RTAM: A Sustainable Future
July 29, 2024
RTAM: A Sustainable Future?
RTAM offers programing and products for our members’ health and mental well-being. Currently, we have a little over 10,000 members.
Statistics Canada estimated that 21.8 % of the current workforce is between 55 and 64, and therefore on the verge of retirement. As they retire, they will draw more on extended health and dental benefits. As the demand increases, costs will outstrip premiums being paid and the rate of health care insurance will increase.
RTAM offers health, dental, and travel group insurance through Johnson Insurance. The premiums for these services depend on several factors:
- Member count: An increase in membership will decrease the overall cost of premiums as more members are contributing.
- Demographics of members: Although our members’ ages range from 55 to 100+, the number of persons aged 85+ is significantly increasing. As we age, our heath needs increase and we use more of our extended health benefits. As we use more benefits, our group insurance premiums increase.
- Prescription drug and health services costs: Annually, health services and prescription drug prices increase. In addition, as Health Canada approves more drugs in the marketplace, clients’ claims increase and costs of extended health claims for medications and services increase. In 2022, overall drug plan spent per member went up by about 4.3% and in 2023, about 5.2%. However, there was a 2.6% reduction in the number of people claims.
In 2022-2023, the Retired Teachers' Association of Ontario (RTAO) reported a membership of just over 80,000 compared to about 10,500 for RTAM. Because of the number of members, RTAO can offer cheaper health, dental, and travel insurance rates.
To continue to increase their size, they are actively welcoming retired teachers from other jurisdictions, such as RTAM. RTAM will lose members if there are cheaper insurance plans elsewhere. If our membership decreases, our premiums will go up. As our premiums go up, more members will leave for cheaper premiums.
So, it becomes a spiralling downwards scenario. How long can RTAM survive as our membership keeps decreasing?
To break this cycle of downward spiral, the board of directors would like to work actively to increase our membership and assure RTAM's long-term viability.
To mitigate this, another classification of RTAM membership is needed. The board proposes that we introduce Community Membership for non-Kindergarten-Grade 12 teachers. Here is what our membership may look like:
- Full Members: Retired teachers. These members can vote and sit as RTAM board members. This membership solely controls the direction and the future of RTAM.
- Associate Members: These are spouses of deceased RTAM members who wish to continue with RTAM, as well as teachers from other jurisdictions outside of Manitoba. They cannot vote nor can they sit on any RTAM board position. Thus, they do not have a say in the future of RTAM.
- Community Members: These are interested parties wishing to join RTAM. They do not have to be educators but need to have worked in an educational setting. They are non-voting members and cannot sit on the RTAM board. They can not influence the direction and the future of RTAM.
Retired teacher associations in other provinces accept non-teacher members as long as they were employed in an educational institution. By allowing Community Members, the cost of health care insurance for our members may decrease and RTAM can continue to be a sustainable, vibrant organization.
