DEFINITION: Long Term Disability (LTD) – A government of Canada program that provides financial support to individuals who are unable to work due to a disability that is expected to last for an extended period of time.
FAQs:
1. Who is eligible for long term disability benefits from the government of Canada?
– To be eligible for long term disability benefits, individuals must have paid into the Canada Pension Plan (CPP) for a certain number of years and meet the necessary medical criteria set by the government.
2. How long does the long term disability benefit last?
– The length of the long term disability benefit depends on the severity of the disability and the individual’s ability to return to work. It can continue until the individual reaches the age of eligibility for retirement benefits.
3. How much financial support does the long term disability benefit provide?
– The amount of financial support provided by the long term disability benefit varies based on the individual’s average earnings and contributions made to the CPP. The exact amount is determined by a formula established by the government.
4. Can individuals receive other benefits while on long term disability?
– Yes, individuals receiving long term disability benefits may also be eligible for other government benefits, such as the Disability Tax Credit, Provincial Disability Assistance Programs, and private disability insurance benefits.
5. Is there a waiting period before individuals can receive long term disability benefits?
– Yes, there is usually a waiting period of four months after the onset of disability before individuals can start receiving long term disability benefits. However, retroactive payment may be available for the waiting period upon approval.
6. Can individuals work while receiving long term disability benefits?
– In most cases, recipients of long term disability benefits are not allowed to earn income through employment. However, there may be exceptions or limited work options for specific circumstances, which should be discussed with the government agency handling the benefits.
7. Is long term disability benefits taxable?
– Yes, long term disability benefits from the government of Canada are considered taxable income. Recipients are required to report these benefits on their annual tax returns and may be subject to income tax on a portion of the benefit amount.