Long Term Disability Income benefit amount directive

Overview

This directive sets out the benefit amount to which employees are entitled and reductions to the benefit amount under the Long Term Disability Income (LTDI) Continuance Plan.

Amount of entitlement

The benefit amount to which an employee is entitled will be 70% of the employee's pre-disability salary which is effective on completion of the elimination period.

Benefit Reductions

The bi-weekly LTDI benefit amount to which an employee is entitled, shall be reduced by:

• the amount of disability benefit entitlement related to the LTDI claim excluding children's benefits and cost-of-living increases, under the Canada Pension Plan, Quebec Pension Plan or a government sponsored disability plan in another country which has a reciprocal or social security agreement with Canada or the Quebec Pension Plan;
• the amount of compensation under the Workers' Compensation Act, excluding cost-of-living increases, compensation related to employment with a concurrent employer at the time of disability and compensation related to prior permanent impairments;
• the amount of benefits payable from any other group disability plan(s) sponsored by the employer;
• vacation leave pay;
• the amount of any other remuneration received as a result of employment or self-employment, other than a rehabilitation program;
• loss of income benefits paid under an automobile insurance plan, to the extent permitted by law.

If an employee receives any of these amounts in the form of a lump sum payment instead of bi-weekly installments, the employee's benefits will be reduced by the equivalent commuted bi-weekly installments.

An employee must apply for Canada Pension Plan or Quebec Pension Plan disability benefits within 12 months of being placed on the plan and must provide proof of application to the plan administrator. If an employee does not apply for benefits after reasonable notice to do so, the maximum Canada Pension Plan or Quebec Pension Plan disability benefit may be deducted.

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