How does the shortened EI waiting period affect your company disability insurance plan

Effective January 1, 2017 the Government of Canada reduced the waiting period for Employment Insurance (EI) benefits, from 14 days to 7 days. The change will impact claimants who’s date of disability occurred after January 1. The 15 week duration of benefits isn’t changing.

If your plan is part of the EI premium reduction program

If your short-term disability plan is part of the EI premium reduction program, in order to remain EI qualified, your plans STD waiting period must be amended to show a 7 day or less waiting period. The Government of Canada is allowing a four-year transition period to amend your plan.

Amending the STD plan to reflect this change will impact your rates. Retroactive amendments are not allowed, as they may affect claims already in progress.

If you have a Long Term Disability Plan only.

If you have an LTD plan but no STD plan, a reduction in the LTD waiting period will help avoid a gap in coverage.

For Example. If your plan includes a LTD waiting period of  119 or 120 days (17 weeks), and you amend it to 112 (16 weeks), your plan members won’t experience a one week gap in coverage between the date EI ends and LTD begins.

Here’s how your LTD plan would work without an amendment.

  • Week one no EI benefits
  • Week 2 to 15 (EI benefit period)
  • Week 16 ( No EI or LTD benefits)

Amending your LTD plan to reflect this change will impact your rates.

 

 

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