Two years mark on LTD

Im currently on LTD and will soon reach two years mark, does that mean insurance company will try to get me back to any occupation instead of my previous job? so I will get fired from my my previous job and put me on other lower pay job in the community? Im so afraid that I will lose my previous govt job as its much higher pay

Any occupation doesn’t necessarily mean “any” occupation.
It depends on your education and qualifications.
It may also depend on your current salary, I don’t know.
Have you looked into CPP Disability?

FYI: They wouldn’t put you on a lower paying job, just cut off your LTD and say you can find another job.

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When they cut off my LTD, which means Im forced to find another low paying job as I don’t have any more income to support my living… :frowning: My CPP was being rejected as they said my illness is able to be treated and improve , sigh

I wasn’t saying they would.
Does your doctor think you do a return-to-work?
If yes, your employer has a duty to accommodate you (barring undue hardship which has to be proven in court).
Has the insurance company said they are cutting you off?

Not yet saying I’m ready to return to work but just afraid so

I don’t know if all insurance companies do or if there is a legal time frame for advance notice but maybe you get letter saying you’re approved or not for >2 years.
Try not to worry.
Hopefully if they intend to cut you off, you get enough notice to get support from your doctor that you can’t return to work yet.
I don’t know how to be proactive about the 2 year change in definition, maybe one of the articles David @David_Brannen wrote says.
You could get the free consult from Resolute Legal.

In answer to your questions, the lead up to the 2 year change of definition (COD) of disability is handled in various ways. Some insurers will be in touch with you as far out as a year leading up to the COD and will have you being seen by different consultants or doctors. The other extreme is you will hear nothing until the last minute.

All insurers will reassess a LTD claim at the COD, but it is not an automatic time for denial of a LTD claim. This really depends on the situation, but certainly this is a high risk time for a denial to happen.

Depending on the level of government you work for, it is possible your employer may seek to terminate your employment or put you on a medical retirement status. They may go this way if you are unable to return to work in any capacity and your disability cannot be accommodated to allow you to work in other roles. Again, this depends very much on your specific situation and employer, so you need to get specific legal advice based on specific information coming from your employer. It is not good to speculate too much on this.

Please note much will turn on your LTD policy’s specific definition of total disability after the COD. In many cases (but not all), there is the concept of an income threshold that may result in you being totally disabled from any occupation, unless you can earn above a certain income. This type of income threshold situation would allow you (in theory) to continue to get LTD payments to “top up” employment income. BUT, this is not the situation for all LTD policies, so you need to seek specific advice based on the wording of “totally disabled” in your policy. With some policies there is no income threshold and you would be disqualified from LTD payments if you can earn any level of income. This is an area of dispute now on how far insurers can go to remove the concept of an income threshold.


David Brannen

Disability Lawyer with Resolute Legal

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Do some policies specify an actual number and if the policy doesn’t specify a number then it doesn’t have an income threshold?

Always?
Even if they have already approved LTD for after the COD?

Here’s one with a 2/3rds income threshold.
http://psacunion.ca/book/1415

My understanding is that if the policy is silent then the 2/3rds threshold is often used as a rule of thumb but every circumstance is different.

Does anyone know if bonuses are included in the income when applying the threshold rule if the contract is not specific?

It’s complicated to give a straight answer. Some give a percentage of income (60% of pre-disability income) and some are silent. Of the ones that are silent, some can be still have a threshold and some won’t, base on the wording in other sections of the Policy.

I guess nothing is 100%, but in my experience many people think they have been approved to age sixty-five, but the insurance doesn always see it that way. Even if they say you are approved to or after the COD, they can (and do) still review the claim from time to time. I believe it would be very rare for an insurance company not to review the claim as it approaches the COD – usually if they don’t its because of a breakdown of their internal systems or was overlooked by someone. Reviews get triggered all the time as new claim managers and team leaders come and go.

Just got a insurance letter stated that I could continue to receive LTD benefit after visiting the IME , however they are asking me to apply for CPC pension disability ( https://www.cpcpension.com/db/db_mem_disability-e.asp ) and CPP disability , but I’m only at the 40+ years old , are they trying to put me on early retirement? My company policy only allow me to be on sick leave till 2021 , will I get terminated? If my condition improve later on, am I able to get back to my workplace after collecting their “pension benefit “ ? I applied CPP DISABILITY two years ago but got disapproved, can I reapply again ? Thx all

Are you sure your LTD doesn’tof of last until age 65?

It seems they are asking you to take a disability pension. They would want you to do this because the amount the insurer has to pay would be reduced by the amount of the disability pension (same with CPP).

Right now you are accruing service in the pension plan (each year of service increases your final pension amount). If you take a disability pension you will stop accruing service in the plan.

Maybe your LTD does only cover you for a certain number of years and not to age 65. I would make sure that is accurate.

Sounds like it.
I don’t know about Canada Post but it looks like it is an unreduced pension.

If you don’t apply for the CPC pension disability?

No idea but my guess is it’s doubtful.

What reasons did the denial letter give?
I have no idea if you can apply again.

I would get the free consult: Free Consultation Request — Resolute Legal