Continuation of Coverage During Work Stoppage

Employees covered by the CSI-Canada Insurance Plan and discontinuing work can continue insurance coverage.  Such continuations of coverage are not automatic but must be applied for. To apply for continued coverage, notify our office as early as possible prior to work being discontinued (60 days if possible). A Work Stoppage Form is available by logging on http://www.CSIonline.org/benefits  and selecting Canada Insurance, Forms, Work Stoppage Form - for a leave of absence. This form is required for those going on maternity leave, other leaves of absence, sabbaticals, and for those whose employment is terminated and the school board is negotiating a severance package which includes continuation of insurance.
Each Work Stoppage Form will be judged on an individual basis and approval is not certain. Be careful when negotiating severance packages not to promise continued insurance coverage unless prior approval is obtained.
During any leave of absence (except with a severance package or maternity/parental leave), before they will agree to continue coverage, Manulife Financial requires a definite commitment to return to work and that provincial medical coverage be continued.
For an unpaid leave of absence the qualifying period for disability commences at the date of disability. The benefit payments commence from the later of the completion of the qualifying period or the original expected return to work date.
Here are some general guidelines:
    DISABILITY LEAVES - These are the only work stoppages which do not require that a Work Stoppage Form be completed and continued coverage be applied for. Coverage can automatically continue as long as an employee is receiving Short or Long Term Disability Benefits.
    MATERNITY LEAVES - The standard maternity leave is for 17 weeks, and may be less at the option of the employee. During a maternity leave, all plan benefit coverage and contributions may be continued for the period of leave to which the employee is entitled by legislation governing the school. Provincial guidelines are available at http://www.CSIonline.org/benefits  by selecting Canada Insurance, Publications. If coverage is continued and a disability occurs during a leave of absence, benefits will begin at the later of the end of the qualifying period or the scheduled return to work date.
An employee on maternity leave is considered an employee throughout the maternity leave unless she specifically resigns prior to the end of the leave. If the employee notifies the employer in advance that she will not be returning to work after her maternity leave ends, her resignation date will be considered the date her maternity leave ends, unless an earlier resignation date is provided by the employee.
Any employee who is medically disabled due to pregnancy can apply for Short Term Disability and the school can complete the Work Stoppage Form for the maternity leave. If, however, an employee leaves a school prior to the birth of a child and she is still medically able to work, she must apply to continue coverage as explained above.
    PARENTAL LEAVES - During a parental leave, all plan benefit coverage and contributions may be continued for the period of leave to which the employee is entitled by legislation governing the school. Provincial guidelines are available at http://www.CSIonline.org/benefits by selecting Canada Insurance, Publications. If coverage is continued and a disability occurs during a leave of absence, benefits will begin at the later of the end of the qualifying period or the scheduled return to work date.
Parental leaves may be taken at the discretion of the employee, within the following parameters. If a birth mother wishes to take a parental leave, it must begin at the conclusion of the maternity leave. The maximum duration is 35 consecutive weeks, at the discretion of the birth mother.  If a biological father wishes to take a parental leave, it must begin within 52 weeks of the birth of the child. The maximum duration is 37 consecutive weeks.
Both adoptive parents are entitled to parental leaves. If an adoptive parent wishes to take a parental leave, it must begin within 17 weeks of the child being placed in the parent’s home. The maximum duration is 37 consecutive weeks.
Parental leaves are unpaid.  Parental leaves must be for consecutive uninterrupted periods.
An employee on parental leave is considered an employee throughout the parental leave unless the employee specifically resigns prior to the end of the leave. If the employee notifies the employer in advance that the employee will not be returning to work after the parental leave ends, the resignation date will be considered the date the parental leave ends, unless an earlier resignation date is provided by the employee.
    OTHER LEAVES OF ABSENCE - During any paid or unpaid leave of absence all salary-related benefits (Basic Life, AD&D, STD and LTD) as well as health and dental may be continued until the school terminates coverage, but in no event for more than 365 days after the employee was last actively at work. Additionally there must be a definite commitment to return to work. If a person is going out of Canada during their leave, Manulife Financial will continue emergency medical and dental benefits only for 60 days. Coverage beyond 60 days is available with prior approval. Notify the CSI office as early as possible to apply for the Extended Out-Of-Province coverage.
    TERMINATED EMPLOYEES - In negotiating a severance arrangement you will be guided by statutory requirements in your province and common-law practice. The latter may well suggest granting a longer notice period than the minimum statutory requirement.
The Plan will extend all benefits to a terminated employee during the required statutory notice period.  Specific notification of employees for whom benefits are being extended during this period is not required. Premiums should continue to be paid on behalf of such employees.
If you wish to extend any benefits beyond the required statutory notice period, advance approval must be obtained from Manulife Financial, who will only agree on a case by case basis. As a guideline, Manulife Financial has indicated that it is normally agreeable to extending life, health and dental benefits for up to one year, but that it is very reluctant to extend Long Term Disability coverage beyond the statutory notice period. If Long Term Disability coverage is extended, the Plan’s Short Term Disability coverage will be automatically extended for the same time period.
As the group life insurance benefit has a conversion privilege, this option is available should Manulife Financial not agree to the requested life insurance extension. However, the individual life insurance premium would be significantly higher than the group life insurance premium.
The Short Term and Long Term Disability Benefits do not have conversion privileges and obtaining individual replacement coverage can be difficult.
In negotiating a severance arrangement with a terminated employee we suggest that you:

Full Issue: No. 333 - May 12, 2010

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