Long-Term Disability Insurance

The long-term disability insurance is MANDATORY for all permanent teachers, and for non-permanent teachers at the signing of their fourth full-time contract. It is, however, OPTIONAL for all other non-permanent teachers. They can apply to be covered by long term disability insurance within 30 days of the beginning of the first three contracts that have a minimum .33 workload per term whether or not the contracts are continuous. If a teacher does not apply within this window, he or she will have to provide evidence of insurability (i.e. good health) at his or her own cost.

Although you have to pay for long term disability insurance, it can be very important as it provides security for an illness or accident which prevents you from teaching and earning an income. Long term disability insurance provides a monthly income of 80% of the net salary as long as an illness or disability prevents a teacher from teaching. It continues up to the age of 65 and is not subject to income tax. It takes effect after the two year short term contractual salary insurance ends.

RREGOP allows a teacher to continue to get pension credit for the two years of short term salary insurance and for the first year of long term disability without payment. After this 3 years, pension credits cannot be added unless the teacher returns to work. This can create a problem if a teacher becomes disabled at a relatively young age as it can reduce the pension when the disability insurance payments end at 65. However, once a teacher reaches 60, if it is certain that he or she will not be able to return to work, the teacher can retire and receive the RREGOP and QPP pension yet continue to receive a disability income until 65. This disability pension will be reduced by only one half the RREGOP pension and one half of the QPP pension. This allow the disabled teacher to build up a nest egg to help out once he or she retires. However, as the pensions are taxed, the advantage is slightly reduced but still is valuable.