To all participating Retirees, The benefits landscape has changed at a rapid pace. Healthcare costs are continuing to increase and have been for years. The cost of goods and services, as well as health, drugs and dental claims, continue to rise with or above inflation. For more than 10 years, a number of changes were implemented to the Local 793 Life & Health Benefits Plan that increased coverage in areas members require the most. In that time period, the cost of Pay Direct to Retirees was not increased. Pay Direct […]
To all participating Retirees,
The benefits landscape has changed at a rapid pace. Healthcare costs are continuing to increase and have been for years. The cost of goods and services, as well as health, drugs and dental claims, continue to rise with or above inflation.
For more than 10 years, a number of changes were implemented to the Local 793 Life & Health Benefits Plan that increased coverage in areas members require the most. In that time period, the cost of Pay Direct to Retirees was not increased.
Pay Direct costs to Retirees are 2/3 subsidized by Active Members.
Below is a list of those Plan improvements (See Table 1).
[Table 1] BENEFIT PLAN IMPROVEMENTS OVER THE PAST 10 YEARS

As a result of rising cost of benefits under the Active and Retiree Plans (See Table 2), our Actuary has advised that in order to maintain the Plan going forward, an increase will be required at this time.
[Table 2] COST DIFFERENTIAL PER QUARTER

To ensure the sustainability of the Plan and to enable the Trustees to maintain the affordability of the excellent benefits coverage provided to members well into the future, changes to the current Pay Direct structure are necessary.
Effective October 1, 2022, the following changes will be made to the Retiree Pay Direct structure and will remain in place over a three-year period (See Table 3), with similar increases in 2023 and 2024 to spread the increase over that three-year period. Annual increases will be made in line with inflation after the third-year period, as it applies to the Local 793 Life & Health Benefits Plan.
[Table 3] MONTHLY PAY DIRECT INCREASE EFFECTIVE OCTOBER 1st, 2022 (4th QUARTER)

A new Pre-Authorization Payment form (PAP) will be mailed to members in late July prior to the new fourth quarter (Q4) payment coverage for October, November, and December 2022.
The Local 793 Life & Health Benefits Plan has not increased the cost of health benefits for more than 10 years and the Trustees understand this news comes at a time when members are experiencing cost increases elsewhere. Unfortunately, these same increases also directly affect the Life & Health Benefits Plan and the ability to provide meaningful benefits to members well into the future.
If you still have questions, contact the OEBAC Member Call Centre at 1-844-793-1919 or info@oebac.org
Joe Redshaw
Executive Director
Operating Engineers Benefits Administration Corporation (OEBAC)