My case worker has urged me to apply to VAC. For rehab or treatment benefits.
PTSD I endure is older than my previous Military Service.
I have CPP-D and that was paid directly to the insurer
Can they do this? It is not listed as an offset in the master policy. Just a vague “any source” clause. They require everyone to apply for CPP-D. It is impossible to have everyone apply to VAC.
My case worker has urged me to apply to VAC. For rehab or treatment benefits.
My guess is that the vagueness is legal.
Even if they need to be specific, cppd is a common offset.
I don’t know what vac is but it is probably so they can save money.
If applying now would be an early age and get less money than if you wait (like a pension), I wouldn’t apply for it.
You should get the free consult from resolutelegal.ca
VAC. Is Veterans Affairs Canada. A department of the federal government that assists or hinders Veterans, depending on who you talk to.
I would apply. Likely a long process. They will deny help if it is not related to military service and you will look good for trying. Or they will say you are too ill and rehab would not be helpful.
If it is vague then you can argue against. They wrote the contract and any ambiguity goes against the Insurer.
NO!!! DON’T DO THIS FOR LTD INSURANCE COY!!! YIKES???
If you qualify for VAC benefits, LTD has nothing to do with this because the benefit from VAC would be a non taxable lump sum (used to be via disability pension) that is not reported to CRA; so why would you report it to anyone else? If you do qualify (and it aint easy getting anything from them either) you will be assessed for your disability in sole regards to your military service which is totally separate from the reasons why you get LTD from a different employer. If you get “treatment” benefits such as psychological therapy, yes that is a benefit to you to help you. Perhaps your LTD caseworker was just trying to help you out for further treatment but by no means ever tell them you are going to apply or seek benefits from VAC. NEVER…EVER!
Great advice–thanks for the warning
If they ask me they have to ask everyone even those who didn’t serve. What a waste that would be.
yes, but you must have had a conversation with them that you once served. That’s Fine! thank her for her advice but do not continue to report that you are even thinking of applying. If she ever asks again, directly tell her that you are not obligated to apply and at present you are not. It is not in the contract and you have no obligation to seek other benefits other than CPPD or your work related Pension to offset any LTD.
Hi Derek, Every group insurance plan is different, so it is impossible for anybody to provide you with legal advice unless they have reviewed the LTD plan of YOUR current employer and know all of the details of your individual situation.
It’s possible that the advice you have received above might be good generic advice as a starting point if you happen to be a Canadian Veteran who retired and took up a second career with the Federal Public Service of Canada. However, generic advice, doesn’t apply to everyone even in that one situation. What’s quite possible is that you, or somebody else reading this forum, is NOT an employee of the Federal Public Service of Canada on LTD, and in that case, the advice you have received might not be the best approach to take.
Please seek professional legal advice as you have a lot to lose if you get cut of your LTD, even while being fully disabled, due to not adhering to your obligations in the contract of YOUR current employer. You really need to understand your rights and obligations from an employment and LTD perspective and this always requires a legal consultation as it varies by province, by employer and by LTD contract. David has a good article posted on this topic elsewhere on the site.
No, I’m not a lawyer, but I definitely know what I don’t know. And Jammer, no, I don’t work for the Federal Public Service either! I just stick up for them, because I hate seeing people beat up on easy targets and blame them for all their problems. Federal Public Servants get what they signed up for - nothing more and, hopefully, nothing less. Isn’t that what we all expect?
I agree with Joanne’s views on this one. As a general rule, you are always better applying to as many sources of disability as possible. We have a few ongoing cases involving veterans and the clash between LTD and the VAC benefits. VAC benefits are not only a lump sum payment, there are monthly benefits paid as well for a certain period of time. VAC covers medical and other things above an beyond disability payents, so if there is any chance you could be approved for VAC you would want to apply. If you qualify for any type of disability payment, then it would be possible that it can be offset by your LTD policy. You mentioned the all sources clause as this is a catch-all that could include a deduction if VAC payments + CPP + LTD exceeded a certain level of income.
Disability Lawyer with Resolute Legal
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I’m not providing “legal” advice, just good advice brought on by years of experience with this. Correct that only if you served in the Canadian Armed Forces or RCMP are you entitled to VAC benefits if your disability is directly related to service. i.e you have a bullet wound from your service that causes further problems or you hurt your back during your Service. What I am saying above is of course any LTD coy would love for you to get VAC benefits so that they may try to offset. You are not obligated to apply and because some of those benefits are tax free they are meant to compensate you for pain and suffering and are not not not an income replacement mechanism. No LTD insurance company is allowed to offset these disability benefits as there was a recent class action against doing this over 7 years ago. There are however, depending on your situation, years served etc. other Financial income replacement benefits to help if you qualify. However, do not ever mix these two situations. Your VAC is specifically from your Service in CAF or RCMP. Your LTD is a separate benefit that tops you up from your after Service Employment. If you receive LTD benefits and request VAC Financial (not disability) benefits then VAC will offset your LTD income received until you reach 90% of your last Service Pay. For example, if at a certain rank you last earned $70K. Forget any disability awards you may get as that is not counted. Now you apply for an Earnings Loss Benefit. VAC calculates your net benefit by offsetting: CPPD, any CAF Pension, or any LTD from your most recent employment. For example: you get $12K CPPD, $25K CAF Pension and perhaps $25K LTD. You are now earning as far as VAC is concerned $72K which is more than 90% of $70K so your Earnings Loss benefits would be zero. But if LTD dropped you, then your Earnings benefits would kick in. This is a one way street. Do not go the other way unless you want to lose LTD. If you want to discuss further email me.