I’ve been on LTD and CPPD since 2011. I’ve received a letter from my employer advising that in 12 months I’ll be losing my health/dental benefits through my employer but there’s no mention of being terminated for frustration of contract, just that they’ll be cancelling my health benefits. Can an employer terminate your health benefits while you’re on LTD but not terminate your employment? Are they allowed to terminate health benefits?
My understanding is, yes they can unless your employment contract states otherwise. Maybe offer to pay the premiums yourself so you can keep your health benefits. Private health benefits cost way more with just a fraction of the coverage.
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I would get legal counsel. The employer could be in violation of the T&C of your contract.
Wow you got benefits for a long time. I thought 1 year post was alot. But,to be fair, they did frustrate my contract
I just went through this last year. I retained counsel who made a claim for frustration of contract and was paid out for 10 years of employment.
Thanks for the info. I might just do that. The only thing is let’s say they pay me out 10yrs then I’d get screwed by the insurance company that provides my LTD. Any money I’d get from the employer for frustration of contract the LTD insurer will deduct from what they pay me. I’m not 100% sure but I’d assume they’d consider that income so they’d nail me
Does your LTD policy actually state severance is an offset to your LTD benefits. Mine states only income or profit from working are offsets. Since no work is involved in getting severance my insurer can’t touch it.
I’ve also been told by two LTD lawyers that a policy must actually state “severance is offsetable” or something like they for insurer to be contractualy entitled to any of it.
All the master contracts I have seen specify what types income can be offset. If it doesn’t specify the type of income you are getting (rental, stocks, severance, passive, vacation payout, etc) then they can’t offset it.
It’s a very good question but I don’t have a copy of the LTD policy because it’s a group plan not a personal one so I don’t know. Years ago I asked for a copy and was told nope… it’s not your policy…it belongs to the employer. And when I get the annual Claimaint Statement from the LTD provider it asks to list any ‘other income received’ but I’ve never listed stuff like a tax refund as an example.
As a group policy member you are entitled to a copy of your LTD policy. Them telling you nope, is actually against the law in most provinces
I’ve been with this insurance company for many years now and I can’t tell you how many times I’ve caught them lying or giving me questionable answers. That’s why after the third year being with them I said I no longer want to be contacted via telephone and only email. That way everything is tracked. And I’m happy to say I’ve never had to verbally speak with them again. And not having to speak with them on the phone is a massive weight off my shoulders
That’s interesting. I wonder what @David_Brannen may advise you to do to get the policy details if they say you are not entitled to see the policy.
@bellita74, hi I’m curious what you mean when you say they paid you “for 10 years of employment.” Does this mean you were employed for 10 years and you got a severence, or you got 10 years worth of salary as severence? If the former, do the 10 years include the time you have been on LTD?
I was using 10yrs as an example. I’ve not been paid out anything and I’m still an employee. It was just an example.
You are not technically entitled to a copy of the “Policy” in all provinces. Rather, most say you are entitled to a summary or certificate outlining the benefits. I am planning to cover this in detail an upcoming livestream.
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David Brannen
Disability Lawyer with Resolute Legal
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Can an employer terminate your health benefits while you’re on LTD but not terminate your employment? Are they allowed to terminate health benefits?