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Update on Bill 124 and LTD benefit payments


With the recent repeal of Bill 124 by the Government of Ontario, plan members may be wondering how this may impact their long term disability (LTD) benefit payments, especially retroactive increases since the collective agreements are being settled in the current round of negotiations. 


What is Bill 124? 

In November 2019, the Protecting a Sustainable Public Sector for Future Generations Act  (Bill 124) was legislated. The goal of the bill was to cap public sector wages for three years to help eliminate the deficit. Bill 124 impacted all public sector workers, including teachers, nurses, and other civil employees. On February 12, 2024, the Court of Appeal for Ontario ruled in favour of the workers, finding that the bill violated the collective bargaining rights of public sector workers. Shortly after (February 23, 2024), the Government of Ontario repealed the bill. 


How does this impact LTD benefits? 

Once the central agreements are settled, retroactive salary and LTD claim payment adjustments may be made. 

In anticipation of the agreements from the unions and affiliates regarding the reparation to education employees, OTIP will continue to work through the impacts of Bill 124 and the process to complete the LTD claim payment adjustments.  

Note: To be eligible for claims payment adjustments, LTD contributions will be required on retroactive pay for all members covered under the LTD plan.  

OTIP will be working with the school boards to collect information and contributions/premiums from eligible plan members who:  

  • are currently covered under the LTD plan,  
  • are receiving LTD benefit payments with a benefit start date on or after September 2, 2019, or
  • were receiving LTD benefit payments with a benefit start date on or after September 2, 2019, but whose claims are now closed.  


Due to the manual nature, complexity, and potential high volume of the LTD claim payment adjustments, it will take considerable time for us to complete this process. Once we have more information, plan members will be informed of the status of their LTD claim payment adjustments. 

Questions? You can email Group Life & Disability Claims at: OGL&DC@otip.com.

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