Termination of Employment and Severance Pay

Hi everyone,

Today I was terminated from my employer after 2 years (and a bit) of being on LTD. I was given a severance payment as well. I’m looking for some advice:

What might I expect now from the insurance company?

Is it likely that this large severance check will go to them?

What should I do with my pension money that I earned from my previous job?

Thank you - just looking for your experiences and advice before I start this new chapter. I am still disabled and unable to return to work. I have tried twice for CPP-Disability but have been denied.

I don’t think so since it is for the time you worked.
Be upfront with the insurance company though.
If they think should get the money then ask to see where in your policy it says they should.
Worst case, talk to a lawyer: Free Consultation Request — Resolute Legal

Invest it?

You need that unless you expect to go back to work.

I don’t know what to do next.
Read CPP Disability Archives - Resolute Legal Disability Lawyers

I think depends. There are policies that would take severance into account. It depends on your policy and how the severance is worded or paid out. Is it straight severance for years service or it is also bonus or pension or stocks. What period is payment covering for, what is monthly severance or is it pump sum. So many factors. I suggest speaking with law firm that does both disability and employment law. I think resolute does both if disability involved but not sure so ask David. It’s better to go to one place or else the left foot wont know what right food does and might get wrong result. Might bot have any issues but if any details need to or can still be sorted out probably worth asking lawyer even if they can give you basic free advice.

Hi, there are too many issues for this thread.

You can touch base with this Fee For Service CFP.

He can review all your documents and charge an hourly fee.

Paul Lambe CFP FMA

Fee for Service Financial Planner, Financial FixR,

Estate Consultant, Author - Personal Finance

Paullambe16@hotmail.com

How to write your own Will!
https://www.amazon.com/dp/0994783620

The Estate Plan Workbook on Amazon
https://www.amazon.com/dp/0994783604

Estate Planner Journal

Severance Payment - there is a possibility that your LTD insurer can offset some or all of this payment. You need to advise them of the payment and see what position they take on deduction. You can also get your own legal advice on this. It will depend on the structure of the severance payment, the time period it covers, and what it says in your LTD insurance policy.

Pension Money from Previous Job - You should seek advice form a certified financial planner on that one.

CPP Disability - if you have been denied twice, consider reaching out to us or another CPP disability representative to see about getting that claim approved. Not being approved for CPP disability will have a negative impact on your eventual CPP Retirement payments.


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-917-7050 to speak with a member with our disability claim support team.

Thanks for your help David. I really appreciate it. I will likely be coming to you guys for some help soon. Take care.

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