The Manitoba Teachers Society Disability Benefits Plan

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The Manitoba Teachers SocietyDisability
Benefits Plan

• Presentation to the
• 2005
• Provincial Council
• May 27 2005

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Presentation Agenda
Annual Report from the Governance Board Actuarial
Valuation - Charly Pazdor Next Years Budget
3
Executive Summary

• Our 5 year recovery plan is on track
• We are satisfied with the operational and
  financial condition of the Plan
• Claimants report high levels of satisfaction with
  the Plans services
• We are concerned with claims growth
• We have introduced new programs to improve
  services and reduce claims

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Motions from the Board

• At the end of our presentations the Board will
  make the following motions
• To accept the Boards Annual report
• To accept the Actuarys and the Auditors reports
• To approve the 2005-2006 DBP Budget

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First some history on the Plan

• 1989 - The Society self-insured the Plan
• 1995 - Plan operations moved in-house
• 2001 - Governance Board established
• 2002 - Deficit hit 30.5 million (43)
• 2003 - 5 year recovery plan approved
• 2004 - TRAF change, teachers premiums reduced

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The 5 year recovery Plan September 1 2003 -
August 31 2008

• We increased premiums to 2.70 to create yearly
  operating budget surpluses that would be used to
  pay-down the deficit
• Premiums were later reduced to 2.30 due to
  changes in TRAF legislation
• This reduction in premiums did not affect the
  recovery plan

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5 year plan progress The Deficit is coming down.

• August 31 2002 - 30.5 million
• August 31 2003 - 25.3 million
• August 31 2004 - 12.7 million
• We are on track with our 5 year plan to resolve
  the deficit

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Governance Board Role

• The Board uses the Carver Policy Governance
  model to oversee the Plan
• The Board sets down Ends or long term goals and
  Means policies to set the course for the Plan
• The Board then evaluates the Plans operational
  performance against the Ends and Means policies

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Governance Board Activity

• Board members meet with Plan members to
  communicate on the Plan and gain feedback
• The Board meets regularly to discuss members
  feedback, track progress with the Ends and
  evaluate adherence to the Means
• We can report that we are satisfied with the
  operational and financial condition of the Plan

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Our Accountability Report to Provincial Council

• The Ends statements set a course for how the
  Board wants the Plan to operate
• We feel we have make significant progress
• We now want to report to you on our progress in
  achieving the Ends

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Ends Statements(our Long Term Goals)

• Consumers have excellent service and are treated
  with equity and fairness
• Members have a positive working environment
• Members have knowledge and confidence in security
  and integrity of a fully funded plan
• Members have access to services appropriate to
  their needs

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Goals 1 Evaluation of progress

• Consumers have excellent service
• Consumers are treated with equity and fairness
• Results of the first annual satisfaction survey
  of claimants was reported to the Board in
  January.
• The next group of slides, from a consultants
  report to the Board show that claimants reported
  high levels of satisfaction with the Plans
  services.

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(Unadjusted Findings)
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Goals 2 Evaluation of progress

• Members have a positive working environment
• The Plan has modified its operation and
  introduced new programs in an effort to reduce
  claims and the duration of claims and help
  members and divisions identify improved work
  environments
• Active case management
• Early Intervention Program
• Western Wellness Initiative

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Early Intervention Program

• Here are some excerpts from a recent presentation
  to the Louis Riel School Divisions
  administrators group
• These slides demonstrate how we are using the
  the program to affect workplace conditions for
  our members

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Early Intervention Program

• This program assists teachers/members who are
  currently working and who are struggling
  medically, vocationally or personally and need
  some form of medical or other intervention to
  help them to stay working and to avoid a
  disability claim.

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Why Early Intervention ?

• The emotional, vocational and financial cost to
  all stakeholders is enormous
• Stakeholders
• Teacher/Non-teacher
• School Division
• School community
• students
• parents
• Disability Benefits Plan/Case managers
• Association/Union Presidents, Executive, Staff
  Officers, EAP counselors

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Why Early Intervention?

• The longer an individual is off work, the more
  difficult it is to return the individual to the
  workplace (Joling, Janssen and Groot, 2004, p.
  44).
• The window of opportunity to bring an employee
  back to work successfully is within the first 30
  days (Dyck, 2002, p. 10)

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Why Early Intervention?

• Research and practical experience has shown that
  for employees who are absent from the workplace
• there is only a 50 chance that they will return
  to work after a six-month absence
• this declines to a 25 chance following a
  one-year absence, and
• this is further reduced to a 1 chance after a
  two-year absence (Dyck, 2002)

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What to do as an Employer/Administrator

• As front line administrators/leaders, you are
  in a prime position to recognize when there are
  changes in behavior in your staff (classroom,
  interaction with other staff members, students,
  parents)
• Keep in mind that illnesses have a wide range of
  symptoms. If the staff member is experiencing
  difficulties on the job, is often crying , is
  neglecting appearance, is reporting fatigue, is
  using more sick days THERE IS A PROBLEM!

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The Rule Out Rule

• In situations where the employees performance is
  deteriorating Rule out depression before
  Ruling in poor employee.
• (Wilkerson, Wilson, Joffe et all The
  Roundtable on Mental Health 2000)

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Early Intervention Activity

• At the end of April we had over 100 active EIP
  clients, 80 or so that are accessing rehab
  services
• 15 associations/divisions are actively
  participating in the program
• Case mangers will be approaching other
  associations and divisions next year to promote
  the program

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The Wellness Pilot Project
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The Western Wellness Project

• A cost-shared initiative between the Plan, EAP, 4
  divisions/associations
• The project was lead by joint association/
• division steering committees who created a
  comprehensive wellness survey and assessed the
  results
• Using the survey results the committees
  identified issues and required actions

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Wellness Project to-date

• Survey results have been received and assessed by
  each committee.
• Committees have provided initial advice to the
  division administration on issues and some
  required actions.
• Some divisions have assigned further work to
  existing groups, schools and as well referred
  issues to PD activities.

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Future Wellness Projects

• The Plan is pleased with the wellness pilot and
  is evaluating the process
• The intention at this stage is to approach up to
  9 other associations to see if any wish to do a
  similar project next school year
• The 2005-2006 DBP budget provides for this level
  of wellness projects

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Goals 3Evaluation of progress

• 3. Members have knowledge and confidence in
  security and integrity of a fully funded plan
• The 5-year plan is on track.
• New brochures and a Plan website
• Changes in TRAF, premiums reduced
• Fiduciary insurance coverage for the Plan

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Actuarial Report

• Charly Pazdor will provide an actuarial review of
  the Plan after this presentation

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Web site and a brochures

• In order to improve members understanding of the
  Plan and access to basic Plan information we
  created a DBP web site and brochures
• Copies of the general Plan brochure were sent to
  divisions in the winter for distribution to
  members
• This distribution will occur again in September

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Claims Experience

• Claims experience drives the finances of the Plan
• We are still seeing a significant growth in
  claims
• Our task is to manage these claims actively to
  facilitate early return to work where possible

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Claims growth Self Insured Plan

• Open Claims Increase
• August 31 1999 407
• August 31 2000 442 35 (8.6)
• August 31 2001 473 31 (7.0)
• August 31 2002 531 58 (12.3)
• August 31 2003 557 26 (4.8)
• August 31 2004 601 44 (7.8)
• corrected

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Investment Fund Performance
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Plan Returns 2003
¹ Real Return Bonds managed passively (i.e. buy
hold) ² Benchmark index consists of 30 Cdn
Equity. 30 Global Equity. 20 Fixed Income
Universe Index 10 Real Return Bonds 5 Real
Estate and 5 Cash
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Plan Returns 2004
¹ Real Return Bonds managed passively (i.e. buy
hold) ² Benchmark index consists of 30 Cdn
Equity. 15 Global Equity. 10 Fixed Income
Universe Index 18 Long Bond Index 10 Real
Return Bonds 12 Real Estate and 5 Cash
(effective April 1, 2004) ³ estimated returns
based on preliminary numbers provided by Inv. Mgr.
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Additional information investment reports

• At the Metro binder meeting additional investment
  reports were requested by a delegate and later
  provided.
• All delegates should have received these
  additional reports in their registration packages.

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Investment Committee Report

• We are very pleased with overall Fund performance
  particularly the annual performance of Franklin
  Templeton and J Zechner Associates.
• During the year the committee approved a
  significant change in the asset mix reducing
  exposure to equities from 60 to 45.

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2003-2004Financial Highlights

• 5.2 million growth in the investments
• 3.1 million positive cash flow - operations
• 0.6 million gain in the GWL Insured Plan
• Total increase in assets 8.9 million
• Claims growth of over 7,
• Early Interventions very active
• Significant growth in claimants who are working
  part-time

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2004-2005 1st six monthsFinancial Highlights

• 5.1 million growth in the investments
• 1.0 million positive cash flow - operations
• Total increase in assets 6.1 million
• Claims growth at 5.4,
• Early Interventions very active
• Steady numbers of claimants who are working
  part-time

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Retirement Incentive Option

• Claimants who are eligible to retire and are also
  receiving CPP disability benefits are being
  considered for an early retirement incentive
• To date 5 claimants have accepted the offer
  saving the Plan over 250,000

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Goal 4Evaluation of progress

• Members have access to services appropriate to
  their needs
• The Board has undertaken to meet with members at
  every opportunity to give information and seek
  feedback on service quality and satisfaction.
• Additionally the claimant satisfaction
  researcher asked claimants to assess if the Plan
  met their needs

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Progress Report on the Activity of the Joint
Committee

• Committee first met on December 18th
• Both parties feel good progress is being made 3
  meetings have taken place
• Next meeting planned for September
• If resolutions are required they will be brought
  to the 2006 AGM

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Closing Summary

• Our 5 year recovery plan is on track
• We are satisfied with the operational and
  financial condition of the Plan
• Claimants report high levels of satisfaction with
  the Plans services
• We are concerned with claims growth
• We have introduced new programs to improve
  services and reduce claims

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Actuarys Report
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The 2005-2006 DBP Budget

• As we did last year we are providing Provincial
  Council with our proposed budget for next fiscal
  year
• Once we have moved the approval of this budget we
  would be pleased to answer any questions from
  delegates

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Motion to accept the Boards Annual Report
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Motion to accept the Auditors Report and the
Actuarys Report
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Motion to approve the DBP 2005-2006 Annual Budget
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The Manitoba Teachers SocietyDisability
Benefits Plan

• Presentation to the
• 2005
• Provincial Council
• May 27 2005