Permanent disability benefits
Sometimes a work-related injury or occupational disease results in a permanent disability. If your disability is likely to impair your future earning capacity, you may be eligible for permanent disability benefits from us. The amount of the benefit entitlement depends on the circumstances of your claim.
Assessing your eligibility for disability benefits
To help us assess your eligibility for permanent disability benefits, we may ask you to attend a specialized medical exam so we can get a better understanding of your abilities.
Our focus is on whether and how your condition impairs your future earning capacity. If we find it does, we look at providing permanent disability benefits.
How we calculate disability benefit entitlement amounts
Permanent disability benefits are calculated according to the provisions of the Workers Compensation Act. The purpose of permanent disability benefits is to compensate you for the impact your permanent condition is likely to have on your future earning capacity. We determine the amount using two methods: the loss of function method and the loss of earnings method. The loss of function method is based on the nature and degree of your permanent injury. The loss of earnings method is based on a comparison between your pre-injury earnings and post-injury earnings. You will receive permanent disability benefits based on whichever method results in greater compensation.
How we pay disability benefits
We pay permanent disability benefits either:
- In a lump sum, when your overall disability rating is not more than 10 percent and the monthly payment is not more than $200.
- On a monthly basis, when your overall disability rating is more than 10 percent or the monthly payment is more than $200.
If you would like us to deposit your permanent disability payments and all other future payments into your bank account, you can sign up for direct deposit.
Cost of living allowance
Once a full year has passed since an injury or death, a cost of living allowance may be applied to ongoing payments. Once eligible, the cost of living allowance may be applied each subsequent January 1. See the cost of living allowance for this year.
Disability benefits and your retirement
Disability benefits are usually paid until retirement at age 65. There are some exceptions that depend on individual circumstances, such as age at the time of injury and a specific plan made to work beyond age 65.
In addition to your disability benefits, you are entitled to retirement benefits. For monthly benefits, we set aside five percent of the value of your monthly benefits and invest it until the date of your retirement. The retirement benefits are issued when you have reached the age of retirement. In the case of lump sum benefits, we pay retirement benefits at the time the disability benefit entitlement is granted.
Canada Pension Plan disability benefits and your disability benefits
Some workers receive Canada Pension Plan (CPP) disability benefits for their injury or occupational disease. If you qualify for this, you are required to let us know immediately.
Need more information?
For general claim-related questions, your case manager is your main point of contact. For specific questions about permanent disability benefits, please contact our Claims team and ask to speak to someone in Long Term Disability Services.