I am on LTD and on CPPD. There is a clause in my LTD policy that the insurer can deduct the children’s portion of the CPPD as well. I have a very good LTD policy. It’s non taxable so I earn the same on LTD/CPPD as I would as if I was working. I also get a cost of living increase every year on my LTD to a maximum of 3 percent per year based on the inflation rate. My question is the LTD case manager told me before I went on ‘maintenance’ as now I haven’t had to deal with anyone that once the children are 18 the LTD insurer won’t deduct the children portion any more which it states in the policy as well but since I am getting a cost of living increase will I get to keep all of it once they stop deducted the children portion of CPPD as my initial LTD will have increased by the Inflation rate over the years. I am hoping someone with kids on CPPD can shed some light as to what happens when the insurer non longer deducts CPPD children portion and you have received the annual inflation increase.
Please double check by reading the master policy yourself that they can deduct the child’s portion of your cppd.
I know of 2 people who were told by their insurer that the child portion of the CPP-D was deducted from their LTD, but it turns out the claims manager was wrong. The claims managers (different companies) didn’t know how a comma or basic grammar works and read the clause completely wrong. Both people were given back many months off child cpp-d deductions once this was pointed out to a supervisor.
Also your 3% yearly increase amount should be based on gross LTD before any deductions.
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