Disability Benefit Levels

The current benefit levels of 75% for Short Term Disability (STD) and 66 2/3% for Long Term Disability (LTD) will continue for the taxable plan. Two benefit levels are available for the non-taxable plan. The first level is the base benefit of 66 2/3% for STD and 60% for LTD. This level of benefits takes into consideration the after-tax effect, i.e. a 75% taxable benefit is reasonably similar to a 66 2/3% non-taxable benefit.
The second level is for schools that would like to increase the non-tax base benefit to 75% for STD and 66 2/3% for LTD. This second option is provided by way of a non-tax disability benefit option. See the premium rate sheet for the cost in your province.

Full Issue: No. 334 - May 28, 2010

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