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
- Once you have completed your probationary period
- 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 Canada Life, 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 Canada Life. Once your application has been approved by Canada Life, 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 | $3.317 per $100 of benefits |
| Silver option (4% top-up) | $5.542 per $100 of benefits | $0 |
| Gold option (8% top-up) | $5.576 per $100 of benefits | $0 |
The above premiums do not include applicable Retail Sales Tax (RST) based on the province of residence (in ON, QC, and MB).
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
- 60% of your pre-disability salary, to a maximum of $8,500 per month
- Annual cost-of-living adjustment with CPI, up to 1%
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 Canada Life,
- Are incarcerated in a prison or mental institution,
- Refuse to participate in a rehabilitation program approved by your doctor and Canada Life,
- Are engaged in an occupation or employment not approved by Canada Life, or
- Leave Canada without approval from Canada Life, 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.
- Bronze option - by the Consumer Price Index (CPI) up to 1%
- Silver option - by the Consumer Price Index (CPI) up to 1% + top-up of 1% (total of 2% on entire benefit)
- Gold option - by the Consumer Price Index (CPI) up to 1% + top-up of 2% (total of 3% on entire benefit)
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 Canada Life that your claim has been denied.
Canada Life 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:
- Canada Public Pensions
- Quebec Pension Plan
- Workplace Safety and Insurance Board (WSIB)
- Your provincial automobile insurance plan
University benefits while on Long Term Disability
Benefits maintained by the University
Once you begin receiving Long Term Disability benefits, your insurance coverage 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 Life Insurance (Employee, Spouse, Child) and Optional Accidental Death and Dismemberment Insurance.
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.
Sick leave
While on total disability, you are not entitled to sick leave
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.