STD ending - RTW or LTD?

Disability Insurance
1

Hi there,
I’ve been on Short term disability for just over 5 months and it’s ending in about 3.5 weeks. While I’ve had improvements since going on medication, my health is still not fully stabilized. I never realized what a long road recovering from burnout could be. I am regularly having panic attacks when doing anything remotely stressful or difficult and my brain is still very tired and confused after 30-45 mins of concentrated focus work. At this point in time I don’t think I am able to do my job, even at reduced hours.

My company did a reorganization a few months ago while I was on leave and it’s highly likely that I will be laid off - I can’t be 100% sure, but it’s likely. I would not be heart broken, as my company has quite generous severances (I’ve been there for 20 years).

My GP however doesn’t want me to go on LTD at all, I think she’s afraid I will be on it for for years and not improve. She definitely has a bias. She has suggested that I start a gradual RTW with no LTD support to top up my pay! She said I could ask the company about using some of my banked vacation to supplement. She also said that if the RTW doesn’t go well she would later support an LTD leave if necessary, but she wants me to try now. I just don’t get this - if she doesn’t think I’m ready to go back full-time then does that fit the definition of disabled? My Dr. thinks my workplace is toxic for me and is hopeful they will just lay me off… that way I can get them out of my life. While I agree on some levels, my mental health and brain function resulting from severe burnout are not fully dependent on working at THIS company.

My STD case manager and psychologist both think I should apply for LTD.

My questions:

  • how long does it typically take Sunlife to review an LTD claim?
  • is it more difficult to get LTD after you’ve already attempted RTW or better to apply now while on STD?
  • has anyone had success using banked vacation time to offset the gap in hours? (I mean I don’t feel like I should have to, but if she won’t support my LTD then it would be my only option to supplement pay).
    I don’t believe my company would lay me off until after I am back without accommodation (they are pretty risk averse)
  • after LTD is severance generally based on that lower 66.7% or on full salary?
  • do you think they would consider using vacation as an accommodation or if they were going to lay me off would they maybe go ahead?

Sorry for so many questions!

Thank you :slight_smile:

2

Hi,

I’m sorry that you are still struggling. I can’t answer all of your questions but I can help with some of them.

Also one caution - your doctor suggested that the problem is that your workplace is toxic, but LTD insurance doesn’t cover toxic workplaces, only your inability to work anywhere - so make sure that theory doesn’t bleed into the paperwork.

  • how long does it typically take Sunlife to review an LTD claim?

Don’t know

  • is it more difficult to get LTD after you’ve already attempted RTW or better to apply now while on STD?

It’s easier to get LTD after attempting RTW. It shows you tried your best and truly couldn’t work. I tried going back for about five months unsuccessfully. My HR department was able to get the insurer to agree to backdate my LTD claim to the beginning of my attempted return to work.

  • has anyone had success using banked vacation time to offset the gap in hours? (I mean I don’t feel like I should have to, but if she won’t support my LTD then it would be my only option to supplement pay).
    I don’t believe my company would lay me off until after I am back without accommodation (they are pretty risk averse)

Don’t know. You may also be able to restart while you still have STD coverage and get partial pay for that, talk to your HR about it.

  • after LTD is severance generally based on that lower 66.7% or on full salary?

Full salary.

  • do you think they would consider using vacation as an accommodation or if they were going to lay me off would they maybe go ahead?

I think you could definitely talk to them about paying out your vacation pay.

Just an overall point, I would give it a try. Best case scenario easing in might allow you to cope with the return and you might surprise yourself. Worst case scenario you end up back where you started, but with more documentation, support from your doctor and a stronger case that you’re disabled.

Good luck.

3

I don’t know if you get severance while on LTD.
It is still not clear to me.

4

Hi Laracee,

It can take 1-3 months for an insurer process an LTD claim. But can be shorter or longer, if they are waiting on information or if they have all they need.

Generally speaking, it is easier to get LTD after a failed return to work; however, I always recommend getting LTD involved wiht the return to work if you can because then they have to own it.

Employer policy on banked vacation will be what you need to know. Is possible to do it though if employer allows and you have the time.

Severance based on your pre-disability employment income or income at time of termination. Will depend on who employer structures it. If you are on an approved accommodation from employer and return to work program, they would likely use pre-disability income.

My biggest concern with your whole situation is if you get terminated before you apply for LTD. That will complicate things, or if you accept a severance, it can take away your right to apply for LTD.

Keep in mind if you get terminated, and have to find other employment, you won’t be able to be covered under another LTD plan for at least a year or two. So if your disability is ongoing, then you need to make sure you have full protection of LTD under this current plan.

I would encourage you to reach out us for a confidential review of your group benefits booklet so we can see what your plan says regarding return to work and the disability re-occurance period, etc.

David Brannen

Disability Lawyer with Resolute Legal

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