Sun Life Financial announced that it will continue to administer the Federal Government’s Public Service Health Care Plan (PSHCP) after being selected as the first ranked bidder under a competitive government tendering process. The multi-year, multi-million dollar contract went into effect on September 24, 2009 and provides for plan administrative services. Sun Life has been the administrator of the plan since 1996. According to the PSHCP management, the selection of the insurer brings the government one step closer to the introduction of a pay-direct card. By AMC’s estimate, this would bring the proportion of private plan beneficiaries with a card to 80 per cent or more.

The PSHCP is the largest employee benefit plan in Canada, representing three per cent of the group market with more than 580,000 active and retired plan members.