Valid Offsets to Your Disability Benefits Payments

As you saw in our previous post regarding benefits calculation, the disability benefit formula is 70% of your pre-disability monthly pay.

There is, however, a long list of income sources which the Disability Benefits Plan is able to offset against your monthly payment. An offset has the effect of reducing your monthly payment by the full amount of the other source of income.

List of valid offsets includes:

  • Worker’s Compensation benefits resulting from the disability
  • any Canada Pension Plan disability benefit (including disability payments or retirement pension)
  • any income payable through a pension or retirement plan through a NSAHO member organization if the benefit was payable on or after the date of Total Disability
  • any income payable by the Employer, or any plan or program by or through the Employer
  • Any income from a group disability pension plan for the same or subsequent disability
  • any other salary, wage or other benefit payment by the Employer, including vacation pay
  • any income payable through no-fault accident benefits (i.e. wage indemnity from auto insurer)
  • any compensation received for loss of earning from a third party, either by settlement or judge award.

No reductions can be made for disability payment made under the Employment Insurance Act.

Use of Sick Days

Workers with accrued sick days are permitted to “top up” their benefits without the extra income being treated as an offset.

Wages Earned While Collecting Disability Benefits

If the worker is participating in employment as part of a rehabilitation plan, 50% of the earned wages will be reduced as an offset from the monthly benefit. If the work wages from the rehabilitative employment exceed 100% of the benefit payable, any excess over the full benefit amount will be offset.

Any wages earned from employment undertaken outside of a formal rehabilitative program will be offset against the disability benefit payable.

Questions about your Disability Benefit Payment?

We welcome you to ask us any questioned about your disability benefit, especially if you may be making a claim under the Plan. Be sure to contact us for a free case consultation with an experienced Long-Term Disability Book your appointment with Jeff Mitchell. Call toll-free: 1-855-670-1345 or 902-702-3452. Prefer to email?