Wind-up of former long-term disability plan

News

The trustees of the former Long Term Disability (LTD) Plan for employees of McGill University are in the process of winding up the trust.  This plan was replaced in 2003 by the current LTD plan.

Background

  • This former LTD Plan was set-up and administered as a trust arrangement; 
  • Contributions to the trust were paid entirely by the employees, and contributions to the trust arrangement ceased in 2003;
  • The current insured LTD plan started in 2003.  The LTD plan was transferred from the trusteed self-insured plan to the current insured plan, effective January 1, 2003.  The current plan is not a trust, and is insured with Industrial Alliance. 
  • The former LTD plan was closed to new claimants effective December 31, 2002;
  • Employees were required to pay a special deficit recovery contribution into the plan during the calendar year 2003.

Current

As all the outstanding claims in the plan have now been settled, the trustees can now wind-up the trust.  There is a surplus in the trust which will be distributed to employees and former employees of McGill University who were members of the LTD plan on December 31, 2003; this is the date when contributions to the plan ceased.   The distribution for active employees, and retirees will be on March 18 (bi-weekly salaried pay frequency), or March 24 (bi-weekly hourly and weekly pay frequencies); the distribution to the former employees is targeted for May 2016.

Frequently Asked Questions

 

Q.    Will the LTD surplus distribution be included on my tax slips?

A.    It is our understanding that the amount of the surplus is non-taxable, therefore, it will not be included as income on your tax slips.


Q.   Is the surplus being shared with the University?

A.   No amount of the surplus is being paid to the University.  The LTD Plan was set up as a trust for exclusive benefit of the members.


Q. Why has it taken this long to distribute the surplus?

A. Procedures to close the trust could only commence once all outstanding claims had been settled. 


Q. What is the relationship to the current LTD Plan?

A.  There is no relationship between the two plans.  The current plan is not set up as a trust.


Q. What if some of the eligible recipients are no longer active employees?

A. Every effort is being made to locate those who are eligible to receive a payment.  After 3 years,

     In accordance with the Unclaimed Property Act, where we are unable to locate an eligible

     member, the Minister of Revenue of Quebec is the provisional administrator of property.


Q. Who are the trustees?

A. The following are the names of the six trustees, who are all employees of McGill University:

  • Mr. Ron Critchley
  • Ms. Lynne B. Gervais
  • Dr. Craig Mandato
  • Mr. Peter Martinek
  • Ms. Kathleen Tobin
  • Dr. Edith Zorychta