If LTD is based on employment income, what happens if you get a retroactive "raise"?

If I’m on LTD and on leave from work (but still considered an employee), and my workplace puts in place a retroactive salary increase for the past year, how is that paid out? Does the backpay get paid out by the workplace or through and by the insurer? I’m assuming that it would be through the insurer, as they do the calculation for payments based on what my salary would be if I was working. I find it hard to get ahold of HR lately to ask, and have no idea how it works, or if how quickly they would let the insurer know about the retro. Or is it on me to tell the insurer to make sure it’s known? It’s a small amount, but it would be nice to get! Anyone have this happen?

I would think that if the retro pay was in respect to a time where you were an employee that the insurance company wouldn’t deduct the retro pay from the LTD payments.

I believe that is the way bonuses work. If a bonus was paid while on LTD but earned while an active employee then there would be no deductions.

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Not sure if you still need any help…

I think it depends on the employer. I had a retroactive salary increase (owed from before the LTD started) and the employer paid it to me.

Just ensure that you are getting the right LTD amount if the retroactive salary should have been higher.

I’m still asking for input to fix mine as I think my LTD base is wrong but in 2 years asking for help I’ve gotten nowhere. I just get told only I just get indexing. No one seems to understand that my salary should have been higher before the LTD because unions take years to reach agreements.

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Thank you! That would make sense…fingers crossed. :smile:

Your situation sounds close to mine - and yes it sure is like pulling teeth to get anything accomplished should you need a change or correction…oof. Thank you! :slightly_smiling_face:

I asked my case manager and the insurance company will be adjusting and paying retroactively. Just don’t expect it to be very soon.

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