If you are receiving LTD tax free and you do an elected pension split with your spouse which raises your net income . Does this have to be reported to the insurance as income?
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It depends on how the policy is worded.
My says they deduct:
for the same or a subsequent disability under any government- sponsored plan, excluding dependent benefits, employment insurance benefits and automatic cost-of-living increases under any government-sponsored plan that occur after benefits begin.
under a retirement or pension plan funded in whole or in part by the employer, as a result of your disability or a medical condition.
I don’t know what a pension split is but if looks like you retiring then the insurance company might end your payments.
I would ask a lawyer.
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I agree with Jammer. It will depend on the wording of your LTD policy. It will list what types of income must be disclosed. Pension income, even from pension splitting is still income and may have to be disclosed. When in doubt disclose it to the insurer and they will tell you how it will be treated. You can then appeal that if you disagree. If you don’t tell them, it can case big problems if they later find out and require you to do a large repayment of LTD benefits.
You may not need to reverse it if it’s not clawed back.
It might be better to reverse it then you’ll know for next year.
Good luck.
Oh heck I didn’t even think of that