LTD Benefit Reductions

Members need to apply for any other disability benefits that they are entitled to. This is because Long Term Disability benefit payment amounts are typically reduced by other benefit amounts that are due.

PEBT members who receive Long Term Disability (LTD) benefits should be aware that their benefit amounts will be reduced by the following:

Benefit they receive for the same disability under any Workers’ Compensation Act
Benefit they receive from the Canada Pension Plan (CPP) including early retirement benefits. It does not include:
- Benefits payable to the member’s dependents.
- Any increase in benefits due only to cost-of-living adjustments after the benefit payments begin.
Subject to the provisions of the Insurance (Vehicle) Act [RSBC] c. 231, any benefit they receive for the same disability under any government plan requiring or providing automobile insurance benefits on a no-fault basis.
Benefits they receive from any other disability income plan, including employer-paid sick leave and disability pension income. This does not include benefits from the “Other” LTD programs, any private disability insurance plan, or any unrelated disability.
Subject to the provisions of the Insurance (Vehicle) Act [RSBC] c. 231 and regulations thereunder
any Net Proceeds of Third Party Claim for the same Disability.

All disabled members must apply for CPP disability benefits. For all disabled members:

After 8 months of continued disability, the member’s LTD benefit will be reduced by an amount equal to the CPP payment the member is entitled to, unless the member submits proof that they have filed an application for CPP disability benefits with Service Canada.
After 16 months of continued disability, the member’s LTD benefit will be reduced by an amount equal to the CPP payment the member is entitled to, unless the member submits proof that a CPP application is still pending or has been denied. If the CPP application is denied, the member must provide proof that they have filed an appeal.