Termination after 2 yrs on LTD


#1

I am coming up to 2 years on LTD and have been approved for LTD change of definition from "own“ to “any” occupation. My company will be handing me an administrative termination soon. Will/can the LTD carrier insist on me applying for my work pension.


#2

This depends on the wording of your disability policy and any collective agreement. For example, some Federal Government employees and employees in the Newfoundland and Labrador public service have no choice but to apply for a “disability Pension” through their pension plan after two years.


David Brannen

Disability Lawyer with Resolute Legal

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#3

My question is not around my disability pension, as that presumably will continue for a while, because they have now approved me for the change of definition. Could they insist I start drawing on my work pension after my employer terminates my employment? I’m of the age where I could start collecting but with a penalty , to off set their payments to me much like they do with my CPPD payments.


#4

Yes, in two possibility situations: 1) the group policy will say benefits end when you are eligible to collect a full unreduced work retirement pension. Sometimes that can happen before age 65. 2) What I was discussing above is that some work-retirement pensions also have a disability component (separate for your LTD insurance benefits) that you can be required to apply for.