Eyebrows have raised in military homes and SISIP offices recently over newspaper articles alleging the SISIP Financial Services' role in relation to the Canadian Forces (CF) Long Term Disability (LTD) insurance and the Accidental Death & Dismemberment (AD&D) coverage under the General Officers' Insurance Plan (GOIP). To that end, CF personnel deserve clarification, so here it is, pure and simple…

SISIP's Role

SISIP is the administrator of the above two employer-sponsored plans but it does not have governance of these plans as it does for optional term life insurance. It is the Treasury Board of Canada (TBC) that has governance of the plans. Neither SISIP nor Maritime Life, the insurer, nor the Chief of Defence Staff (CDS) can unilaterally effect change to the plans that are part of the CF compensation and benefits package just like pay and pension.

LTD Coverage

The LTD insurance plan provides an income replacement benefit regardless of whether a member is injured in the line of duty or not. Accordingly, a CF member would be entitled to LTD if eligible because of a military exercise or a car accident while on vacation. This application must be clearly separated from the Pension Act, administered by Veteran Affairs of Canada, which covers only members disabled in the line of duty.

The CF LTD is similar to the LTD plans of the Public Service (PS) and the RCMP. The LTD benefit formula, which combines other government benefit sources, is common and is the norm in public and private group LTD insurance plans. The CF LTD program guarantees 75% of pay to eligible CF claimants for service or non-service reasons combined with the member's pension (CFSA) and the disability benefits under the Pension Act (service disabilities only) and the CPP.

GOIP

With respect to the GOIP, this plan provides a basic life and LTD insurance benefit, plus an AD&D benefit to a maximum of $250,000, which is employer paid. This benefit package for colonels and generals is benchmarked to the benefit package of the Executive Category of the PS and senior officers of the RCMP to whom they compare for pay and benefits.

The LTD and the AD&D under the GOIP are not related except that they are both administered by SISIP Financial Services on behalf of TBC. They are the employer's insurance plans for CF personnel just like the RCMP and the PS.

Plans Payments

SISIP LTD became mandatory for CF personnel who enrolled on or after 1 April 1982. TBC pays 85% of the premiums while Regular Force members pay the remaining 15%. TBC pays 100% premiums for Reserve Force members. As a result, a Regular Force corporal standard pay incentive 4, pays $8.05/month while TBC pays $45.60/month of the total premiums.

SISIP and Maritime Life do not make any profit from the premiums collected for the LTD plan but they are paid a fee for their administration of the plan. If there is a surplus of premiums collected, the money stays in the plan to fund future deficits. The goal of the LTD plan is to break even.

SISIP has served CF members and their families for more than 30 years. Today, 18 offices across the country provide services to the military community. Besides life and disability insurance, SISIP also offers financial planning and counselling, personal financial education and the Canadian Forces Personnel Assistance Fund (CFPAF) programs.

The Department of National Defence is currently evaluating options to provide a lump-sum benefit payable to all CF personnel in the event of dismemberment. This is not a SISIP decision.

CF members who have concerns, or want to ensure that they understand exactly how their personal benefit plan works, are invited to contact a SISIP office or to visit the website at www.sisip.com.