Services Plan, which covers former public servants, has been postponed.
The association's vice-president, Hélène Nadeau, mentioned that Canada Life was initially set to take over the plan from Sun Life next month but will now do so in November.
This delay comes after members of the association raised concerns about Canada Life's recent performance and requested the Treasury Board of Canada to delay the takeover.
Canada Life has faced issues such as delayed claims processing while administering the Public Service Health Care Plan (PSHCP), which covers active and retired government employees. Canada Life took over the PSHCP last year.
“We were not confident that adding [the retirees' dental plan] to that plan administrator would result in good service,” Nadeau said. The association requested the delay in early 2024 and received confirmation in April.
The group has stressed the need for Canada Life to accommodate older plan members who are not comfortable online by allowing them to file claims on paper and communicate by phone. They have also expressed concerns about whether Canada Life has sufficient staff to handle the workload.
“We're not completely reassured that it's going to be fine, but we are happy [with] what we're seeing has been put in place at this time,” Nadeau said. “And we're hoping that Canada Life really learns from the previous experience.”
Since 1987, Canada Life has been the administrator of dental benefits for federal public servants. In 2023, after a competitive process, Canada Life was selected to continue administration for active employees, and to administer the dental plan for retired public servants.
“To improve the experience for all plan members, accelerate program integration, and minimize potential disruptions, The Government of Canada accepted Canada Life’s advice to bring the implementation dates of these two plans together,” said Canada Life in an email to Benefits and Pension Monitor.
“Canada Life continues to work with the government to ensure dental plan administration reflects industry best practices, so members have access to the care they need, when, and where they need it.”
Canada Life stated in an email that it is collaborating with the federal government to ensure the dental plan administration meets industry best practices so that “members have access to the care they need, when and where they need it.”
The office of Treasury Board President Anita Anand, in an emailed statement, said the decision to delay the start date was made to minimize disruption for plan members and dental providers during the transition.
The Treasury Board Secretariat added that Canada Life “already” has trained staff in place, which should facilitate the transition and ensure “minimal impact” on current plan participants.
