TCRC CTY LTDReimbursement of LTD Premiums Paid In Error
April 8, 2019 - Dear Sisters and Brothers, This is further to
our December 21, 2018 Newsletter, in particular the reimbursement of the
41 weeks prior to attaining an unreduced pension. The newsletter stated;
“Members will also be entitled to apply for the
reimbursement of their LTD premium contributions that were made 41 weeks
immediately prior to attaining their unreduced pension. Members will be
required to submit their application (forms are available online at the
CTY-LTD website) along with proof of the date they attained their 85
points (birth certificate).”
Members who have reached 85 points
There
has been some confusion on this and therefore we would like to clarify
as follows;
Members who have reached 85 points (minimum
age 55 and 25 years of service) and continue to work will have
their premiums ceased. Upon retirement the member will submit “retirement
form” and at that time the last 41 weeks will be determined. If any
of the 41 weeks were weeks that premiums were deducted those weeks will
be reimbursed.
E.g. 1) Member is eligible for an unreduced
pension on January 1st. (55 plus 30 yrs. service) and they continue to
work however the deductions are correctly stopped at that time. Member
decides to retire on June 1st of the same year. The member will submit
the applicable form to Canadian Benefits and the plan administrator will
go back 41 weeks from the retirement date and pay back all premiums paid
within that period. In this case, the 41 weeks prior to retirement is
August 19th of the previous year. Considering the member was deducted
for LTD from August 19th until January 1, when he was eligible for an
unreduced pension, he/she would be entitled to those 19 weeks of
premiums.
E.g. 2) Member is eligible for an unreduced pension on
January 1st. (55 plus 30 yrs. service) and they continue to work however
the deductions are correctly stopped at that time. Member decides to
retire on December 1st of the same year. The member will submit the
applicable form to Canadian Benefits and the plan administrator will go
back 41 weeks from the retirement date and pay back all premiums paid
within that period. In this case, the 41 weeks prior to retirement is
February 18th of the same year. Considering the member was not deducted
for LTD from February 18th until he retired on December 1, he/she
would not be entitled to any reimbursement of premiums
as there were no premiums deducted during those weeks.
This is
based on members who have not reached 85 points are able to collect Ltd
up to the date they have reached their 85 points and unreduced pension.
We have submitted the names of the CTY members who have reached, and are eligible for an unreduced pension. We have been informed by the Company that the deductions have been ceased effective April 1, 2019. Any member who is deducted after they have reached 85 points (minimum age 55 and 25 years of service) they are to inform their Local Chairman and submit the “premiums deducted after 85 points form”. Canadian Benefits will reimburse those premiums that were deducted.
Members are asked to advise of any errors of this nature, as well as if they have not been deducted at all asap. It is imperative for members to confirm that they are properly deducted to ensure the disability coverage is in place.
We trust that this newsletter will clarify some of the questions we are
receiving however feel free to contact us at
info@ltdcty.com
Yours in
Solidarity,