The laws and programs of British Columbia’s long-term disability benefits are a must-know for businesses and their employees. This is to prepare them in case of unexpected events and to help employees recover without any mental and financial difficulties.
What are British Columbia’s long-term disability benefits?
British Columbia’s long-term disability benefits provide workers compensation or a percentage of their salary for a certain period if they are unable to work due to a disability, injury, or sickness. The details of BC’s long-term disability benefits will depend on the insurance plan or contract.
When disputes on benefits come up, Canada’s common law on insurance and contracts will govern. This is in addition to the applicable BC law that enacted the long-term disability benefits that the employee is claiming under.
There are numerous long-term disability benefits in BC which employees and their businesses may choose to apply with:
- Disability insurance plans offered by private insurance companies
- Long-term disability plan for British Columbia’s government employees
- WorkSafeBC
- British Columbia’s Disability Assistance
- Canada Pension Plan (CPP) by the federal government
1. Private disability insurance companies
Usually, employers or businesses buy insurance plans from private insurance companies for their employees. Insurance premiums will have to be paid either by the employer and/or the employee. In some cases, payment of insurance premiums is shared between the employer and the employee.
BC’s long-term disability benefits through private entities will define their own policy and terms. This may include:
- the minimum paid insurance premiums to be covered
- what medical condition is covered
- how much will be paid to the employee
- any other conditions regarding the long-term disability benefits
2. Long-term Disability Plan for BC government employees
Regular government employees of BC are also entitled to long-term disability benefits under the provincial government’s Long Term Disability Plan. This was established through the Public Service Benefit Plan Act and the Long Term Disability Plan Regulation.
The Long-term Disability Plan will start once the employees’ period for Short Term Illness and Injury Plan (STIIP) ends. To be eligible, the employee must:
- work in a government position, at least half-time
- render at least 6 months of active service
- have been under the regular care of a medical doctor
- have sufficient medical evidence to support their long-term disability claim
3. WorkSafeBC
One of BC’s long-term disability benefits for employees in the private sector is through WorkSafeBC (WSBC). The WSBC is the workers’ compensation program which also offers return-to-work rehabilitation, compensation, and other health care benefits.
WSBC was established through the Workers Compensation Act and the Occupational Health and Safety Regulation.
Coverage
Contributions to WSBC insurance are mandatory for all employees in BC. Otherwise, the employer will be liable for the employee’s claim costs and unpaid premiums.
In general, all employees must be registered under the WSBC:
- full-time, part-time, casual, and contract basis employees
- contractors working for an employer
- employees sent to other provinces to work
- employees from other provinces who work in BC
There are certain exceptions from the automatic coverage under the WSBC:
- self-employed persons who do not hire any employees
- contractors operating as an independent business
No-fault insurance system
WSBC provides for a “no-fault insurance system”. This means that the employer is protected against any lawsuit from its employees. Employees are also protected from lawsuits by other employees.
This insurance system will also cover any work-related or occupational injury or illness, regardless of who is at fault.
Watch this video to know more about WorkSafeBC’s injury benefits:
Injured employees may also get in touch with one of Lexpert's best long-term disability lawyers in BC for further advice.
4. BC’s disability assistance
The provincial government aids designated Persons with Disabilities (PWDs) through financial assistance. To be eligible, the applicant:
- must be a designated PWD
- Must have assets that do not exceed C$100,000
- must not be receiving any of BC’s long-term disability benefits
5. Federal Government’s Canada Pension Plan (CPP)
Canada Pension Plan (CPP) is an insurance and pension policy operated by the federal government. Employees in BC and other provinces (except for Québec, which runs its own Pension Plan) are required to contribute to the CPP.
Employees in the private sector and self-employed individuals are eligible under the CPP disability benefits if they:
- are under 65 years old
- have made substantial contributions to the CPP
CPP and WSBC
When an employee is already receiving long-term disability benefits under the CPP, their WSBC benefits will be reduced. This applies if both the CPP and the WSBC compensate an employee for the same disability and if the disability is a permanent one.
How much are BC’s long-term disability benefits?
Each of BC’s long-term disability benefits will differ in the monthly payment it provides to the eligible employee:
- BC Long-term Disability Plan for government employees:
- for Bargaining Unit employees: 70% of the first C$2,997.54 of their regular monthly earnings, plus 50% of earnings above C$2,997.54
- For other employees: 70% of the first C$2,600 of their regular monthly earnings, plus 50% of earnings above C$2,600
- WorkSafeBC: in general, 90% of an employee’s net earnings
- Disability Assistance:
- C$1,358.50 for a single person
- C$1,703.50 for a single parent with one child
- C$2,143.50 for a family with one child, where one or both spouse/s is/are designated PWD/s
- $2,423.50 for a family with no children, where one or both spouse/s is/are designated PWD/s
- Canada Pension Plan: maximum monthly payment of C$1,538.67 (as of 2023)
How do I apply for BC’s long-term disability benefits?
Applying for any of the BC long-term disability benefits depends upon the program or insurance plan being applied for. It may be done online, through one’s employer, or through the physical offices of the program.
One common process among the BC long-term disability benefits is the need for a medical report, or any medical record from a doctor or a physician.
As for WSBC, work-related injuries and illness must first be reported to the employer and the WSBC.
Look at what qualifies for long-term disability in Canada and other considerations when applying for disability benefits.
To know more about long-term disability benefits for BC or any other province, contact one of Lexpert's top-ranked long-term disability lawyers.