Updated on: April 29, 2024
With the recent repeal of Bill 124 by the Government of Ontario, plan members may be wondering how this may impact their long term disability (LTD) benefit payments, especially retroactive increases since the collective agreements are being settled in the current round of negotiations.
How does this impact LTD benefits?
Once the central agreements are settled, retroactive salary and LTD claim payment adjustments may be made.
In anticipation of the agreements from the unions and affiliates regarding the reparation to education employees, OTIP continues to work through the impacts of Bill 124 and the process to complete the LTD claim payment adjustments.
Note: To be eligible for claims payment adjustments, LTD contributions are required on retroactive pay for all members covered under the OTIP LTD plan.
OTIP is working with the school boards to collect information and contributions/premiums from eligible plan members who:
- are covered under the LTD plan
- are receiving LTD benefit payments with a benefit start date on or after September 2, 2019, or
- were receiving LTD benefit payments with a benefit start date on or after September 2, 2019, but whose claims are now closed. This does not apply if the plan member is deceased
As of mid-April 2024, we calculated that there are over 4,000 plan members who may be eligible for LTD benefit payment adjustments. Due to the manual nature, complexity, and the approximate number of eligible plan members for LTD claim payment adjustments, we will strive to complete this process by the end of 2024.
Why does it take so long?
Here are the critical steps that need to be completed before OTIP can process LTD claim payment adjustments for eligible plan members:
- Plan members must receive payment of their retroactive earnings.
- School boards must collect and remit LTD premiums/contributions to OTIP on the retroactive salary/earnings of ALL employees in the LTD plan.
- School boards must provide to OTIP the revised salary (in effect on the day prior to the Benefit Start Date) and the effective date of when their retroactive earnings changed for impacted members who are (a) receiving LTD benefit payments with a benefit start date on or after September 2, 2019, or (b) were receiving LTD benefit payments with a benefit start date on or after September 2, 2019, but whose claims are now closed. This does not apply if the plan member is deceased.
We continue to work closely with the school boards to ensure the process is as efficient and timely as possible for all parties involved. We also anticipate that some claimants may need a subsequent adjustment to their claim because of the current round of bargaining being finalized at a future date.
Please rest assured that we are working diligently and as quickly as possible to process LTD claim payment adjustments for eligible plan members.
We appreciate your patience and cooperation.
Questions? You can call OTIP Benefits Services at 1-866-783-6847.