Ontario’s budget, which received royal assent last week, included an amendment to the Insurance Act to prohibit the provision of long-term disability (LTD) benefits in Ontario unless they’re provided through an insured arrangement with a licensed insurer, according to a Blakes Bulletin.
If there are any exemptions or transitional provisions, they may be set out in regulation. This change will come into force on a future date to be proclaimed.
“This change is similar to legislation passed by the federal government in 2012 that requires long-term disability plans for federally regulated employees to be insured,” states the Bulletin. “The federal legislation came into effect on July 1, 2014. The federal legislation applies on a go-forward basis, meaning that long-term disability benefits that are in pay to employees on July 1, 2014, do not have to be insured.”
Blakes says that employers in Ontario and federally regulated industries who currently self-insure their LTD benefits programs will need to consider these arrangements in light of the new requirements.
Related article: