If you worked in the United States and paid into Social Security, you may be eligible for Social Security Disability Insurance (SSDI) in addition to your Toronto long-term disability (LTD) benefits. However, many long-term care insurance carriers include off-set clauses in their policies.
Because of this off-set clause, you may need to report your Social Security Disability benefits to your LTD insurance carrier. They may also reduce your benefits dollar-for-dollar based on your Social Security Disability benefits. This means it may be impossible to increase your income by qualifying for both programs. This is also true of Canadian Pension Plan Disability benefits.
Some Canadians May Qualify for Social Security Benefits from the United States
According to the Social Security Administration, there is an agreement between the United States and Canada that allows Canadian residents who work in the United States to pay into Social Security and qualify for disability and retirement benefits through the U.S. Social Security programs.
Under the agreement, this is true if you work for an employer or affiliate in the United States for five years or more. You may be exempt from having to pay U.S. Social Security taxes in the United States unless you work across the border for five years or more, but you may also not be eligible for the benefits offered through the United States.
There Are Some Exceptions to the Agreement
Occupations that require you to go into the United States and back in short trips do not trigger the five-year clause. You will continue to pay Canadian taxes and pay into the Canada Pension Plan if you live in Ontario. This may also be true for self-employed Canadians who live in Toronto but need to go into the United States for work.
Canadians Working in Ontario May Experience a Similar Effect if They Qualify for CPPD Benefits
Social Security Disability Insurance is, in many ways, the United States’ equivalent of Canada Pension Plan Disability (CPPD) benefits. They are available to workers who paid in taxes to the plan, but now those workers have a qualifying medical condition that hinders their ability to work and earn a living.
Like the Canada Pension Plan (CPP), Social Security in the United States is a compulsory fund you must contribute to. You may qualify for income once you reach retirement age or if you can no longer work because of a long-term or permanent injury or illness.
There are also similarities because of how they work with long-term disability benefits. While drawing LTD benefits may not affect CCPD or SSDI, getting payment from either of these government programs may significantly impact your long-term disability insurance benefits. The off-set clause in your policy may be as high as dollar-for-dollar.
Understanding LTD Policies and Benefits May Seem Complex
Long-term disability benefits may seem complicated, especially when it comes to their interaction with other types of benefits programs. If your long-term disability benefits claim is denied or you receive another notification about your benefits being stopped, you can choose to reach out to Preszler Injury Lawyers for legal assistance. We may be able to analyze your policy and get to the bottom of the problem.
We may be able to help you understand your policy, any off-set clauses that may affect the amount of your benefits, and other factors affecting your benefits.
You may have one or more options for fighting an unwarranted denial, decrease, or stoppage of your long-term disability benefits. However, you may need to act quickly because you only have two years from the date on your notice to file suit under the Limitations Act of 2002.
Talk to a Member of the Preszler Injury Lawyers Team About Your Benefits
If your long-term disability insurance payment is lower than you expected, it may be affected by Social Security Disability or CPPD benefits. Alternatively, there may be another reason why the amount of your benefits decreased, or you received notification that it will stop. At Preszler Injury Lawyers, we may be able to help you understand what happened and, in some cases, may be able to challenge a wrongful denial.
At Preszler Injury Lawyers, our team serves workers who live in Toronto and other areas nearby. We may be able to help even if you worked a significant portion of your career in the United States but carry a long-term disability plan and reside in Ontario.
If your medical condition prevents you from travelling to meet us, we may be able to come to you at your home or another location.
Call Preszler Injury Lawyers today at 1-800-JUSTICE to learn more.