Letter of Understanding # 7 Paid Up Life Insurance for Retired or Terminated Employees (PAID UP LIFE INSURANCE PLAN)

Master Agreement Between the Government of the Province of Alberta and the Alberta Union of Provincial Employees

LETTER OF UNDERSTANDING #7
Paid Up Life Insurance for Retired or Terminated Employees
(PAID UP LIFE INSURANCE PLAN)

BETWEEN:

THE CROWN IN RIGHT OF ALBERTA
(The Employer)

- and -

THE ALBERTA UNION OF PROVINCIAL EMPLOYEES
(The Union)

1.	The Paid Up Life Insurance Plan will continue to operate as currently established until March 31, 2012, after which the policy of insurance (43932GL) will not be renewed.
2.	Eligible Employees who terminate or retire on or before March 31, 2012 will receive a paid up life insurance certificate.
3.	New Employees who commence on or after April 1, 2012 are not eligible for the Paid Up Life Insurance Plan.
4.	In accordance with the current plan rules for determining eligibility, Employees who have not retired or terminated as of March 31, 2012 will be eligible for a paid up life insurance certificate based on their status and length of continuous service as of March 31, 2012. The certificate will be issued on termination or retirement of the Employee.
	(a)	Employees with less than 10 years of continuous government service as of March 31, 2012 who (at a future date) retire immediately into the Public Service Pension Plan (PSPP) will receive a $4,000 certificate.
		i.	Employees who are over the age of 70 on March 31, 2012 and at age 70 had less than 10 years of continuous government service will receive a $4,000 certificate.
	(b)	Employees who have between 10 and less than 20 years of continuous government service as of March 31, 2012 will receive a $5,000 certificate when they terminate or retire;
		i.	Employees who are over the age of 70 on March 31, 2012 and at age 70 had between 10 and less than 20 years of continuous government service will receive a $5,000 certificate.
	(c)	Employees who have 20 years or more of continuous government service as of March 31, 2012 will receive a $7,000 certificate when they terminate or retire.
		i.	Employees who are over the age of 70 on March 31, 2012 and at age 70 had over 20 years of continuous government service will receive a $7,000 certificate.
5.	The status of the reserve fund will be monitored and any future funding requirements until the plan has fully paid out the accrued benefits will be funded from core life insurance premiums. Any surplus remaining when benefits have been fully paid out will remain part of the core life insurance plan. Dated this 27th day of January 2022.

Letter of Understanding # 7 Paid Up Life Insurance for Retired or Terminated Employees (PAID UP LIFE INSURANCE PLAN)

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