We're Open and Ready for your Call!

Do I Have A Case?
No Fees Unless We Win
Free Online Consultation
Click Here
Fighting Disability Insurance Companies For Over 30 Years

Can My Insurance Company Deduct My Gross CPP From My LTD Benefit?

Disability Benefits - Question 32
Most group LTD insurance policies allow insurers to deduct the gross amount of Canada Pension Plan disability benefits, even though the tax treatment may be different. The way the deduction should work though is as follows. Assuming you have an LTD benefit of $2,500 per month (taxable and gross) and your CPP disability benefit is $1,000 per month, the net amount you should receive is $1,500 (and then tax should be deducted). The $1,000 should not be deducted from your net after tax LTD benefit. It may not make much of a difference in terms of actual dollars you receive, but that is the correct way for the deduction to be made.
Was your question answered? Yes or No

Other Similar Questions

Sign up For Our FREE Newsletter or Booklet
Sign Up Now
Read Our Recent Blogs
Read Now
What Our Clients Say
Read Now