Disability insurance plays a critical role in ensuring that those who are off work due to disability have access to the income they need to survive. Every worker contributes to the Canada Pension Plan and many also rely on private disability insurance payments provided through their employer.
However, these private disability payments are always less than the worker was paid while they were working. This often leaves a big income gap at a time when the worker’s expenses are actually higher because of their disability-related needs.
To compound the problem, private insurance companies have a practice of deducting Canada Pension Plan (disability) (CPP-D) benefits from any long-term disability payments. This unfair practice means that even though workers have paid into both programs, their income is capped at the LTD rate. When CPP-D rates increase every year, they see no benefit.
Paul Reilly is on a long-term leave from Ford Motor Company, and qualifies for both CPP-D and long-term disability through Ford’s private insurance plan. The Ford plan deducts his CPP-D payments dollar-for-dollar. He is challenging that practice in an application at the Human Rights Tribunal on the grounds that is discriminates against him on the basis of disability.
To read more about his case, click here.
ISAC has partnered with two other legal clinics – HIV/AIDS Legal Clinic of Ontario and the ARCH Disability Law Centre – to intervene in the case. Our coalition takes the position that deducting CPP-D from long-term disability insurance payments has a negative impact because persons with disabilities need more income, not less, to cover the additional costs associated with their disability.
To read more about our approach to the case, click here.
The case will be heard at the Human Rights Tribunal during the week of June 18, 2018. More information about the hearing location and times will be posted when it is available.