Disability Insurance Plan FAQ’S

What are my Disability Benefits?

As a Public Service employee, you are protected against loss of income due to disability under one of two plans:

• If you are a member of the The Public Service Management Insurance Plan (PSMIP) you will have Long-Term Disability (LTD) insurance. If you are in doubt about whether you are a member of the PSMIP, consult your Compensation Advisor.
• All other employees are eligible for coverage under the Disability Insurance (DI) Plan.

Refer to the heading A or B below for more detailed information on the Plan which applies to you. 

A. Employees Covered For Long-term Disability (LTD) Insurance Under The Public Service Management Insurance Plan (PSMIP)

What is the Long-Term Disability (LTD) component of PSMIP?

The LTD component of the Public Service Management Insurance Plan (PSMIP) provides income protection for Public Service employees who are in managerial or confidential positions and for others who are members of certain designated groups. It provides a monthly income benefit for employees who are unable to work for long periods because of a totally disabling illness or injury.

The complete terms and conditions of the LTD component of the Public Service Management Insurance Plan are set out in the contract of insurance between the PSMIP Board of Trustees and the Industrial Alliance Insurance and Financial Services Inc Company of Canada.

General information on the major benefit provisions of the LTD Plan is found in one of two employee booklets:

If you are a member of the Executive group, you should refer to the booklet The Public Service Management Insurance Plan - Executive Booklet. Other Plan members should refer to The Public Service Management Insurance Plan - Main Plan Booklet. Plan members who do not have access to the Internet, should contact their departmental compensation advisor.

• What benefits will I receive under DI or LTD if I become disabled?
• How do I know if I am covered for disability benefits?
• How much do I pay for disability benefits coverage?
• Am I still covered under the DI Plan or the LTD Plan if I go on Leave Without Pay?
• How do I find out if I am eligible to receive DI or LTD benefits?
• What happens to my disability benefits coverage when I retire or otherwise leave the Public Service?
• Am I covered for disability benefits if I am posted outside of Canada by my employer?

What benefits will I receive under DI or LTD if I become disabled?

If you become disabled, and your claim is approved by the insurer, your monthly benefits will equal 70% of your insured annual salary. Benefits under DI or LTD begin once you have used up all your sick leave and provided that you have met a minimum waiting period of 13 weeks. Benefits continue for as long as you meet the test of total disability under the plan. If you are permanently disabled, your DI or LTD benefits will continue until you reach age 65.

Your benefits under the DI and LTD Plans are harmonized with other sources of disability income you may have. Your DI or LTD benefits will be offset by other income that you receive because you are disabled. Examples of other income are:

• a pension under the Public Service Pension Plan (Treatment of Public Service Superannuation Benefits);
• a disability pension under the Canada Pension Plan or the Quebec Pension Plan;
• benefits paid for injuries which occurred at the workplace: for example, in compliance with the Government Employees’ Compensation Act; and
• disability benefits under another group insurance plan.

Be sure to consult the appropriate plan member booklet for further information on how the offset provisions apply.

• Employees covered under the DI plan should consult the booklet Disability Insurance Plan.
• Employees covered under LTD should refer to the Public Service Management Insurance Plan – Main booklet.
• Members of the Executive Group should refer to the booklet the Public Service Management Insurance Plan – Executive booklet.

Your net DI or LTD benefits are increased annually to reflect increases in the cost of living to an annual maximum of 3%.

How do I know if I am covered for disability benefits?

Generally speaking, disability coverage is automatic and compulsory if you have been appointed for more than 6 months and you are a all full-time employee or a part time employee who works more than 1/3 of the normal work week. If you are in doubt about your coverage see your compensation advisor.

How much do I pay for disability benefits coverage?

Unless you are a member of the Executive Group, you pay a monthly premium for your disability benefits coverage. Your premium represents 15% of the cost of your coverage because the Employer pays the other 85%.

The current premium rate for DI is $1.93 for every $1000 of your insured salary. Employees pay 15% of this amount.

The current premium rate for LTD is $1.40 for every $1000 of your insured salary. Employees pay 15% of this amount.

The Employer pays 100% of the costs of coverage for members of the Executive Group.

Am I still covered under DI or LTD if I go on Leave Without Pay?

Your coverage continues without interruption during any period when you are on authorized leave.

If you are on leave without pay, the required contributions for DI plan and LTD will be deducted from your salary when you return to duty after your leave.

Depending upon the type of leave you take, you may be required to pay the employer's share of premiums for that portion of your leave beyond 3 months. Your Compensation Advisor can explain.

If you are a member of the Executive Group, your employer-paid LTD coverage continues during a period of leave without pay.

You should consult your compensation advisor about this and other benefits before proceeding on leave.

How do I find out if I am eligible to receive DI or LTD benefits?

If you think you might qualify for disability benefits, you should consult your compensation advisor immediately. Your compensation advisor will provide you with information and with the forms which you and your doctor must complete.

What happens to my disability benefits coverage when I retire or otherwise leave the Public Service?

Your disability benefits coverage ends on the day your employment terminates. If, however, you become totally disabled before you retire or resign from the Public Service, your disability benefits will continue to be paid for as long as you remain totally disabled and have not reached your 65th birthday. Disability benefits cease when you reach age 65.

Am I covered for disability benefits if I am posted outside of Canada by my employer?

Yes.

B. Employees Covered Under The Disability Insurance (DI) Plan

What is my Disability Insurance (DI) Plan?

The DI Plan provides for a monthly income benefit if you are unable to work for long periods because of a totally disabling illness or injury.

The complete terms and conditions of the Plan are set out in a contract of insurance between the Treasury Board and the Sun Life Assurance Company of Canada, the Insurer.

General information on the major benefit provisions of the plan can be found in the plan member booklet Disability Insurance Plan on the Treasury Board of Canada Secretariat Web Site.

Plan members who do not have access to the Internet, should contact their departmental compensation advisor for information.