ARCHIVED CD 2010-007

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• Sample letter for Disability Insurance
• Sample letter for Long-term Disability Insurance

April 20, 2010

SUBJECT: New Procedures - Disability Insurance and Long-Term Disability Insurance Plans

1. PURPOSE

1.1 The purpose of this directive is to provide details about the new procedures for claiming Disability Insurance (DI) plan and Long-term Disability (LTD) benefits.

1.2 This directive will also identify the roles and responsibilities of Public Works and Government Services Canada (PWGSC) and departmental compensation advisors with respect to the administration of the DI and LTD plans.

2. BACKGROUND

2.1 Currently the DI and LTD claim for benefits forms (other than the physician's medical information) are sent by compensation advisors to the Public Service Pension Centre (PSPC), Insurance Section where they are reviewed for completeness and accuracy, and then forwarded to the appropriate plan administrator (i.e. Sun Life Assurance Company of Canada for DI and Industrial Alliance Insurance for LTD).

2.2 Compensation Directive 2009-002 informed departments that, effective April 1, 2010, compensation advisors would be solely responsible for the accuracy of all information - financial and non-financial - on insurance forms and in the Regional Pay System (RPS). As a result, new procedures have been established for the submission of DI and LTD claim forms to plan administrators.

2.3 Compensation Focus No. 74 published in the fall of 2009 also provides useful tips that can help the compensation advisors to properly complete the DI and LTD claim forms.

3. PROCEDURES/INSTRUCTIONS

3.1 Effective May 3, 2010, compensation advisors are to forward the completed employer, supervisor and employee portions of the DI claim forms directly to Sun Life Assurance Company of Canada or the LTD claim forms directly to Industrial Alliance Insurance. A copy of the employee's birth certificate and most recent work description must also be included with the claim forms. The physician's portion of the claim form will continue to be forwarded, by the physician or employee, directly to the plan Administrator. The claim forms will no longer be sent to the PSPC Insurance Section.

3.2 In cases where plan administrators require clarification or further information regarding an individual claim, they will contact the compensation advisor who signed the employer portion of the claim form.

3.3 PWGSC is currently finalizing the development of an electronic file containing the required employees' Superannuation information that will be sent to the Plan administrators. If the Plan administrators need more details regarding this Superannuation information, they will contact PSPC.

3.4 Compensation advisors must inform the plan administrator, in writing, when notification is received that an employee in receipt of either DI or LTD benefits is terminating his/her employment. (See attached sample letters.) The plan administrator must be notified as soon as the effective date of termination of employment is known in order to avoid any overpayment of insurance benefits.

3.5 The Insurance Administration Manual (IAM), chapter 3 for DI and chapter 4 for LTD, will be amended to reflect the new procedures.

4. ROLES AND RESPONSIBILITIES

4.1. PWGSC -- Compensation Sector

Under the direction of the Treasury Board Secretariat (TBS) Pension and Benefits Sector, the PWGSC Compensation Sector supports the delivery of services related to the DI and LTD plans. The Compensation Sector's responsibilities include, but are not limited to, the following:

• commencing, changing, refunding, remitting, or stopping premium deductions through the pay processing system, after the compensation advisors in departments and agencies of the Government of Canada have entered the proper transaction into the RPS;
• developing administrative procedures, as directed by the TBS , for inclusion in the IAM;
• maintaining the IAM;
• developing and delivering training courses on the DI and LTD plans; and
• providing advisory and information services to corporate compensation offices on matters related to the processes and procedures described in the IAM.

Departments and Agencies -- Compensation Advisors

Departmental compensation services are responsible for supporting the effective administration of public service insurance plans within their department or agency. Compensation advisors must ensure that all activities, processes and procedures associated with the DI and LTD plans, as set out in the IAM , are followed. These include, but are not limited to the following:

• counselling employees on their eligibility to participate as a member of the LTD plan under the Public Service Management Insurance Plan (PSMIP), or of the DI plan, and initiating pay actions to commence premiums;
• providing employees with the information necessary for them to make informed and timely decisions with respect to their claim for DI and LTD benefits;
• providing employees with the appropriate claim forms and co-ordinating their proper completion and dissemination;
• ensuring the plan administrator is informed, in a timely manner, of the claimant's pending termination of employment;
• informing the plan members of the importance of notifying the insurer when they receive Canada Pension Plan (CPP), Quebec Pension Plan (QPP), or pension benefits under the Public Services Superannuation Act (PSSA) to avoid overpayments; and
• responding to enquiries received from plan administrators about individual cases.

5. TRAINING

5.1 PWGSC Compensation Sector, Pay Policy and Training Services Directorate provides insurance courses that are tailored to meet the needs of compensation advisors. These courses are beneficial to compensation trainees and as a refresher for experienced compensation advisors. The schedule of insurance courses available may be found on the PWGSC Compensation Sector Web site at the following link: Welcome to Compensation Training

6. FORMS

6.1 DI forms will be revised. Until the new forms are available, all current DI forms are to be used. However, Part 3 of the Disability Insurance Claim form (TBS / SCT 330 303E) is no longer to be completed.

6.2 LTD insurance forms will be revised. Until the new forms are available, all current LTD forms are to be used. Compensation advisors will have to complete the information previously provided by the PSPC in Part 4 of the form, until such time as the new form is ready. The new revised LTD forms will have this information added to the section completed by the department.

7. INQUIRIES

7.1 Please direct inquires about individual employee claims for benefits to the following plan administrators:

7.1.1. Disability Insurance:

Sun Life Assurance Company of Canada
Federal Government Disability Insurance Plan
PO Box 12500, Stn CV
Montreal QC H3C 5T6
Group Policy No: 12500-G

Telephone Number: 1-800-361-5875
Facsimile Number: 1-866-639-7849

7.1.2. Long-Term Disability Insurance :

Industrial Insurance and Financial Services Inc.
Group Life and Disability Claims Department (PSMIP)
522 University Avenue
Toronto ON M5G 1Y7
Group Policy No: G68-1400

Toll free telephone numbers:
1-800-977-2117 (English) and
1-800-463-0341 (French)

Facsimile Number: 1-877-781-1583

7.1.3 For interpretation of matters related to the contents of the IAM , departmental headquarters (or corporate compensation) may contact:

Public Works and Government Services Canada
Compensation Sector
Pay Policies and Training Services Directorate
Advisory Services -- Insurance Section
10A2, Phase III, Place du Portage
Gatineau QC K1A 0S5

7.2 Please direct your inquiries on this information to your departmental headquarters or corporate compensation.

If the departmental corporate compensation sections have any inquiries on the information contained in this document, they should contact their PWGSC Compensation Services Office.

Original Signed by
B. Fortin

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): CJA 9006-15 9006-16-2