Plan Background
The Province of Nova Scotia and the Nova Scotia Government and General Employees Union (NSGEU) jointly established the LTD Plan in 1985. The LTD Plan is funded equally by employer and employee contributions. The LTD Plan has come from a position of significant underfunding in 2002, to its current position of being fully funded and financially strong.
Over the years a number of changes have been made to sustain the LTD Plan, however, a shortfall in funding of $35.3 million, still existed as of December 2003. And, as of December, 2008 the Plan had more than it required to meet current commitments. In light of this new funding position and for the first time in its history, the Nova Scotia Public Service Long Term Disability Plan Trust Fund together with your Employer and the NSGEU is now able to reduce premiums and increase benefits:
- Coverage will be extended past age 60 to age 65 and over
- Coverage beyond age 63 is limited to two years of benefits
- Premium rate payments by both employees and employers will be reduced by 25%
- Covered salary has been increased from $120,000 to $175,000
- Benefits are increased from 65% to 70% after three years in receipt of LTD
- Reduced rehabilitation 'offset' from 50% to 35% after five years in receipt of LTD (i.e. employees get to keep more of what they make when participating in a rehabilitation employment program, up to 100% of salary)
- All Source Maximum (employee's total income from all sources, used when determining benefits) is increased from 80% to 90% after five years in receipt of LTD
The following examples show the effect on one's salary:
- Your contributions will decrease by 25% so, if you earn $40,000, your total decrease per pay is $6.77 or $176.00 annually. Normally, you would have contributed $27.23 per pay and $708.00 annually.
- If you earn $65,000, the decrease would be $11.00 per pay or $286.00 annually. Normally you would have contributed $44.25 per pay and a yearly contribution of $1,150.50 annually.
A collaborative effort between the LTD Plan, human resource personnel and managers will ensure that information is received in a timely manner and through different media including the a video posted on the NSPS website (www.nsps-ltd.com), a brochure, and information on the government website (www.gov.ns.ca), as well as the NSGEU website (www.nsgeu.ns.ca)
The LTD Plan is committed to provide its members with long-term security, and to support them when they are ill and away from work.