Ltd and company pension


#1

My policy states that if I get ongoing approval for LTD, it will end at age 65 or continue until I die if I have worked 10 consecutive years prior to being off on disability which is my case. If that is the case, can the insurance company force you to take your company pension at age 65?


#2

It doesn’t sound like it.
My LTD ends at 65 or when I retire.
I think CPP-D converts to regular CPP at 65 and that is a “retirement” pension I think so if your LTD ends when you retire, I’d be worried about being cut off at 65.
I don’t think they can force you to take your company pension early but I think taking it at 65 is typical but you do have a clause saying you get LTD after 65 so I can’t guess.
Best to ask a lawyer.


#3

Thanks for your response. I am aware that the CPP-D does convert to the retirement CPP at age 65 and LTD is already clawed back because I get the income now for CPP-D but if LTD continues to support me after 65 due to the above mentioned clause in our contract - I will get no benefit from continuing with LTD upon taking my company pension (and do they continue to get my then reduced CPP) My company pension alone will be more than LTD therefore LTD will be paying out nothing - so I am asking about whether they can force me to take my company pension because if LTD still approves me beyond 65 the only benefit I would get is to not take my company pension for awhile so I would then get more money. I also have to factor in my health which is guarded at the moment. I can’t imagine LTD would not want me to take my pension at 65 I just don’t know if they can legally force me too. Right now I am still waiting to hear if they will approve me for ongoing LTD after the two year mark. So this is just looking into the future. The way my disease is going it will be a miracle if I go into remission but who knows.


#4

They can’t force you to take your pension before 65 but I don’t know about at 65 or later.
Hopefully someone else will comment.
I’ve never read of a policy going after 65, very good.


#5

Some disability policies have clauses that say the coverage will end when the covered person can access an unreduced pension. Some polices will have wording saying you have to apply for a pension with certain milestones, like when you are eligible for an unreduced pension, or reach a certain age, etc. It is very unusual for a policy to cover you for life. I have never actually heard of such an LTD policy, and I anticipate it must have a life insurance component to do something like this.


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-282-5188 to speak with a member with our disability claim support team.


#6

Hi David
I just wrote my HR person and she said the life time benefit is a feature of our plan. She also stated that no one can force me to take my company pension, however, at age 71 I would have to take it. She said that Manulife is aware of my years of service and could confirm this with me. We will see what happens currently. I also let her know that I am not ready to retire and still hope my disease will go into remission.


#7

Hi Rupert,
You mentioned that you are on CPP-D and made mention of a reduced CPP when you turn 65. While you are on CPP-D your regular CPP is not being reduced, for example if you receive CPP-D at 60, your CPP will continue to grow about 36% from 60-65. The CPP-D, as you know, will turn into regular CPP at 65.


#8

Thanks Marilyn for your response. I was not sure of the percentage so thank you but when I was referring to a reduced pension at 65 what I mean’t was that it would be a lot less than what I am receiving for my CPP-D. I am aware that because I am on CPP-D, it is like I am working and continue to contribute to my retirement pension. When I called CPP they actually said that I might even get a little more on my retirement pension at 65 because I have been on CPP-D.


#9

Call me cynical, but I NEVER believe the HR people :wink: What you are describing is so far outside of the norm that I am very skeptical about the information they are giving you. I described your situation anonymously with an insurance company lawyer at a meeting the other day and she could also not conceive of such an LTD Plan.

If you want me to take a look at your Plan document or Policy for your to verify, I am happy to waive my usual fee because I would hate to see you get bad advice here and I am very curious to see if a plan as you describe does in fact exist. It would be like seeing a rare bird in the wild!


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-282-5188 to speak with a member with our disability claim support team.


#10

Hi David
Thanks for wavng your fee and yes I will do that. I am also curious, my deadline for the 2 year mark is the 19th and I have not received a phone call or letter yet which has surprised me. Maybe I will tomorrow or the end of this week. Maybe I should call them.


#11

Hi David
I have mailed the policy info to you today and you should receive it in 2-4 days. There is some conflicting info because initially it says LTD continues until 65 but if you read under the heading Cessation of benefits - pg. 44, it states that if you have worked for 10 consecutive years, your benefit will continue for a life time. Now as mentioned, at age 71, we have to take our company pension.
Someone also said to me that they will still cover me even if I take my pension but that makes no sense either because I would make at least as much as I am getting now if not more depending on when I take my pension and they would just cancel each other out. Obviously for me I would like to have more delay in taking my company pension but can only do that if LTD continues. I also have to factor my health in all of this. Just want to make the best decision for myself because I am single and fully dependent on LTD or my pension. So thank you David. Looking forward to your feedback