All disability plan contracts changing Jan. 1, 2024

All disability plan contracts changing Jan. 1, 2024

Post originally provided by Canada Life

Changes to disability benefits under the Quebec Pension Plan (QPP) are coming into effect on Jan. 1, 2024, for plan members between ages 60 and 65. Retraite Quebec will replace the variable disability portion of their QPP disability benefit with a variable retirement portion. Canada Life has amended our short- and long-term disability contracts to account for the change. The amendment goes into effect on Jan. 1, 2024.

What is the impact?

The legislative amendment has impact only at the member level. It affects benefit payments for members who:

  • Go on disability after Jan. 1, 2024 and,
  • Have previously contributed, or currently contribute, to QPP


Here’s what the change will look like:


As of Jan. 1, 2024

Plan member age:

Under 65 years

60 to under 65 years

The parts of the QPP disability benefit:

  • Fixed disability portion
  • Variable disability portion
  • Fixed disability portion
  • Retirement portion

How Canada Life calculates the benefit

If the plan member also has an approved disability claim with Canada Life, we subtract both parts from the short-term disability and long-term disability benefit we pay.

Plan members will automatically receive the QPP retirement portion unless they opt out.

Canada Life will subtract both parts from the short-term disability and long-term disability benefit even if the plan member opts out of receiving the QPP retirement portion.


Members currently on disability won’t be impacted. When calculating the benefit payments, the contract wording effective on the date of their disability would apply. We won’t offset the QPP retirement portion if the member opts out of receiving it.

Although this is a Quebec legislative change, we’re amending all short-term and long-term disability contracts everywhere. Why? Because sponsors may have members who contribute to QPP currently or who have in the past, regardless of where they’re located. Amending everyone’s contract is the best way to ensure we follow the new legislation.

Why the change?

This exceptional contract update is necessary to address the new legislation. It will help us keep short- and long-term disability coverage sustainable and affordable for sponsors and their members.

Under many plans, long-term disability premiums are paid entirely by the member. Without a contract amendment, they could see a considerable increase in premiums.

How we’ll let sponsors know

We’re sharing this information with sponsors in a direct email on Nov. 1.

For more information

Review a copy of the amendment for more details on the change.

Written by admin



Leave a comment