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Frequently Asked Questions
GENERAL PREMIUM AND BENEFIT CHANGES
Q. Didn't we just go through this a few years ago? Why is the LTD Plan being changed again?
The LTD Plan has improved from a deficit of $35.3 million in December 2003 to a surplus of $4.9 million in December 2006 and a surplus of $16.6 million in December 2008. Therefore, the Nova Scotia Public Service Long Term Disability Plan Trust Fund together with your Employer and the NSGEU have decided to lower premiums and extend benefits.Q. Do changes apply to people currently on Claim?
Changes are made on a go forward basis only. No changes will be made to existing Claims.Q. Why doesn't this change apply to existing Claims?
Claims are paid based on the coverage in place at the time the loss occurs. Therefore, the Plan changes do not apply to someone that has already experienced a loss.Q. Will premiums remain stable?
We constantly work towards achieving a balance between costs and the level of benefits paid. Within this framework our goal is to keep premiums stable.Q. Why are you reducing premiums?
The premium rate being paid prior to this reduction exceeded the rate paid by most similar organizations. The current premium reductions and benefit increases are intended to help the LTD Plan serve the needs of its members and be more aligned with similar plans in Canada.INCREASED COVERAGE TO AGE 65 AND OVER
Q. Does this apply to existing claimants?
Changes in coverage are on a go forward basis only, which means benefits for existing claimants remain the same, with no decreases, or increases.Q. What is indexing and what does it mean to me as a Plan member?
Indexing is increasing LTD benefits to keep pace with inflation. This means that if you become disabled and are in receipt of LTD benefits, your purchasing power will not erode because of inflation after you become disabled.INCREASE BENEFIT FROM 65% TO 70% AFTER THREE YEARS
Q. Will this increase include indexing?
Yes, indexing will be considered in increasing benefits to 70%.Q. Why do we have to wait three years after the Claim starts to be paid at 70%?
Benefits are not increased until 3 years after the Claim starts, as this is when the financial impact of being out of the workforce becomes most pronounced, even with inflationary increases.COVERAGE INCREASED FROM $120,000 ANNUAL EARNINGS TO $175,000
Q. Why has coverage increased from $120,000 annual salary to $175,000?
Coverage has increased from $120,000 annual salary to $175,000 to ensure similar coverage is afforded to as many Plan members as possible while also collecting the additional premium for this coverage.REDUCE REHAB OFFSET FROM 50% TO 35% AFTER FIVE YEARS
Q. Why was the offset reduced for those in a rehabilitation program?
The LTD Plan supports a safe and timely return to work and wishes to encourage and reward participation in the rehabilitation employment program. It is anticipated that allowing the Plan member to receive a greater benefit will contribute to this goal.INCREASE ALL SOURCE MAXIMUM TO 90%
Q. Why was the All Source Maximum increased?
The All Source Maximum was increased to allow the fullest possible level of income, without over-compensating the recipient with benefits.
