What’s the difference between an employee benefits program purchased through a benefits trust and a typical package purchased through a broker? For starters, the trust adds no tax and no sales commission to the bill paid by employers. The trust is also a non-profit entity, legally bound to reinvest profits in better product offerings. However, the British Columbia Construction Association Employee Benefit Trust (BCCA EBT) offers benefits—both tangible and intangible—that take those benefits a quantum leap further for construction company clients, says CEO Arthur Chung.
The trust grew organically from the construction industry itself 47 years ago, when several employer groups pooled their resources to provide benefit coverage for their employees. Today, the formalized health benefits trust is a fully staffed service provider overseen by a board of trustees drawn directly from the construction industry.
The trust doesn’t compete on price. It offers plans that as accurately as possible predict the costs of paying benefits. However, that doesn’t mean that the plans are not competitive.
"With all of our 6,000 clients pulled together, we’re now a group of significant size and we represent them to the insurance carriers to get the best rating and bring down costs," says Chung. "We even underwrite our own products—the only thing that differentiates us from being an insurer is that we don’t pay out the claims."
The trust works closely with construction industry representatives to create benefits packages that most accurately represent the needs of the industry.
"The construction industry itself helps to keep us on track," says Chung. "If more members are looking for critical illness coverage we pass that proposal through the construction association and our trustees for approval to add to the packages we offer."
BCCA EBT can also offer many additional construction-specific benefits because of its structure. Unlike insurance companies, the trust is not structured to make a profit and margins are designed to be thin. Any excess funds collected by the trust are plowed back into additional benefits for clients. For example, the trust’s accidental death and dismemberment benefit offers a rider that pays twice what a typical policy would pay in the case of a construction-related incident.
"Any time an employee of a member company calls our employee and family assistance plan, that’s paid for out of our surplus," says Chung.
Understanding the construction industry helps to keep the plan in balance. Anyone looking to join the pool undergoes a risk assessment and is then offered a plan that reflects that risk. That rigorous screening ensures that the overall plan undergoes no unexpected price hikes.
The trust team also follows the needs of clients to help fine tune coverage to their individual requirements. For example, an aging workforce typically requires more prescription glasses, so employers can enhance vision care coverage.
"If we notice a spike in back injuries for an employer, we will typically work with that employer to assess the reason for that spike, and assist them with wellness programs, or whatever is required to reduce those injuries," says Chung. "That isn’t simply cost control but a reflection of our concern for the wellbeing of our members. We look at ourselves as the servants of the trust. What we do isn’t rocket science and how we do it isn’t rocket science either. As a construction industry trust, why we do it is what sets us apart."
This content is sponsored by BCCA EBT in collaboration with CMD Media. To learn more about BCCA EBT, visit www.bccabenefits.ca.
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