Long Term Disability (LTD)

Long Term Disability (LTD)

What is Long-Term Disability?

Long-Term Disability (LTD) provides income for Members who cannot work, even with an accommodation, due to illness or disability. LTD is administered by an insurance company on contract with UVic. Benefits are 80% of your salary after tax withholdings at whatever FTE status you had prior to requiring LTD coverage. This formula is applied regardless of your financial circumstances.

See Collective Agreement Section 51.14 – 51-20 What is Long-Term Disability?

 

Am I eligible for LTD?

To qualify for LTD, you must have been unable to work for the six months prior to the requested start of LTD coverage. In this case, you are expected to apply for LTD at least three months before the end of your Sick Leave.

LTD is not available for Members who have passed their normal retirement age.Am I eligible for LTD?

 

Why isn’t there LTD past normal retirement age?

LTD is intended to provide a source of income for Members who cannot work due to illness or disability. Members past retirement age have an alternative source of income and therefore do not pay into LTD. Why isn’t there LTD past normal retirement age?

 

Is there partial LTD?

No. To qualify for LTD, you must be considered completely unable to work. Why isn’t there LTD past normal retirement age?

 

I was on Study Leave when I got sick. Are my LTD benefits calculated as 80% of my regular salary after tax withholdings or my post-tax Study Leave salary?

LTD will be calculated as 80% of your regular salary after tax withholdings as you are still at your regular FTE while on Study Leave. I was on Study Leave when I got sick. Are my LTD benefits calculated as 80% of my regular salary after tax withholdings or my post-tax Study Leave salary?

 

I used to work at FTE 1.0, but recently I have been working at a reduced FTE. Are my LTD benefits calculated as 80% of my FTE 1.0 salary or as 80% of my reduced FTE?

Your LTD benefits will normally be calculated as a percentage of your FTE status when you went on Sick Leave. Members should consider this risk when deciding whether to reduce their FTE status for any reason. I used to work at FTE 1.0, but recently I have been working at a reduced FTE. Are my LTD benefits calculated as 80% of my FTE 1.0 salary or as 80% of my reduced FTE?

 

Do I pay taxes on LTD benefits?

No. LTD benefits are not taxed as they are calculated based on your salary after tax withholdings. If you regularly have enough tax deductions each year to get a large refund, you may want to petition Revenue Canada to authorize smaller withholdings.Do I pay taxes on LTD benefits?

 

What do I need to pay for when I am on LTD?

You will need to pay your MSP premiums directly. However, you qualify for MSP’s Regular Premium Assistance while on LTD. You will have to apply for this on an annual basis.

Parking discounts, bus passes and other employee discounts are not normally available when you are on LTD. What do I need to pay for when I am on LTD?

 

How long can I stay on LTD?

With medical documentation, you can stay on LTD until the June 30 following your 65th birthday. LTD is not available past this date because you are eligible for retirement.

You will not be charged LTD premiums past the June 30 following your 65th birthday. How long can I stay on LTD?

 

What happens to my job when I am on LTD?

Your job (or an equivalent) must remain available to you if you are able to return to work from LTD, regardless of how long you are on LTD, unless holding the job creates undue hardship for the University (not the unit).What happens to my job when I am on LTD?

 

How does time on Long Term Disability affect windows for reappointment or tenure?

Time on LTD does not count towards the calculation of reappointment or tenure.

See Collective Agreement Section 48.5 How does time on Long Term Disability affect windows for reappointment or tenure?

 

My time on LTD has affected my productivity. What happens when I am evaluated?

Every Faculty Evaluation Policy must have a provision for taking into account the effects that Sick Leave or LTD may have on performance and your performance evaluation. Some Faculty Evaluation Policies lack specific details about what this means. A Faculty Association Membership Services Advisor can assist you in explaining the impacts of your leave.

See Collective Agreement Section 19.5.7 My time on LTD has affected my productivity. What happens when I am evaluated?

 

If the LTD insurer accepts my application, what should I expect?

The insurance company will assign a case manager to your case. They will periodically ask for medical documentation. The insurer may request that you see a specialist. The insurer will also assign a rehabilitation specialist to you, who may visit you in order to report back to the insurance company on your circumstances. If at any point you disagree with the actions or recommendations of the insurer, you should contact a Faculty Association Membership Services Advisor immediately.If the LTD insurer accepts my application, what should I expect?

 

The insurance company wants me to do tests that they administer. What should I do?

Normally the insurer accepts reports from your doctors. If the insurer requests testing that they administer or insists you see a specialist they have chosen, contact a Faculty Association Membership Services Advisor.The insurance company wants me to do tests that they administer. What should I do?

 

I am on tenure-track but do not have tenure. How does LTD affect my tenure track status?

Your reappointment and tenure clock stops while you are on LTD or a graduated return to work from LTD.I am on tenure-track but do not have tenure. How does LTD affect my tenure track status?

 

How does time on LTD affect salary?

Your salary is frozen while you are on LTD. However, you may have cost of living increases applied to the LTD benefits you are receiving. After you have returned to work (and completed any graduated return to work period), your salary will be adjusted according to the Procedures of the Vice-President Academic and Provost Regarding Salary Adjustments after Long-Term Disability. How does time on LTD affect salary?

 

How will time on LTD affect my study leave?

Unlike time on Sick Leave, time on LTD does not count towards Study Leave eligibility. How will time on LTD affect my study leave?

 

I am a Faculty Member. How does time on LTD affect evaluation windows for Merit Increments?

If you have been on Sick Leave or LTD for more than one teaching term during the evaluation period, the evaluation period for the purposes of evaluating teaching and other contributions is extended back by one year. This does not apply to evaluating research.

Faculty Evaluation Policies must have provisions for taking into account the effects of Sick Leave and LTD. If these provisions are lacking or are vague or ambiguous, a Faculty Association Membership Services Advisor should be contacted.

See Collective Agreement Sections 19.29.3 & 19.5.7 I am a Faculty Member. How does time on LTD affect evaluation windows for Merit Increments?

 

I am a Librarian. How does time on LTD affect my evaluation window for Career Progress Increments and Merit Increments?

If you have been on Sick Leave or LTD for more than four months during the evaluation period, the evaluation period is extended back by one year.

See Collective Agreement Section 19.29.4 I am a Librarian. How does time on LTD affect my evaluation window for Career Progress Increments and Merit Increments?

 

Can I work while I am on LTD?

If you do any work for pay, you immediately jeopardize your LTD benefits. You should be cautious about doing any work, even work without pay, as well as minor activities such as writing letters of recommendation for students. Any work-related activities you perform may be viewed by the insurer as an indication that you are no longer fully disabled and could affect their decision to continue benefits regardless as to your actual ability to return to work.Can I work while I am on LTD?

 

Can I return to work from LTD if I will need an accommodation?

Yes. You do not need to be able to work without an accommodation to return to work from LTD if your medical documentation indicates an accommodation can adequately support you. A Faculty Association Membership Services Advisor can assist you in the process of establishing a return to work plan, including any accommodations.Can I return to work from LTD if I will need an accommodation?

 

My doctor authorized me to start back to work from LTD. Can the University keep me from returning?

If you have medical authorization, you have the right to return to work. The insurer or the University may request additional documentation. If so, you should contact a Faculty Association Membership Services Advisor immediately.My doctor authorized me to start back to work from LTD. Can the University keep me from returning?

 

If I am on LTD, do I qualify for the Disability Tax Credit on my Income Taxes?

Being accepted by the insurance company for LTD does not necessarily mean you will qualify for the Federal or Provincial Disability Tax Credit. However, depending on your circumstances, you may want to apply for it.My doctor authorized me to start back to work from LTD. Can the University keep me from returning?

 

My doctor charges for providing the documentation required for starting or ending LTD. Who pays these fees?

The University should cover fees for obtaining medical documentation in relation to Long-Term Disability. If your doctor will not bill the University directly, you can submit a receipt to Human Resources along with the medical documentation. Alternatively, you can ask a Faculty Association Membership Services Advisor to assist. My doctor authorized me to start back to work from LTD. Can the University keep me from returning?

 

Should I apply for CPP Disability Benefits?

On occasion, Members on LTD may have conditions that qualify for the CPP Disability Benefit. If so, applying for this benefit is in your interest and will not jeopardize your position with the University.Should I apply for CPP Disability Benefits?

 

What happens if the insurer does not approve my application for LTD?

See Collective Agreement Section 51.18What happens if the insurer does not approve my application for LTD?

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