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Annual Earnings Calculation

Regular Full-time Employees

Annual Earnings for STD benefit purposes is your daily rate multiplied by 260.89

Regular Part-time Employees

Annual Earnings for STD benefit purposes is-the actual gross earnings for the last 26 pay periods excluding the final pay period (annualized for periods of employment less than 26 biweekly pay periods) up to a maximum of 120% of your daily rate of pay times 260.89. (revised September 14, 1998)

STD Benefits Start Date

STD payments start from the first day after you stop receiving 100% of earnings from your employer.

To Receive STD Benefits

In order to receive STD benefits, you must complete an Application for STD Benefits and:

• be receiving sick leave benefits from your employer; or
• provide satisfactory medical proof of your disability to the Trustees.

In addition, you must:

• suffer a loss of earnings while disabled;
• be under the regular care of physician; and
• agree to reimburse the Plan for any overpayments (When you complete an application for STD benefits you also agree to reimburse the Plan for any benefit overpayments.)

Note: At any time during a Member's disability period, the Trustees or their agent may request medical proof of disability.

If Your STD Claim is Denied

If your claim for STD benefits is denied, you may appeal the decision by making a written request to the Trustees for their special consideration.

Length of STD Benefit Period

Monthly STD payments continue while disabled for up to 24 months following your date of disability, but not beyond the date:

a) you retire under the Telecommunication Workers Pension Plan; or

b) you reach age 65; or

c) your employment is terminated, whichever occurs first.

If your disability is severe and expected to continue for more than 4 months you should apply for Canada Pension Plan (CPP) disability benefits immediately. Within 6 months of your date of disability, you must apply for CPP disability benefits and provide the Trustees with written proof of your application. If you fail to provide written proof of your CPP disability benefits application within this period, your STD payments will cease.

If You are Receiving CPP Disability Benefits While Receiving STD Benefits

Your STD Benefit from the TWBP will top up the CPP benefits until the end of the 24 month period. If you qualify for CPP Disability Benefits, you should notify the Plan Administration Office immediately.

If Your Disability is Caused by the Fault of a Third Party

STD Benefits are not payable for disabilities caused by the fault of a third party, that is someone from whom you may be seeking monetary compensation (for example, a disability resulting from a motor vehicle accident that was the fault of another person).

If your disability is caused by the fault of a third party a Disability Loan rather than STD benefits may be payable from the Plan. The Trustees may, in their absolute discretion, provide you with a loan pending settlement of your claim against the third party PROVIDED THAT you sign an agreement to reimburse the Trustees of the Plan. The amount of reimbursement is dependent upon the actual amount of your settlement and takes into account your legal expenses and the amounts you may be required to repay to your employer.

If you release a third party of liability, without making a claim for lost wages, you will still be required to reimburse the Trustees. Therefore, in order to avoid your having to repay a loan without the offsetting recovery from the third party at fault, it is extremely important that you advise your adjuster or lawyer of your claim for lost wages at the beginning of any disability caused by the fault of a third party.

STD Overpayments

Overpayments may occur because of your STD benefits or disability loan payments being paid to you while you are awaiting a decision concerning your eligibility for other income benefits to which you may be entitled, for example from Workers Compensation, CPP disability benefits, Telecommunication Workers LTD Plan benefits or recovery from a third party. All overpayments must be repaid to the TWBP immediately after receiving a retroactive benefit from any other source.

STD benefits will not commence being paid while you are on a leave of absence from your employer or if you are either on strike or locked-out by your employer. STD benefits will begin on the date you would normally have returned to work.

If You Return to Work Part-Time or for a Trial Period

Your monthly benefit will be reduced by the days paid from working. The following example is based on a regular full-time employee and all figures are approximate:

a) Member's Annual Earnings (daily rate x 260.89) multiplied by

b) Payment Class/12 equals

c) Maximum Monthly Benefit based on 21.74 days per month less

d) Number of Days Paid from working

Example

Company Short Term Disability 50% benefit

a) Annual Earnings(daily rate $172.49 x 260.89 = $45,000)

Equals

c) Maximum monthly benefit $1,104 based on 21.74 days per month less

d)  Employer reports 5.25 days worked (21.74 days - 5.25 days= 16.49 days on 50% Employer Sick Plan Benefit Plan pays $1104/21.74 x 16.49 = $837

Employer 50% Sick Plan (50% of 16.49 days 172.49) $1,422

Earnings from days worked 5.25 x $172.49 $905

Benefit Plan pays non-taxable benefit of $ 837

a)  Same Cause of Disability - If you are disabled under the Plan, return to work and again become disabled within 90 calendar days following your Return to Work Date as a result of the same cause, it is considered a continuation of the same disability period. STD benefits will start from the time you again become disabled, however, the 24-month period will not restart.

If you return to work for more than 90 calendar days and become disabled it is treated the same as a different cause of disability.

b)  Different Cause of Disability - If you were disabled under the Plan, return to work and again become disabled as a result of a different cause, the subsequent disability is considered a new disability period

c)  STD benefits are not payable under the Plan for disabilities caused by or resulting from:

• Injury or sickness which was intentionally self-inflicted, while sane or insane;
•   Participation in a rebellion, a riot, or disorderly conduct;
•   Participation in a war or by service in the anned forces;
• Flying or air travel, except when flying or travelling in an aircraft for which a certificate of airworthiness has been issued by the appropriate government authority and which is operated by a properly licensed pilot;
• The commission of an offence under the Criminal Code of Canada or another country;
• Non-medical consumption of drugs or alcohol, except that the Trustees may approve a claim for disability benefits if the Member is being treated for chemical dependency or alcoholism; or

Further, no STD benefits are payable while the Member:

• is institutionalized in a penitentiary or jail;
• resides at a place other than his ordinary residence or at a hospital,
• is not under the regular care of a physician