If you require further information regarding Long Term Disability, please contact Melcha Wolanski at the OC ETFO / FEEO Office: 613-596-3932.
What is long term disability (LTD) insurance?
LTD insurance provides a safety net that replaces your salary and provides protection for
your pension plan, should you be unable to work due to illness or injury. The purpose of the
LTD plan is to provide coverage for serious disabilities resulting in long periods of absence.
Your LTD plan recognizes the highly vulnerable position of most members should they be
confronted with a loss of income during a lengthy or permanent disability. Subject to the
terms and provisions of the policy, if you are under the continuous active care and treatment
of a duly qualified physician, a benefit will be paid for as long as you remain disabled and
are eligible for benefits.
Are LTD benefits taxable?
When members pay 100% of the LTD premium, the disability benefit is tax-free. If the
employer pays any part of the LTD premium, the disability benefit is fully taxable.
How are my pension plan credits protected while I’m receiving LTD benefits?
The Ontario Teachers’ Pension Plan (OTPPB) waives pension contributions for disabled
members who start receiving LTD benefits on or after September 1, 2001. As a result, your
pensionable service will continue to accumulate while you receive LTD benefits.
What is a waiting period?
LTD benefits are payable after a continuous period of absence from work. The time
between the onset of disability and the date which LTD benefits first become payable under
your plan choice is the waiting period (often referred to as the Elimination Period). During
the waiting period, you could be paid by any combination of Employment Insurance
Commission disability benefits, Canada Pension Plan disability benefits or sick leave
benefits.
How do I make an LTD insurance claim?
To make a claim you must obtain a member Claim Submission Guide from your employer
or group representative and follow the instructions. From time to time, other forms will be
sent to you for completion. The Claim Submission Form can be downloaded and
printed from this website.
IMPORTANT – PLEASE NOTE WHEN MAKING A CLAIM:
To permit prompt assessment and early participation in a rehabilitation plan or
program, claims must be submitted to OTIP eight weeks before benefits are due to
commence, but in no event shall the time for filing a claim extend beyond six months
after the end of the waiting period or the date the policy terminates. Since the waiting
period must be satisfied before any benefit begins, it is necessary to notify OTIP of
any pending claims. To participate in OTIP’s early intervention program, OTIP must
be informed of any prolonged absence. A prolonged absence is any absence of 15 or
more consecutive working days. OTIP must be notified of a prolonged absence prior
to the 30th day of absence. You should notify your principal and the local affiliate
office if you know that your absence will be prolonged.
The above procedures should be followed even if you have applied for or are in receipt of
workplace safety and insurance board benefits.
When is coverage no longer necessary?
Your LTD insurance coverage terminates on the earliest of the date the member is first
entitled to at least a 62% unreduced service pension from the OTPPB and the end of the
month on attaining age 65, less the length of the waiting period.
The time to advise the plan administrator of discontinuing your coverage is proportionately
related to the length of the waiting period that applies to you. Your plan administrator will
provide you with more details, once you advise that coverage be discontinued.