'Continuous growth is all about looking after the needs of our members'
Gary Sawatzky of the Alberta Retired Teachers' Association (ARTA) has held various roles throughout his career – each of which significantly influenced his approach to managing retirees' benefits plans.
“I've worked with ARTA for most of my career, starting as an analyst in benefits consulting, then moving through service roles and secondary consultancy, up to becoming the primary consultant, and then finally working for them directly as their COO. The group had come a long way, growing fivefold during my time with them. Such rapid growth meant we needed to ensure the needs of both older and younger retirees were looked after, bringing interesting challenges to plan design discussions.”
For Sawatzky, one core aim in his current role is furthering ARTA’s outreach while simultaneously looking after all their members’ needs.
“Continuous growth is all about looking after the needs of our members,” he says. “Retirees have significantly different needs and demands than active employees, so we need to take a different approach with the plan design.”
For example, ARTA's benefits plan includes unique provisions tailored to retirees.
“We provide several benefits that are not normally covered by active plans and have a different focus. Retirees love to travel, so our emergency travel plan is the best option available for our members,” Sawatzky explained. Their plan does not include a termination age or a stability clause for pre-existing conditions. “Our plan wording allows members to continue traveling without needing to track the last time they spoke to their physician or when their medications changed. This is very unique in the marketplace.”
Additionally, ARTA ensures that members have access to new drugs and technology.
“We began covering the shingles and RSV vaccines after they became available because our members benefit the most from them. We also implemented virtual physician services, as many members have mobility issues or they may no longer have a primary care physician.”
Sawatzky also addresses significant challenges within his role, particularly in maintaining and enhancing the value of ARTA's benefit plans.
“Our plan is voluntary and fully paid for by participants, most of whom live on a fixed income. Stretching their benefits premiums as far as possible is always our primary objective. A few years ago, we reached a tipping point where it made more sense to administer the plan ourselves, generating savings that were returned to the plan.”
Another innovative step was opening ARTARx, one of the first plan-owned pharmacies in the country.
“Members are free to use any pharmacy, but those who use ARTARx enjoy higher coverage levels and maximums. All profits generated are returned to the plan to offset premium increases.”
And, looking ahead, Sawatzky sees maintaining comprehensive coverage while managing costs as the biggest challenge.
“New drugs and technology are inherently more expensive than those they replace, and their demand tends to increase in retirement. Retiree plan sponsors must carefully consider the effectiveness of these new products and drugs.”
“At ARTA, we are always open to new ideas and ways of doing things as long as they benefit our members. Retirees’ benefits needs are considerably different than those of active employees. Recognizing that enables us to continue providing the best retiree benefits available.”
