LTD, CPP-D & Medical Retirement Question(s)


#1

Good day all,

I am a PSE with around 9 years of service. I have been on LTD (SunLife) since Sep. 2015. I am just now receiving CPP-D. I know that CPP will send retro payments to SunLife, which is fine. I also know that my SunLife payment is “offset” by my CPP-D.

I was advised by my former RVP that retirement for medical reasons was probably best because I would still have benefits and, if my health improved to the point I could work again within 5 years, I could go back on priority. So I applied.

What I am wondering is will SunLife LTD be stopped if I’m retired due to disability? If not, because my service is so little, how will it impact my payments from CPP & SunLife? I know there is a bridge between the two because I’m under 65 but I can’t seem to find clear answers on that.

By the way, I’m new here and I have browsed through numerous other discussions but didn’t see anything that answered this. If there is already something here, if someone could provide the link to it, that’d be greatly appreciated. In fact, any answers are appreciated

TLDR: I’m getting LTD & CPP and want to know if medical retirement will result in the loss of LTD and how will pension payments affect each.


#2

If you are a public service employee and belong to a union, you should contact your union rep or the union website for more info. I was recently given the option of returning, medical retirement, or resignation. I was able to extend my leave, fortunately, as it is reasonable to foresee that my condition may improve. Depending on your collective agreement, medical retirement should not cause you to lose your LTD payments - after all, if you weren’t disabled, you wouldn’t be medically retiring. :wink: Any retirement pensions you receive from the employer would reduce the amount of your LTD payment, just as CPP reduces it. I don’t believe your CPP should be affected, as you would not be receiving T4 income. I would definitely check with your union about all of this, however. :blush:


#3

I agree, check with your union.
My friend (former federal employee) was surprised he still gets $ from sunlife even though he retired.


#4

Assuming you are talking the Federal Public Service, then “medical retirement” benefits are treated as a direct offset. So, basically, Gross LTD Payment Amount Minus CPPD Minus Medical Pension Amount = New LTD Payment Amount.

If your CPPD and Medical pension amounts together exceed the LTD benefit amount, then your will have an approved LTD claim, but the LTD insurer won’t owe benefits to you. Normally, there is a small amount of LTD still owing once you get the medical retirement and CPP disability.


David Brannen

Disability Lawyer with Resolute Legal

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