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Disability Insurance Plan (DI Plan)/Long-term Disability(LTD) Portion of the Public Service Management Insurance Plan (PSMIP) - Treatment of Public Service Superannuation Benefits (PSSA)


DATE: May 21 , 1997
TO: Directors of Personnel
Chiefs of Compensation
Heads of Bargaining Agents, Outside employers
with Their Own pay Facilities
SUBJECT: Disability Insurance Plan (DI Plan)/Long-term Disability(LTD) Portion of the Public Service Management Insurance Plan (PSMIP) - Treatment of Public Service Superannuation Benefits (PSSA)

Attached is an amendment to Appendix A of the Information Notice issued May 2, 1997 on the above subject. The amendment is indicated by an asterisk. There are no other changes.

Please substitute the attached Appendix in the original Information Notice.

Appendix A

Treatment of Benefits payable under the Public Service Superannuation Act (PSSA) as Offsets under the Disability Insurance (DI) Plan and the Long-term Disability(LTD) Portion of the Public Service Management Insurance Plan (PSMIP)

Circumstance PSSA Option Offset from DI/LTD Plans
I. Termination with Less than 2 years Service (1) Return of Contributions (1) No offset.
II. PSSA Disability Retirement Approved (1) Immediate Annuity

or

(2) Lump Sum Payment

(1) Offset immediately by full amount

(2) Offset immediately by amount equal to immediate annuity until full amount of lump sum has been offset

III. PSSA Disability Retirement Applied for but Not Approved (1) Deferred Annuity at Age 60

(2) Annual Allowance

(3) Actuarial Transfer Value

(4) Return of Contributions

(1) Offset at age 60

(2) Offset when payable

(3)&(4 ) Monthly offset at age 60 by amount equal to deferred annuity but capped when total of actuarial transfer value or lump sum has been offset

IV. Application for PSSA Disability Retirement not Made

(1) Deferred Annuity at Age 60

(2) Annual Allowance

(3) Actuarial Transfer Value

(4) Return of Contributions

(1)(2)(3) & (4) Offset immediately by amount of equivalent immediate annuity unless claimant proves that an application for a disability retirement had been declined. Capped when total of actuarial transfer value or return of contributions has been offset.

Where such proof is provided, offsets as in III above. *