ARCHIVED CD 2008-028

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• | Information Notice to Employees

December 31, 2008 (Revised March 6, 2009)

SUBJECT: Elimination of Alberta Health Care Premiums

1. PURPOSE

1.1. This directive is to advise client departments and regional pay offices with information relative to the elimination of the Alberta Health Care premiums, effective January 1, 2009.

The information will assist compensation advisors in providing information to individuals concerning the elimination of the Alberta Health Care premiums that will impact their pay cheque.

1.2. An information notice to employees concerning the above-mentioned subject has been included.

2. CANCELLATION

2.1. This directive cancels and supersedes Compensation Directives 1994-032 dated August 5, 1994, and 1989-141(47) dated October 30, 1989.

2.2. The following Personnel-Pay Input Manual (PPIM) sections will be modified:

• 3-2,
• 4-4-16-1,
• 4-4-16-2,
• 4-4-77,
• 9-5-4,
• 14-5-1,
• 14-5-4,
• 14-5-6.

3. BACKGROUND

3.1. On April 22, 2008, the Honourable Iris Evans, Minister of Finance for the Government of Alberta, announced, in the province's budget speech, the elimination of Alberta Health Care premiums, effective January 1, 2009.

3.2. For more information, including questions and answers, please view the following link: Alberta Health Care Insurance Plan
Please note that the Web site is only available in English.

3.3. The announcement to eliminate Alberta Health Care premiums means that compensation advisors will no longer start a deduction under code 690 (Alberta Health Care Plan).

3.4. The role of the "Alberta Health and Wellness" group that administers the Alberta Health Care Insurance Plan (AHCIP) employer group plans has changed with the elimination of the premiums January 1, 2009. Therefore, starting on April 1, 2009, the "Alberta Health and Wellness" will only continue to issue premium statements until employer group accounts are paid in full.

4. POLICY

4.1. As the Alberta Health Care premiums will be eliminated, compensation advisors will no longer enter transactions with the deduction code 690. Code 690 will be stopped using the bulk stop process in the Regional Pay System (RPS), but not deleted/eliminated.

The bulk stop process will be done on December 22, 2008. A broadcast message will be issued to confirm the date.

4.2. Although the deduction code 690 will be stopped, it will not be removed from the list of valid deduction codes, in the event this deduction is reinstated in the future.

5. PROCEDURES/INSTRUCTIONS

5.1. As of January 1, 2009, compensation advisors will no longer commence a deduction under code 690.

5.2. Arrears

When applicable, deduction arrears for Alberta Health Care premiums under code 864 (Alberta Health Care - Arrears) and 683 (Alberta Health Care - No employer's share) for any period prior to 2009 will continue to be taken from the employees' pay until the arrears are paid in full.

5.3. Reporting and Remittances

5.3.1. The reporting and remittance processes will change.

5.3.2. Departments should continue to submit the appropriate documents for all changes affecting the employee file prior to January 1, 2009, to the "Alberta Health and Wellness" group at the following address:

Alberta Health Care
10025 Jasper Avenue
PO Box 1360
Edmonton, AB T5J2N3

5.3.3. It is no longer necessary to submit employee commencement and termination forms with an effective date of January 1, 2009, or later.

5.3.4. Departments are asked to advise their employees that they do not have to reregister for AHCIP coverage, but that they will need to contact AHCIP for changes in registration information such as a name change or the birth of a child.

6. INQUIRIES

6.1. Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.

Original Signed by
B. Fortin

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): CJA 9006-4-7, 9248-4