LTD PREMIUM CONTRIBUTIONS
Submitting LTD Premiums
Employers must submit LTD premiums by electronic funds transfer bi-weekly for all employees covered by the Plan.
The bi-weekly payment of LTD premiums is shared equally between employer and employee. It is based on a percentage of the employee's normal salary to a maximum normal bi-weekly salary of $6,730.77.
Premiums must be paid during your employee’s elimination period, and also if your employee is receiving WCB benefits.
-
“Elimination period” means 100 consecutive work days your employee is unable to work or perform regular duties of their occupation because of illness or injury.
Normal salary
-
Normal salary is the regular bi-weekly salary your employee was receiving immediately prior to becoming disabled.
o It includes any educational and/or unit premiums.
-
For relief employees, normal salary is the average biweekly salary they received in the 26 pay periods immediately before the date they became disabled. It includes any salary increases up to the last day of the elimination period.
o If your employee has fewer than 26 pay periods, take the average based on 26 (divide the employee’s total pay by 26).
Termination of premium contributions and end of coverage
-
When an employee accepts an employment position that is not eligible for coverage under the Plan.
-
100 days before the last day of the month in which an employee reaches 35 years of pensionable service.
o Example: If the employee’s 35th work anniversary is July 5th, coverage and premiums end 100 days before July 31st.
o Coverage is based on years of pensionable service, not age. An employee over the age of 65 who has not reached 35 years
of pensionable service is still covered.
Premiums are waived when:
-
an employee is receiving LTD benefits under the Plan
-
an employee chooses not to maintain coverage while on authorized leave
o If they choose this option, they will be treated as a new employee when they return.
Income tax
You will receive a spreadsheet from us each January for T4 purposes confirming the pension contribution and union dues paid on behalf of the employees who are receiving LTD benefits.
Questions?
Download the Premium Remittance Form or contact:
902-461-0421 Ext. 227