PARIM is the Professional Association of Residents and Interns of Manitoba

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INFORMATION FOR PHYSICIANS

Overview
In June 2002 the MMA negotiated Manitoba Health funding for a Maternity/Parental Benefits Program for eligible Manitoba physicians.  The Program will provide partial income replacement for a physician parent who wants to take a leave from practice soon after the birth/adoption of a child.  Benefits were paid retroactive to April 1, 2002.  Physicians who were on a maternity/parental leave at that date, or started a leave thereafter, are eligible to claim benefits from the MMA Program.

Am I eligible to claim?
If you have practiced medicine or been a Resident in Manitoba in the 12 months immediately prior to taking a leave of absence to care for a newborn or adopted child aged 5 or under, you are eligible to file a claim for benefits.  You must take a minimum two weeks leave.  This Program covers all Manitoba physicians regardless their income modality (fee-for-service or alternate payment mechanisms).  However, since Manitoba Health funds the program, only physicians (including Residents) who receive their “qualifying income” directly or indirectly from Manitoba Health are eligible for a benefit.  Physicians must have held a license during their qualifying period to be eligible to claim benefits from this Fund.  Physicians who practice in Manitoba under a short-term license are not eligible to claim benefits from this Fund.

What benefits are available?
In general, you are eligible for up to 17 consecutive weeks of benefits as long as you have earned qualifying income for at least 17 weeks in the 12 months prior to your leave.   If you have earned qualifying income for less than 17 weeks in the year prior to your leave,
your maximum benefit period will be equal to the number of weeks you actually worked.

Your claim period can begin as early as four weeks prior to the expected birth/adoption, but no later than six weeks after the baby’s discharge from hospital or date of placement of your adopted child.  In effect, the claim period expires 23 weeks after the adoption/discharge (6 + 17 = 23).  No claims will be paid after that time.   

The amount of your weekly benefit is based on your qualifying income over the past year.  It will be calculated as 60% of your average gross weekly earnings over the best six months of the 12 months (or portion thereof) immediately prior to your leave.  However, the maximum gross benefit is $1,200 per week, regardless of your qualifying income.  If you have worked less than six months in the past year, your qualifying income will be calculated on all weeks worked prior to the leave.

Can I earn other income while on leave?
While benefits are being paid, you may also receive up to $2,000 gross income per bi-weekly claim period from all other sources.  Your weekly benefit will be reduced, dollar for dollar, if you receive more than $2,000 income from other sources during that bi-weekly claim period.  Other sources of income include Employment Insurance, salary top-ups, vacation pay, fee-for-service remittance income, disability insurance benefits, etc.  For example, a physician who is eligible to receive a $1,200 weekly benefit, who also earns $2,500 fee-for-service income per bi-weekly claim period, would receive only ($2,400 - $500 excess earnings) = $1,900 for the bi-weekly claim period from the Maternity/Parental Benefits Program.  If you take a paid vacation period at the start of your leave period, or you expect a significant fee-for-service remittance in the period immediately after the birth/adoption, you may be wise to delay the start of this program (it can begin as late as 6 weeks after the birth/adoption).

Can I share the leave with my spouse?
If both parents are physicians, they can sequentially share the 17 consecutive week benefit period if both take a leave of absence from their practice.  The amount of benefit paid in any week will be based on the qualifying income of whichever parent is on leave at that time.

What else should I know?
Benefits are only payable to physicians who are Resident in Manitoba.  Relocation from the province will automatically terminate benefits.

Maternity/Parental benefits are taxable and the MMA is required to submit income taxes on your behalf.  We automatically will submit taxes at the maximum rate. A T4A slip will be issued to you for income tax purposes.

How do I apply?
Contact Kim Irvine, Trust Programs Coordinator at the MMA by calling 985-5865 or
985-5888 or for rural members 1-888-322-4242.  She will send you an Application for Benefits form. You must complete and return the Application form to establish your eligibility for benefit (the maximum weekly benefit you are eligible for and the maximum number of consecutive weeks that you may claim).

Thereafter, she will send you a series of simple biweekly Claim forms.  To be eligible to receive a benefit for each biweekly period, you must submit a Claim form to detail income you have received from all other sources during the claim period.  The MMA will calculate and deposit your benefit directly to your bank account two weeks following the end of each claim period.

What information does the MMA require?
You must initiate your claim within 6 weeks of the adoption/discharge.  To initiate your claim the MMA needs the following information, which you will be asked to provide on the Application for Benefits form:

Identifying information about yourself
Key dates affecting your maternity/parental leave
Information on your qualifying income for each month during the 12 months prior to your leave
A void cheque for direct deposit of benefit payments to your bank account.

In addition, for audit and verification purposes, you must agree to provide copies of relevant financial reports (e.g. income tax returns, Manitoba Health remittances, other employer remittances, etc.) upon our request.

Finally, you must submit proof of the birth/adoption, such as a physician’s or hospital’s report of the birth, or birth certificate/adoption certificate.

Further Questions?
If you have any other questions or concerns about this Program please contact Kim Irvine, MMA Trust Programs Coordinator, by phone: 985-5865 or 985-5888 or 1-888-322-4242, fax: 985-5844, or e-mail kirvine@mma.mb.ca.
SAMPLE CALCULATIONS

1.    Commencement of Benefits
    In many situations, the physician is probably advantaged by delaying the start of benefits as long as possible (the benefit period can start a maximum of 6 weeks after actual commencement of the leave).  In that manner, more of the leave taken can be compensated.

    Example
Actual leave began Wednesday, January 30, 2002.
Physician chooses to start benefit period 6 weeks later on Wednesday, March 13, 2002.
Benefits are payable for a maximum of 17 consecutive weeks thereafter, and thus the benefit period will end Wednesday, July 10, 2002.
However, no benefits are payable for the period prior to the April 1, 2002 start-up date of this program, therefore the physician will be eligible to claim benefits from Monday, April 1, 2002 to Wednesday, July 10, 2002.

    Example
Actual leave began Wednesday, July 3, 2002.
Physician receives vacation pay for first 4 weeks of the leave (or past fee-for-service remittance during first two/three weeks of leave).
Physician chooses to start benefit period about 4 weeks after actual leave began so as to reduce/eliminate the loss of benefits due to having a simultaneous income from another source.
Physician chooses to start the benefit period Saturday, August 3, 2002 and is eligible to receive benefit for a maximum of 17 consecutive weeks thereafter ending Friday, November 30, 2002.

2.    Determination of Qualifying Income & Benefit Amount
    Your benefit level is affected by your past gross income.  You must report your monthly gross income on the application form so we can calculate your qualifying income.  It will be calculated as 60% of your average gross weekly earnings over the best 6 of the 12 months (or portion thereof) immediately prior to your leave.  However, the maximum benefit available to all claimants is $1,200 per week regardless of prior income.

    Example
Salaried physician who earned $12,000 gross income per month for all 12 months prior to the start of actual leave period.
Gross income on best 6 months is 6 x $12,000 = $72,000.
Qualifying income per week is $72,000 ÷ 26 weeks = $2,769
60% of qualifying income is .6 x $2,769 = 1,661.
Benefit is maximized at $1,200 per week.

    Example
A fee-for-service physician worked only 8 months prior to start of actual leave.  We use the gross income from the best 6 months: $10,000, $11,000, $12,200, $10,900, $9,200, $10,500.
Total gross over best 6 months = $63,800.
Qualifying income per week = $63,800 ÷ 26 weeks = $2,454
60% of qualifying income is .6 x $2,454 = $1,472
Benefit is maximized at $1,200 per week.

3.    Factors Which Reduce Your Benefit Amount
    You are allowed to receive a maximum of $2,000 of income per bi-weekly claim period from all other sources in addition to your maternity leave benefit.  If you earn more than that, the extra earnings are deducted dollar for dollar from your benefit.

    Example
Salaried physician is entitled to $1,200 per week from the Maternity/Parental Benefit Program.
Physician also receives $417 a week for E.I. benefits.
There is no reduction to the leave benefit.

    Example
Physician is entitled to $1,200 per week from the Maternity/Parental Benefits Program.
Physician also receives $2,500 remittance for past fee-for-service activity.
Physician receives $1,200 leave benefit for one week and $700 for the other week because she exceeded the $2,000 bi-weekly maximum income from other sources by $500 ($2,500-$2,000 = $500).