VICE PRESIDENT’S MESSAGE
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t has been a difficult year with this global pandemic and, as front-line workers, there has been no time to take a break. Nobody wants to be unhealthy, but if the situation arises, we have an insurance plan every member should know about. So, what is LTD? The long-term disability (LTD) benefit is an insurance policy. There is no reason for someone not to apply for LTD, providing they are off work, on disability or modified duties for more than six months uninterrupted. That would include anyone already in the process or approved for WSIB. If a member does not apply within a year, Manulife will consider the claim closed. To qualify for LTD, a member must be under the age of 65. If the member is between the age of 60-65, they could not qualify if they had accumulated 25 years or more of pensionable TFS service at age 60. An employee who reaches 25 years of pensionable TFS service AFTER age 60 will not be affected by this provision. Most LTD plans range from 50% to 80% of an employee’s annual salary. The City of Toronto’s LTD plan with Local 3888 pays seventy-five percent (75%) of an employee’s basic salary, including any benefit paid under any pension plan, insurance plan and/or Workplace Safety and Insurance Act. The monthly amount of LTD is based on gross earnings, not net; so, a member’s take-home pay on LTD (short-term) is similar to a member not on disability. When approved for LTD, payments are paid monthly through the insurance provider instead of bi-weekly by the City of Toronto. A common myth suggests that people on LTD from ten years ago make the same wages as members’ income today. I wish this were true, but it is not. Unfortunately, our plan does not allow for the cost-of-living indexing.
How is the annual rate of pay for LTD benefits determined? LTD benefits are determined by the date of the disability. Date of Disability: The date of disability is identified by the last day worked before the six months, uninterrupted qualifying period. When a member gets approved for LTD, there are no increases from that date. In other words, if someone went off on disability ten years ago, they would be receiving 75% of the current salary they were making at the time. A first-class firefighter made $80,000 ten years ago. If they are still off on LTD today, that would be their date of disability amount. Unless the member returns to work, there is no way to increase their pension, salary and other increments while on LTD. Is the member on LTD still able to use their benefits? The City of Toronto provides employees who are in receipt of long-term disability plan benefits benefit coverage under the Extended Health Care, Group Life Insurance and Dental Plans. Under this plan, the City shall pay one hundred percent (100%) of the premiums. What is a qualifying period? Qualifying Period: To qualify for LTD, it takes six months of uninterrupted time. During the six (6) month qualifying period, the employee is subject to participating in the Modified Work Program Policy, which will not interrupt the qualifying period to qualify for LTD. Generally, a member will receive a package in the mail after three months. If they do not receive a package, please contact the Association. When calculating the long-term disability benefit referred to in clause 16.06(a), above, the employee’s basic salary shall take into account changes in salary, if any, that occurred
during the “qualifying period” if the employee was a participant in the Modified Work Program at the time that the salary change(s) took effect. A member who has applied for the long-term disability benefit, but who has exhausted their sick pay credits before the conclusion of the six (6) month qualifying period, may use any vacation entitlement or lieu time owing as sick credits. In that case, the vacation or lieu time will be treated as sick pay credits, and the provisions of this Article and Article 14 of the Collective Agreement will apply. What are the different parts of the LTD package? The LTD package has three sections: • Employer’s Statement: The employer confirms the date of disability and timelines and delivers information directly to Manulife. The member never receives this package. • The Physician’s Statement: The member’s family doctor or specialist should fill out the physician’s statement. It is important to note that when someone applies for LTD, it isn’t like WSIB. The medical treatment provided should be holistic, taking into account all ailments. For example, a member may have a mental health issue, but is off due to a shoulder replacement. The member should report all their pertinent medical history on the forms. • The Member’s Statement: The member provides information regarding the claim, history, and a personal perspective of the symptoms and conditions. Continued on page 12 Vo l u m e 1 5 | I s s u e 2 | F I R E WAT CH 11
