The Ontario Budget introduced by the newly-elected Liberal
government on July 14, 2014 includes a proposal for mandatory
insurance of long-term disability (LTD) benefits. The Budget was
accompanied by Bill 14, Building Opportunity and Securing Our
Future Act (Budget Measures, 2014) (the Bill) which
amends the Insurance Act (Ontario) to prohibit the
provision of LTD benefits unless they are provided through an
insured arrangement with a licensed insurer.
The Bill provides that exemptions and transitional provisions,
if any, will be set out in regulations. The Bill received Royal
Assent on July 24, 2014 and will come into force on a future date
to be proclaimed.
The amendments proposed in the Bill are similar to the insurance
requirements for LTD plans in the federally-regulated private
sector which were introduced in 2012, as previously discussed here. The federal legislation requires
federally-regulated employers to obtain insurance for any LTD plans
they offer to employees. The purpose of these legislative
provisions is to provide employees on disability with some
protection should the employer become bankrupt. The federal
legislation came into effect on July 1, 2014.
The Canadian Life and Health Insurance Association (CLHIA) has
long advocated in favour of legislation providing for mandatory
insurance of LTD benefits as a means of enhancing the security of
LTD benefits. A copy of CLHIA's policy paper, Protecting
Canadians' Long Term Disability Benefits, is available here.
Once the Bill comes into force, Ontario employers that provide
LTD benefits on a self-insured, "administrative services
only" basis may no longer be permitted to continue such
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Unfortunately, reasonable accommodation for employees in the workplace continues to be the source of significant litigation and even today we continue to see outrageous examples of employers behaving badly.
A former teacher at Bodwell High School has learned a valuable lesson from the B.C. Human Rights Tribunal— it is not discriminatory for an employer to offer child-related benefits to only employees with children.
We are now beginning to see reported cases involving charges and subsequent fines laid against employers for failing to provide information, instruction and supervision to protect a worker from workplace violence.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).