Guiding Principles - Portaplan
- Portaplan is a voluntary group life insurance plan administered by the STF and created in 1970, providing Saskatchewan certified teachers and their family members the opportunity to purchase additional term life, accident, and dependant life insurance at group rates.
- Portaplan has a 32-year history of voluntary coverage for teachers, their spouses and their children.
- It is contractually provided under a group policy issued by an insurance company. There have been three insurance companies who have held the Portaplan contract over the years. It is presently Manulife Financial and previously it was North American Life (which was purchased by Manulife) and was initially Imperial Life.
- Portaplan funds generated by the Plan are used specifically to cover all Plan expenses (premiums, claims, reserves and administration). The Plan is to benefit participants and is completely separate and apart from any other STF program.
- The Plan is to be self-supporting. Portaplan administration costs are covered through the rate differential charges (difference between what is billed to participants and what is remitted to the insurance company) and investment earnings.
- Portaplan is a fraternal plan based on the best interests of its participants.
- A straight comparison between Portaplan and other plans cannot readily be done since Portaplan has some features not usually found in other plans. They are:
- Coverage may be continued until death (regardless of the age) while in other plans coverage ceases at termination/retirement/age 65 or 75.
- Premiums are waived beginning November 1 following the attainment of age 90.
- Premium rates are based solely on age bands (there is no breakdown between male/female, smoker/non-smoker).
- Portaplan is completely portable as long as any required premiums continue to be paid.
- Portaplan premium charges are waived for participants meeting the criteria for disability.
- Portaplan rates are reviewed annually with a long-term view to provide rate stability and avoid frequent fluctuations.
- An annual review of rates is standard practice in the insurance industry. Portaplan rates reflect the actual experience (claims vs. premiums) of the Plan, projected costs to the Plan and the funding level policies of the Plan. The annual review is to determine the premium rates required to maintain the Plan over an extended period of time.
- Portaplan funding polices are established by the Board of Trustees and are set and reviewed periodically.
- There are five specific reserves which are presently in place for the Plan:
- Claims Fluctuation Reserve
- Incurred But Not Reported Reserve
- Waiver of Premium Reserve
- Age 90 and Over Claims Reserve
- Rate Stabilization Fund
- Portaplan premium charges are waived for participants of the Plan beginning the November 1 following the attainment of age 90.
- Portaplan establishes a communication plan annually to:
- Keep Plan participants informed about the Plan;
- Keep STF members informed about the Plan; and
- Promote participation in the Plan.
