Reduction of LTD

Disability Insurance
1

My last day worked was in August 2021 but my ltd didn’t ask me to apply for CPP until the fall of 2023. CPP received my application November 2023.

The first call I ever got was April 2024 advising I met the earnings criteria and 2 days later the medical adjudicator called and said I met the disability criteria so i was approved for CPP.

The wording of my ltd policy states that cost of living increases "after my benefits begin " are not included in the reduction of my ltd benefits.

Would this mean (A) any cost of living increases from the back date of approval ( Nov 2022) or (B) any cost of living increases after the payments begin ( they say by July 2024) ?

If it is (A), should I be receiving the portion of the CPP retro payment back from my ltd that is for any increases since November 2022?)

2

Hi, I have similar ambiguous wording in my policy. The common law is very clear that ambiguous contract wording always goes in the favor of the person who DID NOT write the contract.

So the way I read and understand it as “my benefits” is actually “my LTD benefits”. For example if your LTD started in August of 2021, and at that time the most you could be approved for CPP-D for was say $1000/month, then $1000/month is the most they can ever subtract from your LTD payment.

That’s my 2 cents. I might be hashing this it with my LTD provider soon, but I already told them my position on this months ago, and they haven’t disagreed with me.

1 Like
3

Thank you for your thoughts on this. If you think of it, I eould love to hear the outcome.

I hope it works out for you.

4

Yep, only the original amount of CPP-D is deducted from LTD every year.
I don’t find the wording ambiguous but it is not very straightforward.

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5

As others have said, it would be to ORIGINAL CPP amount approved back in 2022. You will get a “payment explanation statement” from Service Canada that will break down the CPP retroactive payment by year and amount. You need to look back and see the earliest monthly CPP payment amount and that is the one you use.

David Brannen

Disability Lawyer with Resolute Legal

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