Clarification re: LTD's retroactive payments from CPP-D


#1

Hi again
I just need clarification about overpayments if approved for CPP-D while on LTD.
Wont know until Sept 2017.

(Diagnosed with Sarcoidosis in 2007 - entrance to lungs but did not take time off work - improved in about 8 months - disease still there but trace/stable or dormant .- don’t think CPP-D would look at that date but not sure.

Relapse and progression of Sarcoidosis in 2014 with worsening of disease. Diagnosed with Sarcoidosis in Lungs, heart and systemically - lymph - Nov 27, 2014. Pushed thru until Feb 2016 - treatment not working & too ill to work

Re: Worsening of symptoms: started off with a 10 week medical leave - Feb 18, 2016 - paid by hospital
Approved for STD - April 28, 2016 - declined June 26 (not enough medical info), won appeal and reinstated until July 6, 2016 (end of short term coverage).
LTD - approved July 7, 2016 - ongoing Two year mark is Feb 18, 2018.
60% of my salary and I pay the taxes which are taken off insurance payment.

If approved for CPP-D, my understanding is that insurance company can take out retro active payments (over payments) from CPP-D from when I started my STD on April 28, 2016 and then going forward they would just subtract what I get monthly from the CPP-D from what they pay me monthly on LTD.
However, if I get retro payment from CPP-D to cover Nov 2014 (first diagnosed) to Feb 18, 2016 while still working and not on LTD - LTD would not be entitled to that income - only from STD April 28 onward.
Thanks for clarification


#2

CPP-D will only go retroactive from 15 months from the date you applied- no matter how long ago you qualified.

The only exception is if you could not apply earlier due to a severe mental impairment and/or you were physically unable to apply earlier .(Think coma)

And from the retro the first 4 months there is no payment (like a deductible) So you only can receive 11 months retro.


#3

Thank you! I sent a reply earlier but I don’t think it got saved.


#4

You can only get 12 month of retroactive payments from CPP-D (as per their website).

I personally don’t expect to pay retro for an STD period as it was managed by a different insurance company.


#5

The reimbursement to LTD Insurer is only for the months where there was an overlap of LTD payment and CPP retro payment.


David Brannen

Disability Lawyer with Resolute Legal

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#6

I don’t know I was on STD, I was on something called “salary continuance” where I got reduced paychecks from my employer (my understanding is they get this money back from the insurance company) and now I am definitely on LTD.

I’m afraid if I don’t know how everything works that I’ll be taken advantage of.


#7

The STD period is normally not part of the period of CPP/LTD reimbursement under the Policy. I think you just need to wait and see what they propose as the reimbursement.


#8

Thank you for this information - just trying to understand this so I can be prepared.


#9

Thank you David! I think I am just getting over anxious with all of this and not feeling well to bout.