Yes, based on the terms and conditions agreed upon by your employer and the insurance provider, you may be asked to apply for the Canadian Pension Plan (CPP) before applying for long-term disability (LTD) benefits through your employer’s insurance provider.
In many cases, this type of condition is standard. Insurance companies and employers may request employees to do this for a number of reasons, but it is mostly to lessen the financial burden on the insurance company. While you may not technically receive your full income from both the LTD and CPP, the two payments may run concurrently; however, you do not get to keep both. The LTD insurer will receive credit for the CPP benefit and reduce the amount they owe you by the amount you receive from CPP. The only party that benefits is the LTD insurer. Also, the total value you may receive will be the same regardless if you only received LTD or received LTD with the CPP.
For example, if awarded $650 in CPP benefits and your LTD insurance provides coverage of $2,000 in benefits, you may only receive a combined total of $2,000 in benefits. What happens in most cases is the LTD insurance provider deducts $650 from the $2,000 it would have paid you. Thus, the LTD insurance provider provides $1,350 in benefits, and the CPP still pays you the $650 in benefits for a total of $2,000.
In these cases, you may simply receive two forms of payment instead of the lump sum coming in one cheque from one source. These forms of disability benefits are in place to ensure workers may make ends meet. If you have been denied LTD payments for any reason, a personal injury lawyer may be able to help you gather the documents necessary to prove the extent of your injuries or ailments and your need for assistance.
How LTD and CPP Disability Works
The main difference between LTD and CPP forms of disability benefits is that CPP is a federal program while your LTD policy governs your entitlement. To receive either form of disability payment, you may need to have paid into the program to an extent or paid for the policy. In the case of LTD, your employer may cover your premiums, or you may already be eligible since you may make payments out of each cheque. For CPP, each paycheque you receive, amounts are deducted by your employer for CPP. Regardless, both systems are in place to help eligible workers stay afloat when disaster strikes.
Both programs are a support system to help when a dedicated worker has to stop working due to illness, injuries, or medical conditions. Generally, to be approved for either type of disability plan, you need to have medical proof. If you require assistance obtaining the necessary documentation for your application for disability benefits, you may need to switch medical professionals or consider hiring an injury lawyer.
According to the Canadian government, other qualifying factors for CPP payments include having to have worked at least four out of the last six years. They may continue to pay until you are either 65 years old or your injuries heal enough for you to go back to work.
Applying for both processes may help ensure that at least one pays out. Companies who provide LTD insurance may require that you apply for CPP or other forms of insurance so they are not held responsible for so much money. If you refuse to apply for the other programs, your payments may be reduced or suspended. If you feel unjustly denied, your LTD benefits after an injury or illness, contacting an injury lawyer may help give you peace of mind. They may be able to take a look at your case and see how they may help prove your disability to the proper authorities and get you the compensation you are qualified to receive.
A Long-Term Disability Lawyer May Be Able to Help
Finding yourself unable to work may be one of the most difficult times of your life. LTD and CPP programs are put into place to help people just like you. The team of disability lawyers at Preszler Injury Lawyers are here to help. We have helped countless clients over the years get back on their feet after being injured and finding themselves unable to work.
Together, we may be able to protect your right to your qualifying compensation so you may move forward with your life. The last thing you need to worry about is making ends meet while you recover. Our team of lawyers may be able to help you gather the important medical documents and doctor’s testimony you need to help prove your case. To find out more about our services, call today at (416) 364-2000 for your free initial consultation.