Understanding Your Long Term Disability Benefits
Long Term Disability (LTD) benefits offer financial support while you’re off work for a longer-term illness or injury, so you can focus on getting well.
Benefit Details
What is a “Long Term Disability”?
Typically, a disability is defined as an illness or injury that prevents you from working for an extended period of time. You may be eligible for the UA Local 67 Benefits LTD benefit if you cannot work due to an illness or injury that continues even after you’ve reached the maximum Short Term Disability (STD) benefit.
Benefit Amount
The monthly LTD benefit is $2,400 and will be paid to you by Canada Life, our Disability insurer. If your LTD claim is approved for less than a full month, the LTD benefit will be pro-rated at 1/30th for each day that your LTD claim is approved.
LTD benefits are taxable income, as your employer pays the premium.
Impact of Other Income Sources
Your LTD benefits will be directly reduced by payments you receive from other sources for the same or any subsequent disability, such as Canada or Quebec Pension Plan (C/QPP) Disability benefits, or benefits from a provincial automobile insurance plan.
In addition, your LTD benefit will be further reduced if the income you’re receiving from all sources exceeds 85% of your pre-disability gross monthly earnings (the “all-source maximum”).
Important: To ensure your benefits are managed effectively, you should notify your Canada Life Case Manager of other disability benefit payments or any other reportable income you’re receiving. Unreported income or other disability benefit payments may result in an overpayment that you will be required to pay back to Canada Life.
CPP/QPP Disability Benefits
While you’re receiving LTD benefits, Canada Life will ask you to apply for Canada Pension Plan (C/QPP) Disability Benefits. The amount of your CPP/QPP benefit will reduce your LTD benefit.
Canada Life will guide you through the process to apply for CPP/QPP Disability Benefits, and appeal if necessary. If you do not apply, Canada Life will reduce your LTD by the amount they presume you would have received from CPP/QPP.
Expectations During Your LTD Claim
Your responsibilities while in receipt of LTD Benefits are:
- You must be under the regular care of a licensed medical physician or healthcare provider.
- You must participate in discussions with and advise your Canada Life Case Manager of any changes in your condition, treatment or return to work plans.
- You must actively participate in treatment and rehabilitation plans as required by Canada Life. Failure to do so could impact your benefits.
LTD Waiting Period
Your LTD benefit begins when you reach the maximum Short Term Disability (STD) weeks and you’re medically not able to return to work.
This means your benefits begin after the later of:
- 26 weeks of uninterrupted disability,
- The last day benefits are payable under your UA Local 67 Benefits Short Term Disability plan, or
- The last day benefits are payable under any other Short Term Disability loss of income or salary continuation plan.
Once your claim is approved, you will receive your LTD benefit on the last day of the month in which your LTD claim was approved.
LTD Benefits Period
Canada Life determines approval for LTD benefits based on the LTD plan’s “definition of disability”. Here’s what this means and how it changes during the course of your LTD claim.
Own Occupation Period: The first 24 months of LTD
During the first 24 months of your LTD claim, Canada Life will assess if your disease or injury prevents you from performing the essential duties of your regular occupation (usual job functions) at UA Local 67, such as a Plumber, Pipefitter, Steamfitter or Welder.
If you have 35 years of service with UA Local 67, your claim will continue to be based on this “own occupation” definition until age 62 (i.e., it will not change after 24 months).
Any Occupation Period: After 24 months of LTD
After 24 months of LTD benefits, if you are unable to return to your own occupation based on your medical restrictions and limitations, you are expected to consider any reasonable offer of alternative work. Canada Life will therefore only continue to approve your claim if your disability prevents you from being gainfully employed in any job.
Canada Life will assess if you are medically able to perform the duties at a different type of job for which you have at least the minimum qualifications and which provides you with an income of at least 66.67% of your indexed monthly earnings before you became disabled.
Making an LTD Claim
Your Long Term Disability benefit begins when you reach the maximum Short Term Disability (STD) weeks and you’re medically not able to return to work.
You do not need to apply for LTD with Canada Life—they will start reviewing your eligibility for LTD before your STD benefits end. Your only responsibility is to continue to work with your previously assigned STD Case Manager at Canada Life.
Important Things to Know
Maximum Age for Coverage
Eligibility for the LTD plan ends on the date of your 62nd birthday minus the LTD Waiting Period (i.e., about 6 months prior to your 62nd birthday).
While on an approved LTD claim, LTD benefits end on your 62nd birthday.
Pre-Existing Condition Limitation
No benefits will be paid for a disability caused by a condition for which you received medical care before your coverage began. Medical care includes seeing a doctor, taking prescribed medication, or using any medical services or supplies.
This exclusion does not apply if:
(a) your disability begins after you’ve been continuously covered for at least one year, or
(b) you have not received any medical care for that condition for at least 90 days in a row, ending on or after the date your coverage started.
Pre-Existing Condition Limitation
You will earn pension credits for each completed month you receive LTD benefits, up until age 62. The amount of pension credits will be determined by the Board of Trustees based on advice from the pension plan actuary.
Canada Life – Our Disability Partner
Canada Life will help you in transitioning from STD to LTD and will keep you informed of any changes to the status of your claim.
Canada Life is committed to helping you in your recovery, to monitor your progress, and to identify safe return to work opportunities when appropriate. Through Canada Life’s Disability Intervention Services, you may have access to other medical and rehabilitation services to facilitate medical recovery, functional restoration, and help you achieve your return to work goals.
Canada Life provides status updates to UA Local 67 Benefits regarding your restrictions and limitations, and potential return-to-work plans without sharing medical details.
Confidentiality: Your medical information is kept confidential and is not shared with your employer or union.
Have Questions About Long Term Disability?
Contact your Canada Life Case Manager or reach out to the UA Local 67 Benefits team for more information.