LTD offset
Other income sources deducted from a disability benefit.
Long term disability benefits are typically reduced by other income the claimant receives — CPP disability, workers' compensation, or income from a rehabilitation program. These reductions are offsets.
Offsets are why a plan advertising 66.7% income replacement may pay materially less in practice, and they are among the most common sources of employee dissatisfaction at claim time.
What this means for a BC plan
In BC, WorkSafeBC benefits and CPP disability are the offsets that most often surprise claimants. Whether offsets are 'direct' or 'all-source' should be confirmed at plan design, not discovered during a claim.
Related terms
Where this comes up
Disability coverage · All glossary terms · Ask an advisor directly
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