Group life insurance for public servants is provided through the Public Servants Group Insurance Fund (PSGIF).

The amount of insurance is based on a Class (1-5) selected by employees upon hire and multiplied by their annual salary. The maximum insurance coverage is $1,000,000. For instance, if you choose class 3 and your annual salary is $50,000; your insurance coverage will be $150,000.

Both the employers and employees pay premiums to cover the costs of the plan. The cost of the first four classes of insurance is shared between the employee and the employer, while the fifth class is entirely paid by the employee.

When you become eligible for life insurance and have not selected a class, you are automatically enrolled in Class 5 and premiums based on that Class are automatically deducted.

Employees in the core public service and many public sector organizations have group life insurance through the Public Servants Group Insurance Fund (PSGIF). Participation in the plan is compulsory for employees who become eligible to contribute to the pension plan.

More information on eligibility for pension is available at: https://cssb.mb.ca/employees/new-employees/

The premiums are decreasing, so you maintain the same coverage at a lower cost.

Employers are paying a larger share of the costs. Cost sharing on Class 1-4 insurance changes from 27.5% employer funded to 30% employer funded. This means employees will pay 70% of the cost, a decrease from 72.5%. Class 5 remains 100% employee paid.

So long as you’re actively employed, you can keep 100% of your insurance coverage up to the age of 74. Previously this would have reduced at ages 65 and 70. At age 75 coverage becomes the paid-up insurance amount.

Finally, the amount of paid-up insurance is increasing from $6,000 to $8,000.

Example

For an employee earning $50,000 with class 4 insurance, they currently pay premiums of $15.36 bi-weekly.

As of May 1, 2025 they would pay premiums of $12.88 bi-weekly.

Cost of group life insurance as of May 1, 2025

The changes will be ongoing and will happen every year.

Currently, when an employee turns age 65, insurance reduces to 75% of their selected Class multiplied by their annual salary. There is a further reduction to 62.5% at age 70, and to the paid-up insurance amount at age 75, when no further premiums are required.

As of May 1, 2025, there are no reduction based on age for employees in the 65-74 age range. Active employees are eligible for 100% of their insurance coverage until the age of 75.

Any employee on pre-retirement reductions will be restored to 100% of their insurance coverage.

Paid-up insurance means insurance has been paid in full and no longer requires premiums. It continues to provide coverage of the paid-up amount until the insured member dies at which time it becomes payable to the beneficiary or estate.

Paid-up insurance coverage applies to employees as of their 75th birthday.

No, the decrease in premiums does not apply to the dependent rates. 

Yes, you can. Employees who may want to change the class of their life insurance can make an increase or decrease anytime while actively working. To increase the class of your life insurance, an application and medical form must be completed.

For any changes to your life insurance class, please reach out to your Pay and Benefit Consultant.

You are encouraged to review and update your beneficiary information when life event changes occur, like marriage, divorce, or birth of a child. 

Keeping your beneficiary information current is important for the timely and accurate administration of the policy and ensures your benefits are being allocated as intended. 

For life event changes, please reach out to your Pay and Benefit Consultant.

You might also want to reach out to CSSB about how life events may impact your pension.

You can access a Beneficiary Designation Form directly at the link below or contact your Pay and Benefits Consultant for more information.  Group Life Insurance Beneficiary Designation Form