Pensioners’ Dental Services Plan History
The FSNA long-sought government-sponsored dental plan for federal pensioners was set to provide coverage as of 1 January 2001.
“It took FSNA many years of research, persuasion, lobbying, and sustained drive to convince the government of the justice of dental plan insurance for pensioners,” said Past President Claude Edwards. “While there were others that helped to persuade the government to provide this benefit, it was FSNA’s unwavering efforts that made it possible for pensioners to be covered by a dental plan similar to the one offered to federal employees.”
The existing employee dental plan was attained through collective bargaining in 1985, but was not made available to pensioners. Prior to its implementation in 1987, wage and price controls had been in effect. In accordance with the Public Sector Compensation Restraint Act, the government imposed ceilings of 6% for 1982-83 and 5% for 1983-84 on Public Service, Canadian Forces, and RCMP wage increases. As a result of a legal challenge, the Federal Court decided that certain allowances that had been frozen by the government should have been treated as wages and allowed to increase by 6% and 5%, a judgement that was later upheld by the Federal Court of Appeal. In lieu of adjustments to these allowances, the government and the unions negotiated an out-of-court settlement. This resulted in a major change to the Public Service Dental Plan, including the elimination of employee premiums (employer’s contribution went from 50% to 100%).
Between the time the Restraint Act was imposed in June 1982 and the time the revised plan was introduced in June 1988, 50,222 employees retired from the Federal Public Service. They never received any financial benefit from this Federal Court of Appeal decision and subsequent out-of-court settlement between the union and the government.
Although there was merit in FSNA’s case, the financial climate that prevailed at the time was not favourable to the provision of dental benefits to pensioners. When it became apparent in the 90′s that the Government was moving to a balanced budget, and that the fiscal problems of the Government were lessening, FSNA redoubled its efforts to obtain this long-sought benefit for pensioners. This led to the February 1999 announcement of the Pensioners’ Dental Services Plan (PDSP).
All those in receipt of a pension under the Public Service, the Canadian Forces, or the Royal Canadian Mounted Police superannuation acts are eligible for coverage.
