As you may be aware, UFV covers the costs of employee benefits with the exception of Long-Term Disability (LTD) benefits. The premium for this benefit is paid by employees through payroll deductions. The advantage of having employee-paid premiums for LTD coverage is that the Canada Revenue Agency (CRA) recognizes the benefit received in the event of a disability as non-taxable. This means that you can receive financial support without worrying about additional tax implications. The disability benefit would be deemed taxable income by CRA if the university were to pay any portion of the premium.
The disability benefits insured through Manulife under our collective agreement are scheduled to renew on April 1, 2024. The following provides more details about the LTD renewal, including upcoming rate changes.
LTD Benefits Plan
The LTD plan’s main objective is to provide financial support through periods of illness or disability. UFV’s plan offers exceptional coverage to members and provides peace of mind should they become unable to work due to a physical or mental illness.
The Long-Term Disability (LTD) benefit is determined on an experience-rated basis for the program as a whole. Under this approach, future premiums are based on comparing claims to premiums over the past five years. Overall, the plan has seen increased claims over the past several years which translates into a required increase of 9.5% for the upcoming renewal period. The increase in claims at UFV aligns with other employee groups in the education sector and indicates a sector-wide trend.
Below is a premium change illustration for an employee earning $100,000 covered under the non-taxable LTD plan.
| LTD Benefit Amount | LTD Premiums effective
April 1, 2023 |
LTD Premiums effective
April 1, 2024 |
LTD Premium increase |
| $5,833 | $293.28 | $321.16 | $27.88/pp |
The LTD benefit is provided by Manulife. Rates are negotiated on our behalf by HUB, our benefit broker. We will continue to work with HUB on cost containment for this benefit, including potential changes to the plan design.
Should you have questions, please do not hesitate to contact the HR Compensation & Benefits Team at (hrcomp.ben@ufv.ca).