Importance of Insurance

In the fall of 1963, the Civil Service Federation (CSF) announced a Group Life Insurance plan for members and Civilian Personnel Officers only. The National Defence Employees Association (NDEA) set about establishing its own administration for this plan; Bev Anderson, who had just retired after 26 years in the Canadian army, was hired in 1964 as Insurance Administrator. It was anticipated his salary would be paid by insurance plan rebates from Sun Life and that proved true for many years.

One clear benefit of the plan was that it provided coverage of dependents, which the Government Supplementary Death Benefit Plan did not. Eight thousand applications were received almost immediately. The plan was deemed a success when it was learned that 65 % of the overall membership had signed up, representing 90 % of the male and 20 % of the female population.

An unexpected benefit was that the plan significantly undercut the life insurance premiums of the one offered by NDEA's longstanding rival the Civil Service Association of Canada (CSAC). CSAC members who sought the "no-medical requirement" CSF plan would have to join NDEA. NDEA made quite certain that all defence personnel were aware of that fact. The results were quite encouraging.

The boosted membership could not have come at a better time. NDEA had reached a high of 20,058 in August 1958. However, departmental reductions and slack recruiting had allowed that figure to plummet to 15,762 by November 1963. NDEA not only needed the popularity of the plan. It also needed CSAC members. By July 1964, NDEA membership had soared back to 18,500.