# Severance pay and LTD payments

**URL:** <https://forum.resolutelegal.ca/t/severance-pay-and-ltd-payments/3079>\
**Category:** Disability Insurance\
**Created:** [November 5, 2020, 1:14am UTC](https://forum.resolutelegal.ca/t/severance-pay-and-ltd-payments/3079 "2020-11-05T01:14:31Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![nanukr](https://avatars.discourse-cdn.com/v4/letter/n/71c47a/32.png) [@nanukr](https://forum.resolutelegal.ca/u/nanukr)\
**Post date:** [November 5, 2020, 1:14am UTC](https://forum.resolutelegal.ca/t/severance-pay-and-ltd-payments/3079/1 "2020-11-05T01:14:31Z")

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Hi,all.  
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

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**Author:** ![RaptorsFan](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@RaptorsFan](https://forum.resolutelegal.ca/u/RaptorsFan)\
**Post date:** [November 5, 2020, 1:30pm UTC](https://forum.resolutelegal.ca/t/severance-pay-and-ltd-payments/3079/2 "2020-11-05T13:30:52Z")

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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).

Good luck.

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**Author:** ![jammer](https://avatars.discourse-cdn.com/v4/letter/j/df705f/32.png) [@jammer](https://forum.resolutelegal.ca/u/jammer)\
**Post date:** [November 6, 2020, 4:21am UTC](https://forum.resolutelegal.ca/t/severance-pay-and-ltd-payments/3079/3 "2020-11-06T04:21:10Z")

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I would ask the insurance company AND check your benefits booklet. 🙂

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**Author:** ![nanukr](https://avatars.discourse-cdn.com/v4/letter/n/71c47a/32.png) [@nanukr](https://forum.resolutelegal.ca/u/nanukr)\
**Post date:** [November 6, 2020, 3:05pm UTC](https://forum.resolutelegal.ca/t/severance-pay-and-ltd-payments/3079/4 "2020-11-06T15:05:40Z")

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```
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  
disability.  
 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  
plan.  
 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

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<div class="post-metadata">

**Author:** ![RaptorsFan](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@RaptorsFan](https://forum.resolutelegal.ca/u/RaptorsFan)\
**Post date:** [November 10, 2020, 8:22pm UTC](https://forum.resolutelegal.ca/t/severance-pay-and-ltd-payments/3079/5 "2020-11-10T20:22:28Z")

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This is basically what my booklet says as well.  
Hopefully, this means your severance will not be deducted.