Alberta to require funding of LTD benefits: A dangerous precedent?

By Karen DeBortoli
|Canadian HR Reporter|Last Updated: 04/27/2001

Alberta legislation to secure employees’ long-term disability benefits may have employers reconsidering offering such plans.

Provisions under the province’s new Insurance Act (the Insurance Act, 1999), which could come into effect as early as this fall, will require employers to insure long-term disability (LTD) plans providing benefits for more than two years. Because employers provide LTD benefits at their discretion, any regulatory regime covering LTD plans must strike a delicate balance.

There must be safeguards to ensure that disabled employees receive the benefits they were promised and so desperately need. But regulatory controls must not make the provisions of such plans so onerous and expensive as to cause employers to elect not to provide LTD plans.