Canadian Disability Management

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These executive summaries were compiled from EMPLOYEE BENEFITS INFOSOURCE database, a source for information on employee benefits and human resources.

Preventing and Managing Depression in the Workplace.
Philchuk, Susan; Benefits and Pensions Monitor; v18 no6 pp 39, 41 Sep 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Although it is not an employer's job to diagnose mental illness, recognizing the signs and symptoms early can prevent deteriorating employee performance. Signs such as chronic tardiness or absence, difficulties working cooperatively and decreased productivity are indicators that support systems should be engaged to avoid disability leave, associated health costs and reassignment of tasks if possible. Employers should have proactive systems in place, with senior management not only establishing programs but remaining engaged with them. Employers must also educate frontline employees and managers about mental health issues.
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Disabled Disability Plans.
Napier, Dan; Benefits Canada; v32 no8 p 65 Aug 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Regarding group long term disability (LTD), Canada Revenue Agency requires that employees pay the full premium to get tax free benefits. Considering taxes, an employer must pay the worker significantly more to provide the extra salary the worker would need to pay the premium for a certain benefit than if the employer paid the premium directly. Plans can be designed so employees can defer taxes and pay at a lower rate if there is a claim, avoiding paying taxes on unused LTD benefits. Nontaxable LTD plans should base benefits calculations on the desired take home pay level rather than a standard formula geared to 85 percent wage replacement. Employers and employees should consider their purchasing power when deciding who pays LTD premiums.
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LTD "Claw-Back" Case Certified by Federal Court.
Godkewitsch, Clio; Canadian Benefits & Compensation Digest; v26 no4 pp 5, 7 Aug 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The plaintiff in Manuge v. Her Majesty the Queen received a disability pension in addition to his monthly salary. When he left employment with the Canadian forces, he started receiving long term disability benefits amounting to 75 percent of his gross salary. The Crown sought to offset his long term disability benefits by the amount received as disability pension. The federal court in Nova Scotia ruled against the Crown's objections that no reasonable cause of action was disclosed and a class action was inefficient. The court determined the case was suited to certification as a class action with Manuge representing the class.
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Link To Full Article
Work Absence Rates.
Perspectives On Labour and Income; v20 no2 pp 78-87 Summer 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Canadian workers have been missing more work days for illness, disability and personal and family responsibilities. Not counting women on maternity leave, 5.5 percent of workers missed all or part of a week for personal reasons in 1997, compared with 8.8 percent in 2007. Time missed rose from 7.4 days to 10.2 days. In 2007, men lost 8.8 days compared with 12.0 days for women. Having preschool aged children at home significantly contributed to absences, but by 2007 men were slightly more likely than women to take time off for personal and family reasons. Workers who are older, union members, in permanent jobs, employed by larger organizations in the public sector and have longer tenure were more likely to take unscheduled personal time.
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The Business Case for Tackling Mental Health.
Hreceniuk, Tara; Canadian HR Reporter; v21 no8 p 26 Apr 21, 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : With costs of between four and 12 percent of payroll, depression is Canada's fastest growing disability. The mental health claims of depression, anxiety and stress are the leading causes of short and long term disability. Most people with mental illness are not properly diagnosed or treated, causing even more of a burden on the economy. Employers can teach managers to watch for signs of mental illness and provide resources for employees. They can improve employee assistance programs by offering assessment, counseling and referral to mental health services. Employers should also stay in touch with employees on mental health leave.
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Advancing Disability Management.
Potvin, Christine; Benefits Canada; v32 no3 pp 27-28 Mar 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Disability management is becoming more complex and costly for employers. Mental health is the leader among claims, and musculoskeletal problems are causing longer disability periods. Integrated absence management provides a solution by pulling together wellness, prevention, casual absence and short and long term disability programs. It covers education and training to help managers spot patterns, possibly prompting a referral to the employee assistance program. Ergonomic assessment and medical screenings can prompt other types of intervention. The focus is on an employee's functional ability and sustaining or returning to fully productive work, regardless of the cause for absence.
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Planning for the Ages.
Maclean's; v121 no4 pp 67-78 suppl. Feb 4, 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Workers who invest $1,000 a year between 19 and 25 years of age and then invest nothing more will have more money at age 65 than those who invest the same amount every year for 40 years starting after age 26. To build the wealth, savers should pay off student loans and establish credit in their twenties. In their thirties, they should buy a house, life insurance, start a college plan for any children, make a will and get serious about a retirement plan. The forties are the time to get debts under control. If credit cards, mortgage and car loans total more than 40 percent of gross income, then job loss or any unexpected expense can mean serious setback. Other savings possibilities include purchasing a vacation home to rent out, charging rent to adult children living at home and using a reverse mortgage to supplement retirement funds.
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Court Extends Limitation Period for Plan Members to Bring Claim, Alleging Negligence.
Mitchell, Ryan; Canadian Benefits & Compensation Digest; v26 no1 pp 2, 4, 6 Feb 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : In Lanctot v. Civil Service Superannuation Board, the Manitoba Court of Queen's Bench extended the limitation period for filing a legal claim to disability benefits so the right of a disabled pension plan member concerning retroactive pension benefits could come to trial. The court ruled the claim requirements for negligent misrepresentation in the case had a reasonable chance of success. This conclusion was based on the plaintiff being owed a duty of care, the defendant making at best misleading representations and defendant's failure to follow up and clarify plaintiff's rights. The court also noted that plaintiff had relied upon information from defendant to his detriment.
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Link To Full Article
Hard Dollars of Depression.
Von Heymann, Chris; Benefits Canada; v32 no2 p 65 Feb 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Findings show that prescriptions costs for employees with depression are more than 2.5 times as much as prescription costs for those not being treated for depression. Employees with depression average 30 prescriptions a year while employees without depression average fewer than 11 prescriptions a year. Among depressed employees, anxiety disorders are 229 percent more prevalent, 185 percent higher for sleep disorders and 71 percent higher for stomach hyperacidity. Elevated cholesterol, hypertension, inflammatory conditions and asthma were other conditions associated with depression. These findings suggest employers should make wellness and disability management a priority.
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Disability, Absences Cost Firms an Average $10 Million: Survey.
Klie, Shannon; Canadian HR Reporter; v21 no2 p 6 Jan 28, 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Seventy-two percent of Canadian companies report that mental health is the leading cause of long term disability, and 82 percent say it is the top reason for short term disability. Results from another study show that most of the time 25 percent of employees do not have the mental or physical energy to perform their jobs. Mental health screening programs along with early intervention can be effective in moderating mental health issues. One online screening program tests for the tendency to mental illness, not just its presence. Screening programs can also improve employee satisfaction and productivity.
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Ending LTD at 65 Could Trigger Legal Challenges.
Shaver, Karen; Employee Benefit News Canada; v5 no1 pp 14-15 Jan-Feb 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Except in limited situations, Canada will no longer force employees to retire at age 65 after 2009. Benefit packages for those employees will not typically include long term disability (LTD) coverage. Because LTD coverage is used to replace income lost when an employee can not work due to disability and older workers who lose income for disability would have access to their full pensions, it has been assumed that they no longer need LTD coverage. Because this assumption has not been clarified either way by the courts or individual provinces, employers consider terminating this benefit are advised to use caution.
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Reading Between the Lines.
Rankin, Neil; Benefits Canada; v32 no1 p 37 Jan 2008; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Sometimes an employee's calling in sick indicates psychological factors associated with disability. Employers should take a proactive approach to disability management, trying to understand workers' attitudes and behavior and soliciting their ideas to build their level of engagement. Statistics on workers compensation claims and use of employee assistance plans and other support services can reflect issues contributing to absenteeism. Employers should establish a formal policy to manage disability claims, train managers on interacting with employees about disability and educate employees about support available to circumvent disability claims. Analyzing claims before and after implementing such initiatives should show long term results.
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Impact of Population Trends on the Workplace.
Scott, Liz R.; Benefits and Pensions Monitor; v17 no8 pp 31, 33, 35 Dec 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : One strategy posed to deal with the pending labor shortage is to rely on workers delaying retirement. Demographic data shows the Canadian population is getting older, and 3.7 million between age 55 and 64 are set to retire soon. Many of these employees may have neither the health nor the desire to continue working. Keeping older workers employed will require more attention to their wellness, the physical and emotional work environment and to disability management. Supervisors interacting with these workers will have to brush up on their supportive people skills, and employers will have to offer a work life balance that appeals to this age group.
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Getting Disabled Employees Back to Work.
Smolkin, Sheryl; Employee Benefit News Canada; v4 no6 pp 14-15 Nov-Dec 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : A union, an insurer and a disability management company have teamed up to save money and get employees back on the job. Since too many patients were drawing disability with no effective care plan in place, the union's long term disability (LTD) plan administrator enlisted Organizational Health Inc. (OHI) to jump start care before disabled employees even filed LTD claims. In some cases OHI contracted with private medical services to expedite the process. The arrangement has shortened the duration of claims, lowered rehabilitation costs 17.2 percent and yielded $5 return on investment.
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More Education Needed on Workplace Mental Health.
Bridgeford, Lydell C.; Employee Benefit News Canada; v4 no6 p 16 Nov-Dec 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : With 35 percent of work absences in Canada tied to mental illness and depression the second leading disability, it is time that mental health problems be recognized and managed. Those afflicted are afraid of repercussions on the job, and while corporate leaders acknowledge the problem, few dedicate any resources. Though mental health problems at work can be hard to pin down, metrics would help starting with analysis of incidents and duration of disability leave and managing return to work. Evidence from the NIH National Institute of Mental Health shows that identifying and treating mental health promotes worker health and productivity, benefiting the organization.
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Small Business Big Price.
Foster, Carly; Employee Benefit News Canada; v4 no6 pp 28-29 Nov-Dec 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Small businesses in Canada are challenged to offer competitive health benefit packages. Large employers can design plans around various features to control costs, but small organizations are limited in feature choices and companies from which to select. Hybrid health plans can provide a solution, taking a defined contribution approach and combining a high-deductible plan with an account to provide coverage for major or catastrophic medical events. The employer insures the employee for major issues and contributes to the employee's, which the employee uses for routine medical and dental expenses. Another cost management approach is to pool risk with member organizations.
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Disability in the Courts.
Giesbrecht, Tina; Ringseis, Erika; Papero, Michelle; Benefits Canada; v31 no10 pp 23-24, 27, 29 Oct 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Employers are often anxious about working with disabled employees and understanding how much they must accommodate to special needs. Statutory, contractual and common law issues apply. Some industries, such as banking, are covered by federal law rather than provincial rules. Employers must consider disability management in terms of human rights, workers compensation, occupational health and safety, employment standards and privacy. They must objectively assess whether conditions of employment are bona fide occupational requirements and whether accommodations would genuinely cause undue hardship.
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Aging Grace.
Galindo, Ophelia; Benefits Canada; v31 no9 pp 27-28, 31 Sep 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The retirement of the baby boom generation poses particular problems for Canadian employers. The workforce as a whole is aging as the number of available workers declines. Employers will need to understand and accommodate the effects of aging on older workers to retain skilled and experienced staff. Research shows that workers over 55 have higher rates of absence due to illness than younger people, and they are much more likely to take long sick leaves. Employers should create a plan to anticipate problems and help employees return to productive roles in the company.
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From Disability to Retirement: An HR Road Map.
Millard, Karen; Harris, Darren; Employee Benefit News Canada; v4 no4 p 10 Jul-Aug 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The choice between remaining on long term disability or retiring can be difficult for both employers and employees. An uninformed choice can lead to unintended consequences and possible liability for the employer. Relevant points to consider include whether or not disability benefits will end when the recipient begins to receive pension benefits and whether or not the employee can continue to receive health care coverage after retiring. Employers need to review the details of all of their benefit plans so they can give appropriate advice to disabled employees considering retirement. Failure to do so may leave the employee in difficult circumstances.
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Mind Games.
Smith, Brooke; Benefits Canada; v31 no7 pp 29, 31 Jul 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Disability claims for mental disorders are very costly for Canadian businesses. The Mood Disorders Association of Ontario reports that mental illness accounts for 30 percent of all disability claims. Employees suffering from depression are reluctant to use employee assistance plans, mainly because of confidentiality concerns, so employers need to find alternative ways to assist depressed employees. One method is to provide access to information sources that employees can use privately to assess their own health problems using the Internet. Several companies provide links on their intranets to web sites that provide evidence-based medical information, tools for personal screening and assessment and treatment recommendations that employees can download and discuss with their physicians.
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Suffering in Silence.
Foster, Carly; Employee Benefit News Canada; v4 no4 pp 9, 11 Jul-Aug 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : About 20 percent of Canadians will have suffer with mental illness sometime during their lives, and the results account for 35 percent to 40 percent of total employee disability claims or 3.7 percent of payroll. Depression and anxiety are the most common forms of mental illness for employees, and they are often tied to physical ailments such as heart conditions. It is cost effective for employers, particularly managers, to recognize the problem and offer help rather than ignoring it or replacing valued employees. Managers are most often in a position to identify unusual behavior and should approach the employee to work out solutions.
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Developing Disability-Management and Wellness Strategies.
Morandini, Rochelle; Bovett, Monica; Canadian Benefits & Compensation Digest; v25 no3 pp 10-12 Jun 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : A typical 1,000 employee Canadian employer can spend over $3.6 million annually for absence related to disability. Implementing a wellness program can help but must be based on a comprehensive plan addressing employees' specific health issues. That starts with collecting, measuring and analyzing data related to absence, health risk assessments, workers compensation, employee assistance plan use and other factors. Employers can work with disability plan vendors to identify key data and coordinate with workers compensation and other data sources. They can consolidate and maintain the data for calculations and analysis to provide the basis for a data-based disability management program.
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Link To Full Article
If the Future Is Crazy: How to Manage Stress Claims.
Scott, Liz R.; Benefits and Pensions Monitor; v17 no3 pp 56-57 May 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Employers can get a better handle on psychological disability claims by taking the same approach as with traditional physical disability management. Using the same integrated approach, regardless of the cause prompting the claim, best serves the employee and employer and lowers the cost and duration of claims. The disability management program must have a clear system for initiating, reporting and verifying the claim. The employer must assess the requirements and demands of the worker's job. A case manager assists in the transition and supports the employee for a successful return to work.
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Employers Foggy on Accommodation.
Smith, Jeffrey R.; Canadian HR Reporter; v20 no7 pp 23, 29 Apr 9, 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Employers are mandated to accommodate disabled employees up to a point of undue hardship, an unclear boundary. Often employers' failures come about because they do not know they are required to accommodate employee disabilities, including drug and alcohol abuse, which is considered a disability. Court decisions reinforce the need for employers to work with disabled employees to find a suitable arrangement. If the employee is still unwilling to accept reasonable accommodations, the employer may be justified in dismissing the worker.
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Administering Distress.
Gold, Murray; Benefits Canada; v31 no4 p 75 Apr 2007; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The case of Fidler v. Sun Life Assurance Co. of Canada, heard by the British Columbia Supreme Court offers important lessons about aggravated and punitive damages for mental distress. The defendant ended the plaintiff's long term disability benefits based on surveillance video of her activities. The court ruled that terminating damages breached the benefits contract and could reasonably be predicted to result in mental distress. However, the court rejected punitive damages and supported the surveillance as a method to determine actual disability. The decision raises the bar for recovery of punitive damages but should make plan administrators alert to the possibility of damages for mental distress.
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