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To:          PAOC District Leadership Partners, Plan Administrators, Treasurers, and Bookkeepers

From:   Jeff Kechnie, President - Kechnie Benefits
Date:    March 31, 2020
Re:         PAOC DISTRICT GROUP INSURANCE PLAN - EI  SUB Program / Extension of Benefits While on Leave


Hello All,

Information continues to unfold on COVID-19’s effect on businesses.  One thing that is clear, employers are being asked to find ways to support their employees and businesses.  The governments are announcing unemployment and wage subsidy programs, and insurance companies are easing their contractual provisions. For instance, the Federal Government announced recently, support to Employers for up to 75% of Wages (Payroll) with certain conditions; many Churches may find themselves eligible for this benefit.
 
The following information pertains directly to your PAOC Group Benefit Program:
 
Supplemental Unemployment Benefit (SUB) Program
 
As we have indicated in earlier communications, the PAOC Supplement EI SUB Program is currently registered for “Sick Leave” Benefits (only), for up to 85% of income.  At time of set up, each church participating in the group benefit program had their CRA Business Number recorded under their registration.  For a participating church that finds themselves in a position to do temporary lay-offs, and wishes to Top Up EI “Unemployment” Benefits for their employees, there will be a need for a secondary registration due to the temporary lay-off.  We have learned from Service Canada, that as your church has been registered under the PAOC program, your request for a secondary registration for Unemployment EI SUB Top Up (up to 85% - same as Sick Benefit) will need to be done by Kechnie Benefits.  To do so just email our office benefits@kechnie.com with your request, and we will follow up with you to confirm details.
 
Update on Extension of Benefits for Employees while on Lay-Off
 
During the special circumstances around COVID-19, Industrial Alliance our insurance provider,  just announced that they are enhancing provisions to extend coverage under the benefit program for employees on temporary lay-off from 3 month to a maximum of 6 months, with or without the inclusion of Long Term Disability Benefits.   No individual selection is allowed at the employee level but under the Core Plus program, the provision can be set at each Class level.
 
New – Eligibility for Employees with Hours Reducing Below 20/week
 
Acknowledging how Employers may have to adjust hours, employees with hours reduced below 20/week can maintain full benefit coverage,  if they are also extending benefit coverage for those who are on temporary layoffs. You do not need to update salaries, during this period.  Benefits based on Salary, will continue to be calculated on earnings recorded prior to hours being reduced.  This also can be maintained for up to 6 months.
 
Reinstatement of Benefits
 
In the case where benefits are not extended during layoffs, employees previously enrolled in the benefit program can have their coverage automatically reinstated if they return to work within the first 12 months. 
 
If you find yourself in need for temporary lay-offs or hour reduction, please contact us so that we can update member’s certificate accordingly.
 
We hope these additional provisions are supportive and helpful through this time.


 
Stay Healthy!
 
The Kechnie Benefits Team



 
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