Group Long Term Disability Insurance

Coverage and Eligibility

If you become totally disabled and unable to work for an extended period of time because of illness or injury, the long term disability (LTD) plan may help replace your earnings until you are able to return to work.

The firm chooses one of the following schedules for all full-time staff:

1) If benefit is taxable (premiums are fully or partially paid by the employer), 75% of the first $11,668 of monthly earnings and 60% thereafter to a maximum benefit of $10,000 per month.

2) If benefit is non-taxable (premiums are fully paid by the employee), 60% of the first $11,668 of monthly earnings and 50% thereafter to a maximum benefit of $10,000 per month.

Long Term Disability
Partners/Proprietors CPAs Rates Per Units of $100

Waiting Period 30 days 90 days
Age at Apr 1 Male Female Male Female
<30 0.81 1.37 0.43 0.77
30-39 1.02 1.58 0.56 0.89
40-44 1.53 2.09 0.95 1.28
45-49 1.90 2.81 1.53 1.87
50-54 3.32 3.62 2.47 2.65
55-64 3.72 3.72 2.81 2.81
65-68 4.17 4.17 3.23 3.23
69 Coverage Terminates

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Long Term Disability
Employee/CPAs - 113 Days Waiting Period Rates Per Units of $100

Waiting Period CPAs Employees
Age at Apr 1 Male Female Male Female
<30 0.39 0.68 0.43 0.77
30-39 0.51 0.81 0.56 0.89
40-44 0.85 1.14 0.96 1.29
45-49 1.45 1.76 1.57 1.92
50-54 2.30 2.47 2.55 2.72
55-64 2.65 2.65 3.40 3.40
65-68 3.07 3.07 3.95 3.95
69 Coverage Terminates

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Long Term Disability
Employee/CPAs - 180 Days Waiting Period Rates Per Units of $100

Waiting Period CPAs Employees
Age at Apr 1 Male Female Male Female
<30 0.34 0.60 0.39 0.68
30-39 0.43 0.68 0.46 0.77
40-44 0.77 1.02 0.87 1.17
45-49 1.37 1.62 1.48 1.79
50-54 2.22 2.38 2.47 2.65
55-64 2.47 2.47 3.23 3.23
65-68 2.89 2.89 3.75 3.75
69 Coverage Terminates

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Benefit Payments

Benefits are payable following total disability for the period selected:

1) 30 or 90 day waiting period for partners and proprietors who are CPAs and not eligible for employment insurance benefits. A partner who is not a CPA may be extended the same coverage; please contact CPAIPW.

2) 113 or 180 day waiting period for employees.

LTD benefits are payable until the earliest of recovery, age 65, or death. For disability occurring after age 62, but prior to age 69, benefits are payable for the earlier of 24 months or age 69. If you die while receiving benefits, a 3 month lump sum payment will be made to your eligible survivor.

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Benefit Offset

If your total monthly earnings from all sources during disability exceed 100% of your monthly earnings prior to total disability or 100% of gross income before tax monthly earnings if benefits are taxable. The benefit will be reduced by the amount of such excess.

Total monthly income from all sources will include:

→   any monthly income payable under the benefit;
→   any monthly earnings or payments from the employer or partnership (excluding return of capital and/or sale of ownership interest);
→   any disability benefits payable under the Canada/ Quebec Pension Plan excluding benefits for dependents or any cost of living increase;
→   any disability benefits payable under any Worker’s Compensation Act or similar legislation, or any other government plan;
→   any disability benefits payable under any other association, group, or franchise insurance plans;
→   any income payable from a group retirement or pension plan; or
→   damages for loss of income recovered from a third party arising out of the same circumstance that caused your disability.

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Definition of Disability

“Total disability” or “totally disabled” means that during the elimination period and during the remainder of the period for which benefits are payable, as a result of injury or sickness occurring while insured under the plan:

1) For partners, proprietors and CPAs, the inability to perform essential duties of your normal occupation, to age 69.

2) For employees, the inability to perform the normal duties of your occupation during the first 24 months of total disability and thereafter, the complete inability to engage in any gainful occupation for which you are reasonably qualified by training, education or experience.

You will not be considered totally disabled during any period in which you are engaged in any other gainful occupation, or are not under the regular care of a licensed physician, surgeon or psychiatrist.

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Partial Disability

You will be considered partially disabled if, due to sickness or injury, you are only able to perform some of the normal duties of your regular occupation or are engaged in and receiving earned income from any other gainful occupation, providing:

If you are a non CPA, you must be totally disabled throughout your waiting period; thereafter, your earnings must be reduced at least 20%.

If you are a partner, proprietor, or CPA, your earnings are reduced at least 20% from their pre-disability level as a result of the disability.

Benefits for partial disability will equal the full insured benefit reduced by the ratio of earnings received while disabled to earnings prior to disability, adjusted to reflect changes in the Consumer Price Index. Partial disability is available for the first 24 months of disability or attainment of age 69 if earlier.

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Cost of Living Adjustment

Each April 1st, if you have been receiving LTD benefits, the monthly benefit will be adjusted for inflation using the Consumer Price Index, subject to a maximum increase of 2.5% per annum. If the adjustment is less than 2.5% per annum, the difference will be carried forward to add to the allowable percentage adjustment in subsequent years.

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Recurrent Disability

If total disability from the same or related cause recurs within six months of your returning to full time work, benefit payments will resume without the usual waiting period.

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Limitations and Exclusions

A claimant must be under the care of a qualified physician and receiving appropriate treatment. Disabilities resulting from the following are not covered:

→   Alcohol or drug abuse unless actively taking part in a therapeutic program supervised on an ongoing basis by a physician
→   Active participation in a criminal offense, insurrection, or war, or imprisonment due to conviction of a criminal offense
→   Driving a motorized vehicle while impaired by drugs, or with an alcohol level that exceeds the limit set under the Criminal Code of Canada
→   Cosmetic surgery or treatment, unless required as a result of an accident while insured

Claims must be submitted within 90 days of the end of your qualifying period.

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Pre-Existing Conditions

This provision only applies to amounts over NEM.

Benefits will not be payable for disabilities directly or indirectly due to or resulting from an injury, disease, illness, pregnancy or mental disorder for which you visited or consulted a physician, took tests or received treatment within 90 days prior to the date on which you became insured under the CPAIPW plan. This exclusion will not apply to a disability commencing more than 12 months after you become insured.

Your long-term disability insurance will terminate at age 69, on the date you retire, or leave your employer.

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Waiver of Premiums

Premiums will be waived retroactively after 6 months of total disability.

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