Wage Indemnity Program

THINGS YOU SHOULD KNOW

Initial effective Date of Plan: March 1, 2001.

This booklet reflects the modifications as of January 2, 2021.

Covered Classes:
All flight attendants employed under the jurisdiction of the Canadian Union of Public Employees, Air Canada Component by an airline participating in the Wage Indemnity Plan.

IMPORTANT:
The coverages described in this wage indemnity plan are insured under Group Policy No. 29880 issued to the Policyholder by SSQ, Life Insurance Company Inc. (SSQ). They are available to you if you are included in the covered classes shown above. Only those coverages for which you become covered will apply to you.

This booklet is a description of the group benefits at the date shown on the front cover and is provided for information purposes only. It does not constitute the group insurance policy nor does it affect the terms and conditions of the group insurance policy. In the event of a discrepancy between this booklet and the group insurance policy, the policy shall prevail.

Conformity with Law:
If any provision of this wage indemnity plan conflicts with any law which applies to individuals shown in the covered classes, the plan will be amended to conform to that law.

Cost:
You will be advised of the amount of your contribution when you enroll for the coverage. Premiums erroneously deducted by your employer do not constitute effective coverage as set forth in the contract.

The coverages are described in the Summary of Coverages and the coverage description pages. Be sure to read these pages carefully. They show when benefits are or are not payable, and outline the conditions, limitations and exclusions that apply to the coverages.

Legal Actions:
Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out to this end, if any, in the applicable provincial Insurance Act.

Access to Documents:
In addition to the rights of insured persons outlined in the Notice of New File and subject to payment of the fees outlined therein, you also have the right to obtain a copy of the policy, application and any written statements or other records that you have provided to SSQ. However, in compliance with the Insurance Act that applies to you, the first request may be answered free of charge, including for transcribing, reproducing or sending this information. Any subsequent requests may be subject to fees as described in the Notice of New File.

Plan Administrator:
Manion Wilkins & Associates Ltd. (MANION)
21 Four Seasons Place,
Suite 500 Etobicoke, ON
M9B 0A5

For Claims Inquiries: 416-234-3513 Toll Free: 1-800-663-7849 For Prepayment of 416-234-3511 Toll Free: 1-866-532-8999 Premiums: FAX: 416-234-2071 For information on the role and responsibilities of the Plan Administrator, please refer to the Roles and Responsibilities of the Board of Trustees and Plan Governance section of this booklet.

SUMMARY OF COVERAGES

Membership:
Flight attendants employed by Air Canada.

Weekly Indemnity Coverage Weekly benefit:
60% of earnings payable weekly.

Elimination period:
• 7 days from first flight missed for regular blockholders • 7 days from first reserve day missed for reserve blockholders

Benefit period:
First 15 weeks of Weekly indemnity (paid by MANION on behalf of SSQ). Following 15 weeks of Employment insurance with a Supplementary Unemployment Benefit (SUB) top-up by the Trust Fund. You must apply for disability benefits under the Employment Insurance Act of Canada (EI) for the 15-week period during which weekly indemnity benefits are not payable under the contract. Disability benefits under EI are taxable benefits and will be assessed based on the benefit plan design under the EI Act. Following 46 weeks of Weekly Indemnity (paid by MANION on behalf of SSQ).

Maximum benefit period:
For any one period of total disability, benefits will be payable for 77 weeks (including elimination period) but not beyond the end of the month in which you reach age 71 or the date you retire, whichever is earliest.

Taxability:
Since you pay the entire premium for this coverage, the weekly indemnity benefit payments are nontaxable.

Benefits from certain other sources:
Should you be entitled to periodic benefits from certain other sources during a disability, the amount of the weekly benefit payable may be reduced as explained later in the Weekly Indemnity Coverage description pages.

Termination of coverage:
The day you reach age 71 or the date you retire, whichever is earliest.

Long-Term Disability Coverage Monthly benefit:
60% of your pre-disability earnings payable monthly.

Elimination period:
77 weeks or expiry of Weekly Indemnity, whichever is later.

Reduction:
The amount of the monthly benefit payable may be reduced so that your income from all sources will not exceed 85% of your gross monthly pre-disability earnings. This is explained later in the Long-Term Disability Coverage description pages.

Taxability:
Since you do not pay the entire premium for this coverage, the long-term disability benefit payments are taxable.

Maximum benefit period:
Benefit payments terminate on the earlier of: • the end of the month in which you reach age 65; • the end of the month prior to the month in which you retire (early or normal retirement); • the end of the month in which you qualify for a Company pension without actuarial reduction and you have a minimum of 25 years of pensionable service and you are a minimum of 60 years of age; or • the end of the month in which you reach age 60 if you have failed to provide a copy of your pension statement to MANION or SSQ as required.

Termination of coverage:
Coverage terminates 18 months prior to the earlier of: • the date you reach age 65; • the date you retire (early or normal retirement); or • the date you qualify for a Company pension without actuarial reduction, and you have a minimum of 25 years of pensionable service and you are a minimum of 60 years of age.

For further information regarding your Company pension without actuarial reduction, please refer to your pension benefit statement

DEFINITIONS

The following definitions apply throughout this wage indemnity plan unless a term is defined differently within a specific coverage for the purpose of that coverage.

ACTIVE WORK, ACTIVELY AT WORK means the performance of the regular duties of your own occupation in accordance with the regular work schedule. Employees are not considered actively at work until they have performed their regular duties for one flight, or shift if on special assignment or union officer duties, or one day of reserve duty. It does not include periods during which you are undergoing training mandated by the Ministry of Transport or the employer, or while on vacation, IMMS, or any other non-pre-paid form of leave.

BENEFITS means any amounts which become payable under a coverage.

CONTRACT means Group Insurance Policy No. 29880.

CONTRACTHOLDER means Board of Trustees of the Canadian Union of Public Employees, Air Canada Component Wage Indemnity Plan Trust Fund in its capacity as the Policyholder of Group Insurance Policy No. 29880.

EARNINGS means the average of the participant’s last three completed block months at the time of book-off. For example, the book off date from first flight missed (FFM) is March 30, 2018. As the FFM was still in the March Block Month, the 3 months used will be December (Dec 2-31) January (Jan 1-31) February (Feb 1-Mar 1). Excluded from earnings are bonuses, fees, lodging and meal allowances, amounts paid by the employer as fringe benefits, isolation allowances and any lump sum payments.

EMPLOYER means Air Canada.

FULL-TIME BASIS, FULL-TIME EMPLOYMENT includes regular part-time basis and regular part-time employment, as defined in the collective agreement between an employer and the Canadian Union Page 6 of Public Employees, Air Canada Component. Temporary employees are not eligible for coverage.

ILLNESS means any disorder of the body or mind, including complications resulting from pregnancy.

PHYSICIAN means a duly licensed doctor of medicine (M.D.) as directed or authorized by SSQ.

REGULAR BLOCKHOLDER means anyone who is employed by an employer under the terms of a collective agreement with the Canadian Union of Public Employees, Air Canada Component.

RESERVE BLOCKHOLDER means anyone who is employed by an employer under the terms of a collective agreement with the Canadian Union of Public Employees, Air Canada Component.

SSQ means SSQ, Life Insurance Company Inc.

YOU means a member who is employed as a flight attendant by Air Canada under the jurisdiction of the Canadian Union of Public Employees, Air Canada Component.

BENEFIT PLAN PROVISIONS

Who is Eligible to Become Covered
You are eligible for coverage if you:
(1) are within the covered classes shown on the Things You Should Know page;
(2) are actively at work; and
(3) are working on a full-time basis.

Temporary employees are not eligible for coverage.

Effective Date of Coverage
Provided you meet the eligibility requirements specified in Who is Eligible to Become Covered above, your coverage becomes effective on:
• The first of the month coinciding with or next following the date you become eligible if you are new employee; • The date of transfer if you are an employee transferring in from another division of Air Canada to the jurisdiction of the Canadian Union of Public Employees, Air Canada Component.
If due to illness or injury, you are not actively at work on the date your coverage is to be effective, it will become effective when you return to full-time active work.
If you are absent from work due to illness, injury, leave of absence, layoff, suspension, or any other reason and are not in receipt of benefits under this wage indemnity plan or under any workers’ compensation law, your wage indemnity plan benefits will not be reinstated until you return to full-time active work (as defined on the Definitions page) as a flight attendant.

Change in Coverage
If your coverage would change due to a change in earnings or classification or as a result of a plan change, the coverage will not be adjusted until the first day on or after the date of the change on which you are actively at work and the required contribution is being made.

Termination of Coverage
Your coverage will terminate on the earliest of the following dates:
(1) the date you cease to be a member of any eligible class because of termination of employment (described below) with the employer or for any other reason;
(2) the date you are no longer included in the covered classes;
(3) the date the policyholder or the employer ceases to make contributions for you;
(4) the date you enter full-time active service in the armed forces of any country;
(5) the date you attain the termination age as shown in the Summary of Coverages;
(6) the date the contract terminates.

Termination of Employment
For the purposes of the contract, your employment will be considered to terminate when you are no longer actively at work for the employer. However, if you are absent from work for any of the reasons described in the Continuation of Coverage During Absence From Work section below, the employer may, without discrimination among persons in like circumstance, consider you as not having terminated employment for the purposes of the contract and as continuing to be a member of any eligible class, as outlined in the Continuation of Coverage below.

See Wage Indemnity Program – WIP Bulletins under Committees, located in the Members Recourses section – no need to log in for access to any of this information.