The National Defense Minister Peter MacKay recently announced improvements to the funding of long term disability insurance for Canadian Forces members.
Over the next four years, the Government of Canada will provide $356 million to cover the full cost of insuring Regular Force members against service-related injuries and illnesses. This will also cover the government share of a premium increase for non-service related injuries.
SISIP Long Term Disability, is an insurance program that is premium-based. It provides an income replacement in combination with other monthly income benefits. These are provided under the Canadian Forces Superannuation Act, the Pension Act and the Canada/Quebec Pension Plan.
The Government of Canada previously funded 85% of premiums for both service-related and non-service-related illness and injuries for Regular Force members. The members paid the remaining 15% through mandatory monthly deductions. The mandatory monthly deductions will continue for the 15% premium for coverage for non-service-related injuries.
The Government of Canada continues to fund 100% of both premiums for Primary Reserve members on Class A or B service. This funding is also provided for Reserve Force members on Class C service.
