Make sure you file for B.C. Pharmacare program

THE B.C. GOVERNMENT changed the rules on
Pharmacare coverage in the province and you should
know that you still have time to register. Although the
government's faulty communications strategy had

ABOUT YOUR COVERAGE
BY GERRY SMITH

thousands of people trying to register in the weeks
and days before the May 1, 2003 “deadline,” — and
phones, fax lines and the government's website were
flooded frozen — you can still register before January 1,
2004 and get money back if eligible.

To register you need four things: your CareCard
number, social insurance number, birth date and net
income from your 2001 tax return (Line 236). Register
online at www.gov.bc.ca/healthservices by clicking on
the “Register for Fair PharmaCare” button or down-
load a registration form. You can also call toll free at 1-
800-387-4977. And be aware that the government is
looking for your household income — that means your
net family income if you are married or have depen-

dents that earn income. If you don’t register, you'll
automatically be classified into the highest family
income bracket until you let them know otherwise. It
also means that a maximum deductible of $10,000
will be applied if you don’t step up to the plate and
sent in the right information

Time goes fast and January 1, 2004 will be here
before you know it! So register today.

The May 1 income testing rules apply to all citizens
and if you don’t already get premium assistance it
means you are considered not registered.

Many IWA members, especially those employed in
the primary forest industry, are covered by an
Extended Health Care Plan such as provide by Pacific
Blue Cross. If you don’t register that plan might be
improperly charged with pharmacare costs — not a
good thing for the plan or the costs of premiums that
have to be paid on your behalf.

By simply registering, your family and you will
fall into the appropriate category as set out by the
government’s new Pharmacare rules.

Previously, the deductible per family was pegged
at $1000 per year. As mentioned above, that will be
jacked up to a maximum of $10,000 per family for

those families with a combined net income of over
$30,000.

Pacific Blue Cross and employers have signed a
contract which requires that all covered employees
register with the program. That will cut down on
any confusion or chaos in the future.

The new changes will mean that costs of covering
deductibles are downloaded onto Pacific Blue Cross —
to the tune of adding an estimated 5 - 8 per cent to the
costs of premiums for employers.

Those are some of the reasons why you'll read in
this issue of The Allied Worker, that the IWA and the
industry are currently grappling with the runaway
costs of benefit programs. Added to the Liberals’
downloading of Pharmacare costs, new and costly
drug therapies — protected by long-term patents — are
jacking up the costs of drugs overall.

If you have not registered in time, don’t feel alone.
Before the May 1 deadline, less than half of the
province’s estimated households had registered.
Although the registration process was a suddenly
announced and confusing boondogle, don’t forget
that the government calls the shot on this stuff

Gerry Smith is the IWA’s Benefits Appeals Representative

IWA-Forest industry
pension plan marks
thirty years’ progress

IT’S A PENSION PLAN THAT is one
of the best in Canada in the private sec-
tor and this June 15, it will celebrate 30
years of changes, challenges and growth.
“Today our pension plan is faced with
challenges — just like it has been in the
past,” says IWA Canada national first
vice president Harvey Arcand, who also
sits as a union trustee on the joint IWA-
Industry board of trustees.

“Pension plans across Canada are
faced with collapse, following the crash
of stock markets in 2001 and the after-
math of 9/t1,” says Arcand. “Many pen-
plans are going belly-up. Our’s is much
better off than most because of invest-
ment strategies used and due to its joint-
ly-managed structure.”

The plan is faced with a short-term
solvency short-fall due to the market col-

= In 1973, Local 1-217 member Malcolm Nicholson (at mike) became the
first-ever IWA member to draw from the plan. Also pictures were IWA Region
One president Jack Moore (right) and plan administrator John Billings.

PLAN’S HIGHLIGHTS

1973 - 300 Companies and 44,000
members

41976 - Introduction of pre-retirement
benefit

1977 - Peak of 132 million hours
reported, All continuous years of
past service in the industry count
for pension credits

1978 - Merger of Coast, North and
South pension plans into one
fully-portable plan

1979 - Market value of plan exceeds
$100 million

Twa arcHives | 1980 - Introduction of layoff credits

1982 - Entitlement after 8 years of
service, regardless of age

1984 - Full year credit drops to 1500

lapse and record low numbers of hours
worked by plan members due to the dif
ficulty the forest industry is in. The
union is attempting to address these at
the bargaining table this year (see stories
age one and opposite page) by proposing
that employers and plan members both
contribute to the shortfall.

“For 30 years we've enjoyed a plan
where employers were the sole and then
prime contributors,” says Brother
Arcand. “This time around, with the
industry in economic difficulties and
American tariffs taking their toll, our
union has proposed that, rather than see
the government possibly force a reduc-
tion in benefits to its members, both
sides should step up to the plate to deal
with the issues at hand.”

From 1973 to 1993 (the plan was
negotiated in ‘72) the employer was the
sole contributor, then employees start-
ing kicking in. By December 31, 2002
there were some 700 companies partic-
ipating with about 32,500 active and
23,000 retired members. Contributions
were at $111 million per year, but the
| plan paid out some $147 million in ben-

efits. That’s quite a change from the
plan’s initial year when 300 companies
were paying into the plan, but with
some 44,000 active members.

From ‘73 to 2003 there have been lots
of major changes
and shifts in the
plans direction (see
highlights right) as
members have
demanded more
and more from
their plan through
‘wages and contract
conferences,
which has, in

Harvey Arcand turn, put more
pressure on at the bargaining table.

Early in the plan’s history, the union
decided to cover past generations of
IWA members. Tens of thousands of
lives were improved as a result.

It also started out in 1973 as a plan
which only covered the Coast, while sep-
arate plans existed in the B.C. Interior
regions. That ended in 1978 when all
plans merged into one, becoming fully
portable wherever IWA members went.

“Our plan really evolved to become
the envy of many organizations,” says
Arcand. “It has also survived, held its
own through turbulent economic
times, and has grown considerably dur-
ing periods of economic growth.”

From 1993 to 2000 the plan’s mar-
ket value nearly doubled from over $1
billion to $2 billion as it road a crest of
economic growth and progressive
financial planning by it trustees and
investment managers. But the collapse
of North American and world stock
markets, ensuing financial scandals
(Enron, WorldCom, etc.) and the detri-
mental effects of the terrorist attacks
on the World Trade Centre on
September 11, 2001, left their mark on
pension plans and investor confidence-
world wide.

“We have held up strongly, in com-
parative terms. But the damage was
teal,” says Arcand. “There was nothing
we could do. We believe that when our
members know the facts, they will sup-
port fixing up the pension plan, even if
it means more contributions from
themselves in the years ahead.”

hours

1986 - Early retirement becomes
available at age 55

1993 - Employee contributions begin to
plan. Market value exceeds $1
billion and benefits exceed $100
million/year. 40,000 active
members, 20,000 inactive and
over 15,000 receiving pensions

1999 - Entitlement to a pension after 2
years of continuous employment:

2000 - Market valuereaches $2 billion

2002 - 700 companies participating.
Contributions $111 million/yr. &
benefits are up to $147
million/yr. 32,500active, 23,000
inactive, 18,000 on pension.
Lowest ever number of reported
hours at 35.8 million,

— courtesy pension office

JUNE 2003 THE ALLIED WORKER T a9)

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