I was laid off from my job in October. I am on Manulife LTD. I received a final paycheck from my employer and Manulife is using the gross amount to calculate the offset. They want a partial repayment for October, all of my LTD benefit for November and half of December. Because they are using the gross amount instead of net I am losing $2000 from my ltd payments over those 3 months. How is this possible? They are taking my entire final paycheck plus $2000 from my regular ltd payments because of using gross vs net. What am I supposed to do?
Before someone asks, yes, it is stated in my policy that they can take everything, including severance and vacation pay. I just didn’t think they would use the gross amount for the calculations.
I tried googling answers but I don’t think I am wording it correctly or else no one else has ever had to deal with this which I find unlikely. I am going to write back to Manulife about this but I don’t even know what to say or how to word it so it sounds intelligent. This is honestly the worst thing that could happen before Christmas.
Any one else have had this happen with Manulife? What did you do? Please help!
Hi. This is what manulife does. I had a severance pay and it was taxed. I put it in A RRSP. Because I didn’t realize manulife would take it. So, when company closed you were to bridge over to your own policy. I didn’t do it right away, then when I did, . Then I get letter in the mail that they wanted my sevarance and they said I recieved another payment of something over $7000. Which I didn’t and told them they better look into it more because I didn’t recive the $7000.00 They got back to me and said ok it was wrong info that I owed my severance and it was before tax. I said that is so not fare I was taxed and you want more then I got. They said that’s the way they do it. If I didn’t sent the payment they would cut me off. So, I went to bank, they taxed me on takeing it out of RRSP and I had to borrow the difference to pay them off. Meanwhile, I was so sick I had to get it done. Then I had to claim this money as income at the end of year. So, I took my papers to tax place and showed them what I had to pay out to Manulife. They didnt do much, just a higher tax bracket. Sorry, so yes they make you pay before taxes. Its like you work all your life and they brutally beat you down, no compassion. They take , take ,take.I would like a group of us to go against them and get a new law wrote. We didn’t intend to be disabled , they take away the qualities of life. They make you suffer mentally, emotionally, and you get worst from that. I am so sorry they are taking your funds before Christmas, they make me so angry. They will be deducting my CDB from mine probably February, I didn’t know we had to claim it on manulife. So please take care and maybe somehow we can make a difference.
Thank you so much for replying. I was starting to go crazy thinking I was the only one experiencing this. I feel so awful and powerless. I hate them.
Can I ask if your LTD benefit is non-taxable or not? I wonder if it makes a difference?
Plus it just keeps getting worse. I was finally approved for CPPD dating back to the last 2 years so I will be screwed again for tax time. It just never ends. I keep getting kicked in the face by these jerks.
Long term through Manulife is non taxable. You don’t claim at tax time. Also, they do not send you anything to claim for taxes. Once they think you will get any money, they will start harassing people. They are bullies. I also don’t know with the new disability tax credit of $200. If they can take it. I was told it’s not really clear if Manulife can. But again, depending how Manulife words things. I am quite sure they will take it. So the government might as well just pay Manulife instead of the people who need it.
I hope this helps abit.
I was thinking of applying for the disability tax credit but if Manulife can just take it all then I won’t bother. I’m not going to line their pockets with even more of my money.
I am not sure how that works. If the DTC is to reduce taxes through the years, it would be of no monetary value to Manulife and besides how the heck do they think they can take something they didn’t work for years ago. I am not sure how it works though. I know for myself, I am not going to claim it.
Sorry couldn’t help much.
It already has 500 signatures, so the government must acknowledge the petition. For it get any actual MP attention it would need closer to 5000 signatures.
Even with 15,000 signatures that could force a MP committee to be formed…..the ask of this petition is extremely “weak” and won’t help most people on LTD. Even if subsection 76.1(1) were to be repealed, Insurance Companies will still have the right to offset CPP payments as this clause is written into MOST private/group LTD plans and 76.1(1) being repealled won’t prevent overpayment calculations and offset on LTD contracts. Repealing 76.1(1) will only prevent funds going from the government directly to the Insurer (which the disabled already have the power to do), and won’t prevent overpayment calculation demands directly from the insurer to the disabled for reimbursement or deduction.
For this pettition to have any teeth it needed to be written quite differently. I’m guessing the original authors of the petition didn’t consult a lawyer prior to its submission.