This directive describes how position abolishment affects employees' benefit coverage. It covers the status of benefits when employees are released and rehired and provides pension information.
Position abolishment affects benefit coverage for bargaining unit, opted out, excluded, and management employees in much the same way. Unless otherwise specified, this directive applies to all groups of employees.
Please note: This is suspended to March 30, 2020 for permanent Bargaining Unit employees due to Letter of Understanding #17 in the Collective Agreement (Employment Security). Bargaining Unit employees must refer to the Collective Agreement for the most current information.
Benefit status when released
The employer and employee will continue to pay their respective portions of the applicable premium costs.
Group life insurance
Coverage ends on the last day of the bi-weekly pay period in which the 180-calendar day vesting period expires. Employees may convert their coverage to an individual insurance policy with the insurance company within 31 days of the date their group life insurance coverage ends.
Coverage ends on the last day of the bi-weekly pay period in which the 180-calendar day vesting period expires.
Long term disability income
Coverage ends on the last day of employment or age 65, whichever is the earliest.
All outstanding vacation leave for previous years and the current year will be paid as a lump sum when the employee is terminated.
Coverage ends on the last day of employment.
Extended medical benefits (Blue Cross)
Coverage ends on the last day of the bi-weekly pay period in which the 180-calendar day vesting period expires. Employees can arrange individual contracts with Alberta Blue Cross or other providers who offer supplementary coverage. Note that premiums for individuals are different from premiums for employees in the group plan.
Health Spending Account (HSA)
Coverage ends when the 180-calendar day vesting period expires (day 181).
Benefit status when rehired
If an employee is released and then rehired to a permanent or temporary salaried position during the 180-day vesting period, the employee's benefits will be treated as if the employee was on a leave without pay. If an employee is rehired after the 180-day vesting period has expired, the employee's benefits will be treated as if the employee was a new employee.
Each department's human resources office provides pension information to its employees. Accurate information is essential in selecting a pension. Human resources offices can refer inquiries to:
Employees who need information on pension options should refer to their pension plan website at:
About this directive
|Authority:||Collective Agreement, Article 15
Public Service Employment Regulation (PDF, 880 KB)
|Application:||Organizations under the Public Service Act|
|Effective Date:||October 1, 1997 (updated February 1, 2013)|
|Contact:||Alberta Public Service Commission:
Labour and Employment Practices; Talent Acquisition and Mobility