At long last, the federal government is moving forward with the
Canada Disability Benefit which was promised in 2020.
In theory, the benefit, which is intended to enhance the lives
of Canadians by reducing disability-related poverty, is an
excellent concept. Still, it requires safeguards to ensure it does
not create an unintended and undeserved windfall for insurance
companies.
There is a direct correlation between being disabled and living
in poverty for many in Canada and many have been waiting for years
for Bill C-22 to come into effect.
But there is a potentially unforeseen consequence related to the
current wording of the legislation that must be addressed. There is
concern it could be possible for long-term disability (LTD)
insurance carriers to deduct or offset the benefit from any
payments provided to an insured person.
