Amendment to Rehabilitation Provision of Disability Insurance Plan

DATE: July 24, 2006

TO: All Public Service Employees

SUBJECT: Amendment to Rehabilitation Provision of Disability Insurance Plan

The purpose of this notice is to provide you with information on an amendment to the Rehabilitation Provision of the Disability Insurance (DI) Plan effective January 1, 2006 regarding offsetting from monthly disability benefit earnings.  The amendment applies to all DI claimants on an approved Rehabilitation Program on or after January 1, 2006.

Background - Sun Life DI Rehabilitation Program

Currently, under the Rehabilitation Provision of the DI Plan, employees participating in an approved Rehabilitation Program receive a monthly DI benefit in addition to other income (e.g. part-time salary, CPP) up to a maximum defined as 100% of the pre-disability salary for their occupation or position on the date they began receiving DI benefits.  This means that a person on an approved Rehabilitation Program who was earning a salary of $45,000 when their DI benefits began would continue to have a ceiling of $45,000 even if the salary for their pre-disability position increased during the period of the Rehabilitation Program.

Amendment to the Rehabilitation Provision of the DI Plan

Effective January 1, 2006, there was a change to the maximum income level that an employee on an approved Rehabilitation Program may earn. An employee may now earn their DI benefit plus any other income ((e.g. part-time salary, CPP) up to a maximum defined as 100% of the current annual rate of remuneration for the pre-disability occupation or position.

Implementation Process:

Departments have been notified of this change and will be reporting salary revisions since January 1, 2006 to Sun Life for DI claimants on an approved Rehabilitation Program on or after that date.  

There is no need to contact your Compensation Advisor to initiate a review of your file. If you were on an approved Rehabilitation Program on or after January 1, 2006, your Compensation Advisor will review your file automatically to determine if the salary for your pre-disability position has increased since you began receiving DI benefits.  Your Compensation Advisor will notify Sun Life directly regarding updated salary data. 

Based on updated salary data, your DI benefit may be adjusted, depending on the level of your other income.  You will be advised by Sun Life if your benefits are adjusted.

If you were on an approved rehabilitation program prior to January 1, 2006 and you feel you were adversely affected by the former rehabilitation provision, you may contact the Treasury Board Secretariat for a review of your file.  For additional details you may contact the Treasury Board Secretariat at:

E-mail:  lrco-rtor@tbs-sct.gc.ca
Fax :  (613) 952-9421
Phone :  1-866-892-2295

Mailing Address :
Labour Relations Compensation Operations
Treasury Board of Canada Secretariat
400 Cooper Street
Ottawa, Ontario  K1A 0R5
Attention:  DI Rehabilitation Provision

The Treasury Board Secretariat will accept such requests for a period of one year from the date of this notice. 

Phil Charko

Assistant Secretary
Pensions and Benefits Sector