Employment Insurance offers a Short Term Disability Benefit Program to Employees, for 17 weeks. Over the past few years, several Employers have been removing their Short Term Disability benefit through their Group Employee Benefit Program and opting to use Employment Insurance. Since the majority of the claims during the working years are sickness, several companies have put in a Critical Illness Program that can be used to supplement lost income.
Empire Life recently released a Group Advisor Bulletin regarding the up coming changes to the Employment Insurance benefit.
The 2016 Federal Budget released earlier this year included a change that will impact disability coverage on plans. The waiting period for Employment Insurance (EI) benefits will be reduced from two weeks to one week, starting January 1, 2017.
Please note the number of weeks of paid benefit is NOT changing. Currently the payment period is 17 weeks, including a 2-week waiting period (no paid benefit is issued) and 15 weeks of paid benefit. With the proposed changes the payment period consists of a 1 week waiting period (no paid benefit is issued), 15 weeks of paid benefit and 1 week with no benefit.
I have gone back to Empire Life to confirm how the new Waiting Period works if the disability does not last the full 17 weeks. My question is, does the 1 week waiting period at the back end of the claim still apply if the claim is less than 17 weeks? The legislation is so new, Empire Life is going back to their legal department to get further clarification on this wording. I will hopefully be able to continue this conversation on my Blog next week. If there are other questions, please let me know and we can work together to ensure we have a full understanding of the change.
If you are self insuring your Short Term Disability benefit, please ensure that you make these changes to your plan so you stay compliant with the Employment Insurance Premium Reduction.
For more information please contact Glendinning Insurance Services.