5 October 2018 13:30
Photo : Freepik
Universitas announced that it will hold a new vote on 10 December next to the policyholders of the plans, registered education savings plans (RESPS) REEEFLEX and Universitas. They are invited to comment again on changes to eligibility criteria for educational assistance payments.
These changes, which had led to the dissatisfaction of the several underwriters, entered into force on January 1, 2018. The subscribers had voted 95% in favour of the changes to REEEFLEX and 91 % for UNIVERSITAS, but several indicated after the fact to have been ill-informed of the effects that the changes may have. Several media outlets report that the easing of the criteria was able to melt the exchanges of approximately 20 %.
Poorly understood changes
In 2017, the Universitas had suggested relaxing the eligibility criteria for education assistance payments from their RESP collective to abolish the structure of the payments in three installments. It was no longer required that each education level, or school year to be successful as a prerequisite to receive the payment.
This allows any beneficiary to receive all payments and government grants, as it provides a proof of registration at a post-secondary program to be eligible.
“We are sensitive to the fact that some of our subscribers have said that they have not grasped the impact of proposed changes on the amount of money available, supports Isabelle Grenier, executive vice-president of Universitas. After discussion with theAuthority of the financial markets in recent weeks, we are committed to proceed with the holding of a second vote. This approach is more transparent. “
Compensation to underwriters disadvantaged
The Authority has specified that in the event of a vote in favour of the maintenance of changes, Universitas undertakes to put in place a plan of economic measures of at least one million dollars to mitigate the financial impact for policyholders who would be disadvantaged.
In the case where the vote was unfavorable to the maintenance of changes, Universitas undertakes to negotiate and implement a financial compensation appropriate to the