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Frequently Asked Questions

If you have general questions regarding Group Insurance Plan, Pension Plans, or Employer or Broker relationships, please consult our Frequently Asked Questions on each of these topics:

If you have specific questions regarding this Plan, please consult the Plan Booklets. If you still have questions after reading your Plan booklets and Frequently Asked Questions, please contact the Plan Administrator.


The following are commonly used terms in relation to Group Insurance Plans and Pension Plans. If you have additional questions, please contact the Plan Administrator.

D.A. Townley. The Administrator co-ordinates enrolment into the Plans, claims payment, pension processing and answers all Member questions regarding the Group Insurance or Pension Plans.

Pension income purchased from a life insurance company.

The person(s)/Estate that you designate to receive Life Insurance, Accident Insurance and/or pension benefits upon your death.

The percentage of the claim paid by the member. For example, if your Benefits plan pays for 80% of eligible Extended Health Care expenses, the co-insurance amount (the amount paid by you) is 20%.

Coordination of Benefits
The ability to make a claim for Extended Health Care and/or Dental eligible expenses under your Benefits Plan and your spouse’s benefits plan. This allows you to receive up to 100% reimbursement for an eligible Extended Health Care or Dental expense.

The amount of out-of-pocket expense that a Member must incur prior to being eligible for reimbursement on subsequent claims.

Defined Benefit Pension Plan
A type of Pension Plan where the formula that will be used to calculate your Pension benefits is pre-determined. Usually it is tied to your annual earnings while working. For example, the Pension benefit formula used to determine your annual Pension benefit at retirement might be: 50% of your earnings in the year immediately prior to retirement. If you earned $60,000 in your final year of employment, your Pension benefit would be $30,000/year.

Defined Contribution Pension Plan
A type of Pension Plan where the amount that the company contributes into your Pension Fund each year is determined in advance. The company might contribute a fixed amount each year (e.g. $1000) or they might contribute a percentage of your earnings in the year (e.g. 3%). The amount of Pension that you receive at retirement will be determined by how much the company contributes to the fund each year and how much interest is gained by the fund prior to your retirement.

Dispensing Fee
The pharmacist’s charge for filling a prescription (also see Professional Fee).

Locked-In Vehicle
Locked-in RRSP or Retirement Account to which you transfer funds from a Registered Pension Plan after you terminate employment. Locked-in means that funds transferred must be used to provide retirement income.

Lowest Cost Alternative Drug
The lowest cost equivalent product that can be legally used to fill the prescription as listed in the Provincial Drug Formulary listing.

Money Purchase Plan

Another name for a Defined Contribution Pension Plan.

Old Age Security
Government provided pension payable to all Canadians from age 65 based on your years of residence in Canada, and subject to claw-back if your retirement income after age 65 exceeds a certain level.

Services provided by a licensed practitioner including: naturopath, physiotherapist, podiatrist, chiropractor, clinical psychologist or osteopath.

Pay-Direct Drug Card
A card issued to Plan Members that allows the Pharmacy to bill the insurer directly for the covered amount of prescription drug costs. The Member is only required to pay their share at the pharmacy and therefore does not have to submit any claim forms. Not all Plans distribute pay-direct drug cards to their Members.

Pension Benefits
The income that you will receive at retirement.

Mechanism that allows unemployed members to pay monthly premiums out of their pocket and continue to participate in the Group Benefits Plan.

Weekly Indemnity
A benefit that pays a percentage of your pre-disability earnings for a defined length of time if you are unable to work due to sickness or accident.