While I am waiting for a decision I thought I’d ask this, I understand that the CPP contributions are not deducted from the CPP-D payments but how about EI premiums as this deduction doesn’t make sense either but I don’t know if this is true. Does anyone happen to know anything about this? Thanks in advance!
EI is not deducted from CPP-D payments.
I don’t think anything is deducted from your CPPD payment, i was just approved (after 8 months waiting) and was told i would need to make income tax on it thats all. Why would you need to contribute to EI if you’re not able to work
Thanks Jammer, thought that would be the case but there are no sources anywhere that would explicitly say so. I find lot of information regarding this kept under covers so you just keep on wondering, how hard is for CRA to just put a one liner say BTW if you are on CPP-D you don’t pay CPP contributions or EI premiums… I am paying both on my LTDI payments maybe CPP contributions I can understand as some people whose condition is not severe or prolonged may return to work without having to apply for CPP-D but EI premiums why? The period that you are on LTDI you should be exempt.
I would ask.
Is it managed by an insurance company?
Yes it is managed by CanadaLife
I would definitely ask them.
Did you or your employer pay the premiums for your LTDI? If approved for LTDI do the payments come from Canada Life or does your employer pay the benefits. Depending on the abovem…EI, CPP, and income tax can be deducted from your LTDI payments.
Employer is self insured, CanadaLife manages the claim on their behalf. LTDI premiums are paid by the employers. I understand because the employer paid the premiums LTDI payments have income tax deducted, just don’t understand the CPP contribution and EI premium deductions or will I be able to get a refund (through taxes?) if my CPP-D claim is approved and most likely back dated to the date of onset.
Do you have a copy of your LTDI master policy? It should say in there what happens if your are approved for CPP-D.
In one of the webinars David mentioned that some very large employers just do salary continuation for disability, might that be it? I might ask my HR department about it if I were you.
As per Buckets365’s suggestion I just checked in the LTDI master policy and it doesn’t address this particular question. I am going to to follow up with HR like you suggested and see what they have to say. Although I am thinking… that if they have already handed over the CPP contributions to the federal government then most likely that’s where i will have to go to claim them back as I haven’t done my taxes for last year yet, I was hoping to learn the decision on my CPP-D application before I do that. Lot of guesswork right now as I don’t think it would be up to the individual insurer to decide whether they will deduct CPP contributions or not it has to be a federal government directive. I am personally leaning towards this…Service Canada says that we look at your cpp contributions till date (month when they make the decision) to calculate your entitlement, this way they do not have to offer any refunds even if the claim is back dated 11/12 months which would be the date of onset.
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Yeah I had some CPP deducted at source because I had some taxable benefits, the CPP premiums were returned to me when I did my taxes the next April.
Thanks Caro, hopefully this is what it is. Do they issue T4A(P) slips only in February or other times during the year as well?
That came on a regular T4 from my employer in February.
Also curious if you know if your LTD insurer will just deduct the amount you are approved for CPP-D from their LTD payment like is the case with most LTD insurance policies.
Yes they are going to. So there is no net benefit for me except for inflation related CPP-D increases. Hoping DTC will help out, every little bit matters now 