Does any one experienced, impact of severance pay on LTD payment. I got severance pay due to frustration of the contract. Its one way decision by the employer. Kindly suggest if possible to any one
I’m on LTD. In my case I can receive severance pay from my employer and it would have no impact on my LTD payments (i.e. there would be no offsets). My understanding is that this is not true for all LTD plans.
You should look at your employee booklet for LTD offsets (e.g. usually CPPD).
I would ask the insurance company AND check your benefits booklet.
Step 2: We subtract any benefits or payments provided under:
any government-sponsored plan such as the Canada Pension Plan and the Québec
Pension Plan, excluding any benefits or payments on behalf of a dependent, for the
same or a subsequent disability.
any Workers’ Compensation Act or similar law for the same or a subsequent
a motor vehicle insurance plan.
a group plan, including any coverage you have because you are a member of an
association but excluding any benefits or payments provided under a Critical Illness
a retirement or pension plan funded in whole or in part by your employer, due to your
disability or a medical condition.
the Québec Parental Insurance Plan.
This is what my insurance policy says, Thanks
This is basically what my booklet says as well.
Hopefully, this means your severance will not be deducted.