Government workers in this province have seen a substantial increase in their long term disability rates over the last few years.
Many have found their rates going up by as much as 60% in the last five years! Many workers are starting to find these rates unaffordable.
A recent memo from government stated that Long Term Disability Rates are increasing again by another 9.8%.
“Bi-weekly deductions for Long Term Disability will depend on the employee’s class (which is an employee’s actual age minus their pensionable years of service) and their annual salary. An example would be a 45 year old employee with 10 years of service and an annual salary of $60,000. Bi-weekly deductions for this employee would increase from $100.80 to $111.00 (9.8%).”
Buying a personal disability plan might be a good solution. Most Newfoundland government workers can purchase a similar personal plan that guarantees no price increase from enrollment to age 65. These rates can be substantially less than their current plan.
Personal plan rates can be substantially less than their current group plan. In one recent example, an Eastern Health worker was able to bring her rates down from $212 per month to $85 per month, with essentially the same type of coverage she had previously. That’s a whopping 60% decrease.
There’s no cost or obligation if you want to meet with one of our advisors about protecting one of your greatest assets – your future income. Request a meeting. You’ll be glad you did.