Understanding Offsets for Other Income in Disability Benefits
Q: How are Tom’s long-term disability benefits affected by other sources of income?
A: Tom’s LTD benefits will be reduced by income from Canada Pension Plan (CPP) or WorkSafeBC, except certain partial disability awards.
During a conversation with his case manager, Tom learns that any disability or retirement benefits he receives from the Canada Pension Plan (CPP) will reduce his LTD benefits. Similarly, benefits from WorkSafeBC—except for partial disability awards already received for at least 12 months—will also result in a reduction.
While this adjustment initially worries Tom, he appreciates the transparency. With the help of his case manager, he carefully reviews all his sources of income to avoid surprises. Tom knows that, even with these offsets, his disability benefits will provide crucial financial support during his recovery. Sarah is grateful that they are still able to plan their finances effectively with the clear information provided by the plan.