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Long term disability insurance

Summary

The Long Term Disability Plan covers you if you cannot perform your work because of a serious illness, accident or injury. These benefits are subject to cost-of-living adjustments that reflect changes in the consumer price index.

BRONZE Plan

After 119 days of sick leave benefit, subject to insurer approval, you receive 60 % of your pre-disability salary, up to $8,500 a month.

The University pays 100% of the premiums.

These benefits are taxable because the University pays the full premium.

SILVER Plan

After 119 days of sick leave benefit, subject to insurer approval, you receive an additional 4% of your pre-disability salary (top-up).

The University pays the basic premium (BRONZE option) and you pay the difference to pay for the top-up.

The top-up portion of the benefits are non-taxable because you pay for it.

GOLD Plan

After 119 days of sick leave benefit, subject to insurer approval, you receive an additional 8% of your pre-disability salary (top-up).

The University pays the basic premium (BRONZE option) and you pay the difference to pay for the top-up.

The top-up portion of the benefits are non-taxable because you pay for it.

Eligibility

  • A permanent employee
  • You are under age 65

Qualifying period

Long Term Disability benefits are payable after a qualifying period of 119 calendar days of Sick Leave benefits and approval by Manulife, provided you are under the care of a qualified physician.

An application for Long Term Disability benefits must be completed, and sent to Health and Wellness sector of Human Resources, who will forward it to Manulife. Once your application has been approved by Manulife, you will begin to receive your monthly Long Term Disability benefits.

Benefits are paid under this plan for periods when you are totally or partially disabled and are unable to perform all of your duties or similar duties at the University.

Premiums

The University pays the full cost of the basic Bronze option and you pay the cost of the Silver or Gold top-up portion.

  You pay The University pays
Bronze option (basic benefits: 60% of pre-disability earning) $0 $2.69 per $100 of benefits
Silver option (4% top-up) $4.33 per $100 of benefits $0
Gold option (8% top-up) $4.52 per $100 of benefits $0

Even if you choose to pay for an additional option (silver or gold), the basic plan (bronze) remains in effect and the University pays for this portion of the plan.

Taxation of benefit payments

Benefit payments from the Bronze option are taxable because the University pays the premium. In addition, the Bronze portion of your benefits under the Silver and Gold options are taxable, because the University pays that part of the premium. Top-up benefits under the Silver and Gold options are not taxable, because you pay the premium.

Coverage

Long Term Disability benefits are paid as long as you are considered totally or partially disabled until you recover, reach age 65 or die, whichever occurs first.

Under the Long Term Disability Plan you receive the following monthly benefit:

Bronze option

You are automatically covered under this basic Bronze option, the cost of which is entirely paid by the University.

Any benefits paid are considered taxable income.

Silver option

  • You receive the Bronze benefit plus an additional 4% of your pre-disability salary
  • Annual cost-of-living adjustment with CPI, up to 2% (instead of 1% under the Bronze option) applied to the entire benefit

This option tops up the coverage provided by the Bronze option. The University pays for the basic Bronze coverage – and you pay the full cost of this upgrade.

The added top-up benefit is not taxable, because you pay for it even though the bronze portion is taxable.

Gold option

  • You receive the Bronze benefit plus an additional 8% of your pre-disability salary
  • Annual cost-of-living adjustment with CPI, up to 3% (instead of 1% under the Bronze option), applied to the entire benefit

This option tops up the coverage provided by the Bronze option. The University pays for the basic Bronze coverage – and you pay the full cost of this upgrade.

The added top-up benefit is not taxable, because you pay for it even though the bronze portion is taxable.

Exclusions

No benefits will be paid from the Long Term Disability Plan unless you are under continuing medical supervision and treatment. In addition, benefits are not paid for any disability resulting directly or indirectly from:

  • Intentionally self-inflicted injury or illness,
  • Insurrection, war, service in the armed forces of any country, participation in a riot, or commission of a criminal offence, or
  • Pregnancy-related conditions, during maternity leave for which you are receiving Employment Insurance maternity benefits, or during a period when you take formal maternity leave permitted under provincial or federal law or by mutual agreement between you and the University.

In addition, no benefits will be paid if you:

  • Fail to furnish proof of a total disability or continuing partial disability or to submit to a doctor's examination requested by Manulife,
  • Are incarcerated in a prison or mental institution,
  • Refuse to participate in a rehabilitation program approved by your doctor and Manulife,
  • Are engaged in an occupation or employment not approved by Manulife, or
  • Leave Canada without approval from Manulife, for more than six months in a 12 month period.

Cost of living adjustment

After adjustments for other disability income have been made, your Long Term Disability benefits will be increased each January 1, based on your level of coverage.

Adjustments to Long Term Disability benefits

The benefits you receive from the "BRONZE"plan of the Long Term Disability Plan is adjusted to ensure your benefit payments do not exceed the monthly maximum of $8,500. Income from the following sources will be taken into account:

  • Benefits payable from a public pension plan (the Canada/Quebec Pension Plan), excluding benefits paid on behalf of your dependents, or
  • Any benefits you may be eligible to receive under any Workers' Compensation Legislation.

Your University benefits will be reduced by the estimated amount of income you are entitled from government plans, unless you demonstrate to Manulife that your claim has been denied.

Manulife will further adjust your benefit payments so that your income from all sources does not exceed 85% of your gross monthly indexed pre-disability earnings for total disability, and 100% of your gross monthly indexed pre-disability earnings for partial disability. Benefit payments from the following sources will be considered:

  • A public pension plan (the Canada/Quebec Pension Plan), or pension benefits from any employer,
  • Earnings from another employer for work of any kind (except rehabilitation),
  • Any other group, association or franchise insurance plan,
  • Any other government plan, excluding Employment Insurance benefits,
  • Benefits from any Workers’ Compensation Legislation,
  • Any provincial automobile insurance, and
  • Earnings recovered under Third Party Liability provisions.

Subsequent increases in amounts payable from other plans will not affect your benefits under the Long Term Disability Plan.

Government plans

In addition to the University’s plan, Long Term Disability benefits may also be payable from government plans, provided your disability is work related. Consult the following public sites:

University benefits while on Long Term Disability

Benefits maintained by the University

Once you begin receiving Long Term Disability benefits, your coverage under the following plans will be maintained by the University on your behalf for as long as you are eligible to receive Long Term Disability benefits, until you recover, reach age 65 or die, whichever occurs first:

You must request a premium waiver if you wish to be exempted from paying the following premiums: Optional Employee Life Insurance Plan and Optional Spouse Life Insurance Plan.

University of Ottawa Pension Plan

While you are on Long-Term Disability, you remain a pension plan member and continue to earn a pension until you leave the University, take your pension or die, whichever occurs first. Collective agreement (section 40.2.2.2)

Credited vacation leave

Regarding service credited, for the determination of vacation entitlement, when you are on disability status in the course of a calendar year, such service shall be credited in proportion to the overall fraction of normal workload performed by the member while employed by the University in that year. Collective agreement (section 40.2.2.4)

Sick leave

While on total disability, you are not entitled to sick leave Collective agreement (section 40.2.3.2 d)

While on partial disability, you are entitled to sick leave, provided the condition requiring sick leave is distinct from the condition leading to long-term disability. For the period where you are on sick leave, compensation and disability benefits are determined in a manner established from time to time by the parties. Collective agreement (section 40.2.4.3c)