When Do Your LTD Benefits Terminate?
Coverage under the NSAHO Long-Term Disability Benefit Plan will end on the earliest of six different circumstances:
- The date the Employee hits the Age Limit
- Termination of Employee’s permanent employment status
- Employee is no longer Actively At Work
- End of the LTD Plan
Of the circumstances above, the most frequently encounter debated about coverage concern whether the employee is actively at work, or whether the employee’s permanent employment status has actually ended.
Termination is not always forever. So long as you have not died, retired, or hit the age limit, coverage can be reinstated.
Reinstatement: After termination of employment
Coverage will be reactivated if the terminated employee obtains a new permanent position with the Employer within 12 months. If so, there is no waiting period for coverage so long as certain employment working hour requirements are met.
For workers hired with the employer after a 12 month gap in employment, a new waiting period kicks in before coverage is provided to the Employee.
Reinstatement: After Lay-Off
Sometimes an Employee will be laid off due to various circumstances, often completely beyond the Employee’s control. If the cause of termination is solely due to lay-off, the worker is eligible for reinstatement of coverage when he/she requires to being Actively at Work with the Employer so long as the lay-off period was less than two years, and the new employment is another permanent position.
Continuation of Coverage
There are various circumstances where coverage will be continued even if the Employee is not disabled or not Activity At Work.
The Plan sets out a maximum period of 24 months coverage for any Leave of Absence, be it a single leave of consecutive leaves.
In order to take a leave, an application must be filed to elect for coverage to be continued. The notice is mabe by writing to the Employer and is to be done with 31 days of the leave start date.
Employees who are on Paid Leave or Sick Leave will have their LTD coverage continued during the Leave of Absence whether or not the Employees has made the application to the Employer.
In every case, contributions to the LTD Plan are needed should coverage be continued. Employees are responsible for payment of the full contributions of both the Employee and Employer during the course of any Leave of Absence when he or she is not the recipient of pay or sick leave benefits from the Employer.
Are you covered for Long-Term Disabiltiy Benefits?
Jeff Mitchell is an experienced Long Term Disability Benefits Lawyer who has successfully advanced his client’s interests before the Nova Scotia Public Service Trust Fund. To book your free consultation, call toll-free: 1-855-670-1345 or 902-702-3452. Prefer to email? Email Jeff at [email protected].