LTDI Benefit Amount

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 percent of the employee’s pre-disability salary which is effective on completion of the elimination period. 

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Benefit Reductions

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

  • the amount of disability benefit entitlement, excluding children’s benefits and cost-of-living increases, under the Canada Pension Plan and the Quebec Pension Plan

  • the amount of compensation under the Workers’ Compensation Act, excluding cost-of-living increases, third party payments, compensation related to employment with another employer, and compensation for an injury unrelated to the disability

  • the amount of benefits payable from any other group disability plan sponsored by the employer

  • by loss of income benefits under an automobile insurance plan, to the extent permitted by law

  • vacation leave pay

  • the amount of earnings received from employment or self-employment, other than a rehabilitation program

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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About this Directive

Authority:   Public Service Long Term Disability Income Continuance Plan Regulation - Part 4
Application:   Organizations under the Public Service Act
Effective Date:   19 March 2014
Contact:   Benefits

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