Automatically enrolled if on a full year fixed, probationary, or permanent contract.
There is no cost sharing and if a member wants to sign out they can but they will have to show proof of insurability to get back into the plan. A teacher on a fixed term contract can sign out of the plan and if they get a new contract they will be automatically enrolled again.
While the member is on LTD the employer will treat it as an unpaid sick leave. Once their sick leave ends and their unpaid sick leave begins they will get paid out of their deferred balance or they will be required to pay any deficit.
There will be no pension payments at the time but through the pension plan the member may be eligible to purchase the time back by contacting the pension office each year of their leave.
The LTD plan pays 60% of income to a maximum of $8,000 a month and is tax free. The plan is integrated with CPP and the pension plan and may be required to apply for one or both programs by the insurance provider. If a member on LTD qualifies for disability pension or disability CPP the amounts may be subtracted from their benefit.
In the first year of the leave there is no payment over the summer but the member will get their 60% of annual salary based on 1/10th per month rather than the regular 1/12th. After the first summer payments will switch to 1/12th but they may be eligible to get payment over the summer depending on how long they are required to be on LTD.
For the first two years of LTD the member must be deemed by Sun Life (the insurance provider) to be unable to work in their own occupation. After the two year period in order to meet eligibility the member must be deemed by Sun Life to be unable to work in any occupation.
There is some ability in special circumstances for partial disability to work part time and get some benefit based on their formula. Please contact Johnson Insurance for those scenario’s.
The insurance provider (Sun Life) has the forms and applications that will be required to fill out. The member can contact Johnson Insurance to get the forms and information on filling them out. If the claim is denied by Sun Life the member can appeal the decision.
The plan ends at age 60. If a teacher has enough sick leave to get them to expected retirement or age 60 they should strongly consider signing out of the plan.
There is a 120 calendar day elimination period which means the member has to be off work for 120 calendar days or use all of their sick leave (whichever is greater) before they can begin LTD. For greater clarity, a member has to use all of their sick leave before they can start LTD. If they don’t have enough sick days to get through the elimination period they will have to either borrow sick days, go on Employment Insurance, or be on unpaid sick leave. They should still apply once they are aware they won’t be returning to work for at least that amount of time.
Many teachers on LTD have been successful on claiming EI while on LTD since it is an insurance payment and not considered income. They should apply through Service Canada.
Any questions on the LTD process should be directed to Johnson Insurance.