Frequently Asked Questions
What does "total disability/totally disabled" mean? It means that you have been released from the CF and that there is clear and objective medical evidence, which confirms that you are incapacitated by a medically determinable physical or mental impairment, which is preventing you from performing any and every duty of any substantially gainful occupation or employment for which you are qualified by education, training or experience.
Who has the governance of the LTD insurance plan? The Treasury Board of Canada (TBC) has the governance of the plan, SISIP Financial Services (SISIP FS) is the administrator, and Manulife Financial is the insurer.
Am I covered if my injury or medical condition is not attributable to military service? In most instances, the LTD plan covers you 24/7* and provides an income replacement benefit regardless of whether you are injured in the line of duty or not.
*Refer to question “How do I know if I have LTD coverage?”
What is my contribution to the LTD?
Treasury Board of Canada (TBC) pays 100% of the premiums for claims involving service-related injuries and illnesses. However, for claims involving non service-related injuries and illnesses, TBC pays 85% of the total premiums while Regular Force personnel pay the remaining 15%; total contribution of the member is 0.171% of monthly salary.
The TBC pays 100% of the premiums for an established deemed basic salary of $2,700 per month for Primary Reserve Class A or B service of less than 180 days. You may submit an application form to SISIP FS to increase your coverage from $2,700 to either $3,700 or $4,700 per month, determined by an income test. Once the increase in coverage is approved, you must pay the additional premiums. For Primary Reserve Class B service of more than 180 days or Reserve Force members on Class C service, the TBC pays 100% of the premiums and you are covered for each period of service.
What are the benefits under the LTD?
(For the purpose of benefit calculation, the minimum salary shall be equal to Corporal-basic).
Regular Force and Class C Reserve Force:
- The LTD benefits for the Regular Force equal 75% of salary on release, less other relevant sources of income*.
- For Class C Reserve Force the LTD benefits equal 75% of monthly salary, applicable at the time the illness or injury occurred, less other relevant sources of income*.
Primary Reserve Force on Class A and B Service:
- For Primary reservists on Class A or B service of 180 days or less, the LTD benefits, when added to income from other sources**, equals 75% of a deemed monthly basic salary of $2,700 or 75% of your additional optional coverage if purchased.
- For Primary reservists on Class B service of more than 180 days, the LTD benefits equal 75% of your monthly salary applicable at the time the injury or illness occurred, less other relevant sources of income**.
* Other relevant sources of income include:
- The Canadian Forces Superannuating Act (CFSA) benefits;
- The primary benefits under the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP); and
** For the Primary Reserve Force on Class A or B service, other relevant sources of income include all of the above and, in addition, benefits payable under:
- A LTD coverage provided through another employer;
- Other disability employment plans, such as workers compensation;
- An automobile insurance;
- An employee pension plan; and
- The Government Employee Compensation Act (GECA).
Please note that once the Insurer approves your claim, you are paid the full amount of the LTD benefits up front with the understanding that any subsequent awards received under the CPP/QPP and any retroactive payments, will have to be reimbursed to the Insurer and, if applicable, your monthly benefits will be adjusted accordingly.
Are the LTD benefits taxable? Yes. However, during the first year you become a claimant all the LTD premiums paid during your military career can be deducted for tax purposes.
How do I know if I have LTD coverage?
- If you joined the CF on or after April 1, 1982, coverage is automatic.
- If you joined the CF prior to April 1, 1982, you had to apply for LTD coverage and, if you are covered, it is indicated on your pay statement.
- If you wish to apply for coverage, you must submit an application form to a SISIP FS insurance representative or call us at the number indicated at the end of this document. You will also be required to provide evidence of insurability (i.e., answer questions on your health status).
- If you are a primary reservist on Class A or B reserve service of 180 days or less, coverage is automatic for each period for which you are "on duty". "On duty" means that you are authorized and entitled to pay during the performance of primary reserve service.
- If you are a primary reservist on Class B reserve service of more than 180 days or a reservist on Class C, coverage is automatic for each period of service and is deemed to be twenty-four hours per day, seven days a week.
What is the process if I am released medically from the CF?
- SISIP FS is notified of your medical release;
- SISIP FS verifies your eligibility and informs Manulife Financial;
- Your local Case Manager will give you the LTD claim package; and
- Once all forms are received by Manulife Financial, you are informed of the decision.
Can I submit a claim if I select a voluntary or any other type of release? Yes. However, you must submit your claim within 120 days after your effective date of release and you must qualify as "totally disabled".
When do I start receiving LTD benefits? Once you are approved, the LTD benefits are paid starting the day following your effective date of release from the CF.
For how long can I receive LTD benefits? If you are medically released, your initial benefits terminate 24 months after your effective date of release. Medical reviews will be conducted at 12 and 18 months to determine your eligibility for continued benefits beyond the initial 24-month period. As long as you qualify as" totally disabled", you may be eligible for continued benefits up to your 65th birthday.
If you are released for reasons other than medical and you qualify as "totally disabled" you can receive benefits. Medical reviews are conducted once per year. You may also be eligible for continued benefits up to your 65th birthday, as long as you qualify as "totally disabled".
What are the limitations and exclusions of my LTD plan? No coverage is provided if total disability results from any of the following:
- The injury was sustained as a result of participation in the commission of a criminal offence;
- The injury was intentionally self-inflicted or you attempted self destruction, while sane or insane;
- The total disability has begun during the first twelve months of coverage from injuries or sickness for which you consulted a physician during the six-month period immediately preceding the date you became insured under this Policy; or
- Former members of the Regular Force who are annuitants and serving as Primary Reserve members on Class B service of more than 180 days are not covered during their mandatory period of break in service.
What is the Vocational Rehabilitation Program (VRP)? The VRP prepares you to obtain gainful civilian employment by enhancing your existing education, skills, training and experience if needed. Once approved for LTD benefits the VRP department at Manulife Financial will send you an introduction package containing the objectives and procedures of the VRP. A VRP counsellor helps you determine the best training plan and programs. These plans are approved on an individual basis.
Is there an accidental dismemberment clause within LTD? Yes. Under specific circumstances, you may receive the same benefits as for LTD for up to three years. The length of the benefit is determined depending on the severity of the dismemberment. The accidental dismemberment must be non-attributable to military service, must occur within 365 days of an accident, and you must be released from the CF within three years of the date of the accident. There is no provision for a lump sum payment for accidental dismemberment in the LTD policy.
In the case of conflict between this document and the insurance contract, Policy #901102, the terms of the contract shall prevail.