This forum seems to seem to have very valuable information which I was happy to have found through Google. It cleared up CPP stuff I did not know I needed to know until yesterday when I was told I needed to apply.
Here’s my problem now. I cannot get a straight answer from anyone to my question and I am being forced by my employer to make a decision before Dec. 31st.
Option 1 is clear but for Option 2 I have received several different answers.
Basically I have to options:
OPTION 1) Medically Retire —> I still received LTD -less a retirement pension (only if Health Canada approves it) -less CPP that they just told me to apply for.
End result is that I know I will be worse off after paying all the deficiencies I owe and Phoenix issues with this option. This is why I am even considering option 2 at all.
OPTION 2) Resign -----> I’m under 50 so I can take the Transfer Value of the pension.
I am just not sure how LTD will see this or treat this value and I have been told so many different things that no one can confirm.
OPTION 2) is what I am trying to understand is what happens with LTD if I Resign and how transfer value is treated.
Here’s what I have been told:
LTD with Sulife is a separate contract.
If I resign or am terminated or retire it still continues as is until 65 or if I recover.
I cannot double dip.
Then the rest is unclear…
A) The pension centre lady said if I resign and take the transfer value my LTD is immediately cutoff!! AND I owe the past 3 years of benefits to pay back.
B) The union pension expert says LTD will NOT cut me off. They will subtract that same medical retirement pension annuity (same amount as if I medically retired) and just pay me less each month until I am 65. [I cannot even get an answer if the amount clawed back is high pension estimate amount or lower amount without the bridge benefit.]
C) LTD cuts me off completely from LTD but I owe nothing else to them.
D) I asked my lawyer how these options affect a lawsuit (for the accident that caused the ‘reason for forced early medical retirement’) and My lawyer will not answer this and says they cannot help me… but I need a financial advisor but financial advisor says they need to know how my LTD works to calculate anything with a transfer value lump sum or commuted value.
- I’m worried that if LTD cuts me off before 65 if I improve in any capacity (do to definition of ANY job) and I will only have a pension that I cannot live off of and I cannot work…
- I might not even get approved by Health Canada for medical retirement then transfer value money is stuck in a pension till 65.
It seems like no one in the public service has even been disabled on LTD and taken a transfer value AND everyone says do not do that but have no idea why?
If I cannot live on LTD now and owe so much for Phoenix overpayments and resulting debt for non-payment etc. taking money now to solve all that makes sense to me. Heck all this stress of not enough money and insurance companies might kill me way before 65.
I just want to know of anyone can confirm treatment of taking the LTD or point me in the right direction please as I have been asking questions over and over getting nowhere.
Thanks in advance.