How are back payments divided by the insurance company?

I was on STD for 4 months and now I’m on LTD (an estimate of CPPD is deducted).
When CPPD is approved, it’l be back dated to the start of STD.
My question is, is the lump sum divided by the number of months since STD started of is it all taken by the insurance company, ie. will I get the balance for the months where CPPD was estimated?
I hope that is clear, it is hard to explain my question.

yes you will get to keep a portion if your LTD is estimating. Whatever they have shorted you will be adjusted so you will get full monthly payments back

Did they start to deduct your CPP-D from LTD already?

I thought they did but I don’t think it is that.
June was only a partial month for me.
I have tried tons on calculations and I can’t get the number they got.
I called the company but the person never called last week.
I doubt I am very important.
I never got a detailed letter, just a here’s the direct deposit info. :frowning:

They don’t send detailed letters only general information. For example, $1,000 for the period from June 9, 2017 to July 9, 2017.

I guess, they would’ve informed you if they started to deduct CPP-D.

I want to know the math used for June.
It doesn’t matter much since July will be a full month.
I like to know stuff in advance though. :slight_smile:

I remember when I was approved they sent me a letter with the monthly amount of LTD. Do you have one? Or are you just using a percentage of your salary to calculate that amount?

The only letters I got was the STD approval and I am approved to be moved to LTD and the direct deposit statement letter for partial month of June saying the start and end date of June and the amount.
The benefits booklet says it is x% of my monthly salary up to $y and then z% of the rest of my monthly salary.
My calculation is it’s 60% overall.
I can’t get the number they get for the partial month of June (although I can get close :-)).
It doesn’t matter because it is what it is but I need to know the details of everything. :slight_smile:

It is not straightforward. They probably use after tax earnings to calculate it and your salary as of January 1, 2017 when the policy was renewed.

It is a simple dollar for dollar reimbursement for any months (or days if partial month) that there was an overlap of LTD paid and retro payment of CPP. Once you get the payment explanation from Service Canada you can compare the payment periods to calculate the amount owing to LTD. It is typical that almost the entire amount will go to LTD if there is complete overlap and since being approved for CPP you have continued to receive the full LTD in meantime while they figure this out.

David Brannen

Disability Lawyer with Resolute Legal

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