Lump sum payback


#1

hi. I was cut off by Ltd at 2 year change of definition mark. I applied and was approved for cppd. Do I still have to give Ltd my lump sum payment from cpp?


#2

Probably if the lump sum is payments for the period you received ltd.
If you’re not going to appeal to get ltd reinstated then I would be tempted to let the insurance company sue you for it. :slight_smile:
You should ask a lawyer.


#3

Thanks Jammer. I wondered about doing that.


#4

I personally would keep the money. The Insurer breached the contract when they wrongfully cut you off–you owe them nothing


#5

Hi Mags

Perhaps you should be asking a different question if you haven’t already asked it…

I don’t know anything about your LTD contract, your age or how long ago you were advised that your LTD was cut off. I hope you were cut off less than 12 months ago as the timelines to act are very short! Your CPP disability back payment could be a very small amount when compared to the value of future LTD payments your LTD insurer may owe to you. Many group LTD plans become “any occupation” plans after 2 years of disability and will pay up to age 65 as long as the person continues to meet the criteria. I understand that many claimants are cut off at 2 years and need to pursue their claims against the insurer.

The CPP Disability plan has different criteria from your LTD plan, however, I understand it isn’t easy to get approved for CPP disability. In order to be approved for CPP Disability, you must have a severe and prolonged disability that prevents you from working at any job at a “gainful income” ($1,134 x 12 = $13,604 in 2018). I assume that since you had LTD coverage when you were able to work, you had a good job with a healthy income far in excess of the CPP disability “gainful” amount.

You might want to consider getting some legal advice quickly on pursuing your terminated LTD claim.


#6

Thanks Ally. I’m not going to hand it back without a fight


#7

Hi Joanne. I did appeal their decision through my union but was recently denied.


#8

I would talk to your union rep because I doubt that is all you can do.
There is a good chance your union rep doesn’t know WT* to do next. I don’t know what to do but I would ask a lawyer.


#9

Hi Mags & Jammer, Some union plans are not really “insurance” and quite complicated. At this point I would very strongly recommend that a person in this situation seek independent legal advice and NOT consult the union since the union may be the one, in some situations, adjudicating the “welfare plan.” Very complicated and case specific, but much to lose if you don’t get it right!


#10

Hi Mags, I will echo the other advice you are getting here. If you are in a union, then you will need to get legal advice on your options and next steps. Sometimes (but not always) there can be limits to your legal rights imposed by your union’s collective agreement with the employer.

Get advice sooner rather than later as there are deadlines that you don’t want to miss. Don’t trust the insurance company or union to know and give you proper advice on the deadlines.

As far as the CPP back payment, the insurance company will likely sue for this, if you are not suing them first. Better for you to be the first to sue (if you can) as it will cause less procedures hassles for you.

You should fee free to reach out to our office or another disability law firm for advice.


David Brannen

Disability Lawyer with Resolute Legal

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