Definition of Disability
The Sun Life Assurance Company of Canada determines the status of each disability. Because each disability varies, please contact the Benefit Plans Office for additional details.
Elimination Period = the 90 continuous days after the disability starts. The elimination period is a waiting period during which no benefit is paid. On the 91st day of disability, a worker may be eligible to receive benefits.
Amount of Benefit = 66.67% of the worker’s Covered Monthly Earnings.
Covered Monthly Earnings = A worker’s Covered Monthly Earnings is the sum of the following items, if applicable:
- Base salary
- Housing allowance, or value of provided housing deemed as a percentage of base salary
- Utilities allowance
- SECA tax allowance
- Deductions for pre-tax contributions made to a qualified deferred compensation plan, Section 125 plan, health savings account or flexible spending account
Maximum Benefit = $10,000/month
Minimum Benefit = 15% of the monthly benefit or $100, whichever is greater.
Maximum Benefit Duration
The maximum duration of LTD benefits generally approximates the Normal Retirement Age for Social Security retirement benefits.
Reductions in Benefit
The benefit amount for a disabled worker may be reduced by the following benefits*:
- Social Security
- Retirement benefits received from an employer-sponsored retirement program
- Workers’ Compensation
- Occupational Disease
- Other group LTD plans maintained by the worker’s sponsoring organization
*Note that other sources of income may also reduce the benefit payable from the LTD plan.
Please note: There will be no reduction in benefits for benefit amounts that are received from an additional individual LTD plan. A worker may collect a benefit from both an individual LTD plan and the WELS VEBA LTD plan.
Disabled workers who return to work on a part-time basis may be paid a partial disability benefit based on their loss of earnings (20% minimum loss of earnings required). During the first 24 months of partial disability, the worker may receive up to 100% of pre-disability earnings from the LTD coverage and from his/her part-time earnings. After 24 months of partial disability benefits, the benefit amount will be recalculated by Sun Life to offset a portion of the disability earnings received from part-time employment.