Based on your responses, you may qualify to apply for a commutation of your long-term disability benefits. Meeting these criteria does not guarantee approval. We review and approve applications based on individual circumstances.

Applying for a commutation: What you'll need and what to expect

If the self-screening tool indicates you may be eligible to apply for a commutation, the next step is to complete a formal application and provide supporting information.

Before you apply

A commutation request must be for a specific purpose and demonstrate how converting future monthly benefits into a lump sum will help preserve or improve your long-term financial position.

As part of your application, you will be asked to explain:

• The amount you are requesting
• The purpose of the commutation
• Why you are applying at this time
• How the lump sum will preserve or enhance your long-term income or assets
• Your current income, expenses, assets, and financial obligations

Important things to consider

Before applying, keep in mind:

• A commutation permanently converts some or all future monthly benefits into a lump sum.
• Future cost-of-living increases will not apply to the portion that is commuted.
• The portion of your retirement benefit already set aside remains protected and payable at retirement age.
• A commutation may affect your tax situation or eligibility for income-tested programs and benefits.
• Approval is not guaranteed. We assess every application individually under provincial legislation and WorkSafeBC policy.

Information you need to provide

When you apply, you must provide:

• Details about your monthly income (and your spouse's monthly income, if applicable)
• Information about your major assets, such as:
  • Real estate
  • Vehicles
  • RRSPs
  • Investments and savings
• A summary of your monthly household expenses
• Information about any outstanding loans or debts
• Evidence of a stable source of income, such as:
  • Employment confirmation
  • Pay statements
  • Pension income statements
  • T4 slips or income tax returns

Additional documents based on your purpose

Purchasing a home

If you're requesting funds to purchase a home, you'll need:

• Mortgage qualification information from your lender
• Details about the home you intend to purchase, including its value and type
• Information about the income of anyone else who will be listed on the title, if applicable

Please note: Commutations are generally considered only for the purchase of a primary residence and are not typically approved for vacation, retirement, rental, or investment properties.

Debt or mortgage reduction

If you're requesting funds to pay down debt, you'll need:

• Details of each debt or loan, including:
  • Date incurred
  • Original amount
  • Purpose
  • Interest rate and repayment terms
• Current loan statements and documentation from lenders

Most requests to pay off consumer debt are not approved because they do not typically enhance long-term income or assets.

Education or training

If your request supports education or training, you'll need:

• Information about employment opportunities and expected earnings after completing the program
• Program or course details, including:
  • Costs
  • Supplies and books
  • Start date
  • Admission requirements
• Documentation of any funding already secured
• Relevant educational transcripts

Business start-up

If you're requesting funds to start or purchase a business, you will need:

• A completed Business Startup Plan (Form 65W127) application
• A comprehensive business plan
• Audited financial statements if purchasing an existing business
• Additional information that may be used for an independent business viability assessment

What happens after you apply?

Once your application is received:

1. We'll review your application and supporting documents. We may request additional information if needed.
2. Your application is assessed according to policy criteria, including:
   • Whether the purpose supports your long-term financial well-being
   • Whether you have other stable income sources
   • Whether the proposed use of funds is consistent with policy
3. In some cases, we may get specialist input from vocational rehabilitation or an independent business feasibility review.
4. You'll be notified when a decision is made.

How long does it take?

Decision times can vary depending on:

• The complexity of the request
• The completeness of the application
• Whether additional information is required
• Whether external reviews or assessments are needed

To help avoid delays:

• Complete all sections of the application
• Provide clear explanations and supporting documentation
• Submit all required attachments at the same time
• Respond promptly to any requests for additional information

Ready to apply?

If the self-screening tool indicates you may be eligible to request a commutation, the next step is to contact our Claims Call Centre at 604.231.8888 (Lower Mainland) or 1.888.967.5377 (toll-free) and ask to be transferred to Long Term Disability Services for assistance.

A member of our Long Term Disability Services team will give you a personalized commutation application package. The package will include:

• An estimate of your current long-term disability benefit reserve (the approximate lump-sum value of the portion of your future benefits that may be available for commutation at the time of your request)
• Information about the supporting documents required for your specific purpose

Because commutation values are calculated using actuarial assumptions and can change over time, any estimate provided is for planning purposes only and is not a guarantee of the amount that may ultimately be approved.

Please note: Receiving an application package or reserve estimate does not guarantee approval of a commutation. All requests are reviewed on an individual basis and must meet the requirements of provincial legislation and WorkSafeBC policy.