OSSTF District 11- Thames Valley
Ontario Secondary School Teachers' Federation

680 Industrial Road, London, Ontario, N5V 1V1
Phone: (519) 659-6588; Fax: (519) 659-2421; Email: osstf11@execulink.com

OTIP has completed all analysis and negotiations with our insurance carrier for the long term disability (LTD) plan renewal. We are pleased to advise that our group will receive an 8.5% reduction in our premium rates. As a result, the rate for our plan will decrease from 1.14% to 1.05% of salary effective November 1, 2006 (including PST). This rate action results in members paying less for the same level of benefit protection.

As a non-profit organization, the federation trustees of OTIP take their fiduciary responsibility very seriously. The process of reviewing the data and negotiating a fiscally responsible position for our LTD pool involves many individuals with the goal of monitoring and managing the plan for the long term benefit of our members.

The negotiations took into account many factors, including: patterns in the numbers of new claims; the incidence and type of disability; reserve levels for both current claims (disabled life reserves), and claims that are anticipated (incurred but not reported claims); plus the administration charges levied by the insurance carrier.

OTIP has continued to study claiming patterns over an extensive period and have taken into consideration the volatility and seasonality of the claims it manages on our behalf. Some of the trends OTIP continues to monitor closely include the following:
• Mental and nervous claims continue to be a significant component of new claims, and far above the average of claims for the adult working population;
• The younger ages of many of the new mental/nervous claimants.
• Cancer related claims are continuing to increase. OTIP's focus is on methods to provide advice and assistance to members.

We are pleased that the financial results allow for a reduction in premium rates. If you have any questions regarding the LTD plan or renewal please contact Eric Wilson, our OTIP representative at 1-866-486-6847.