How does the Canada Emergency Response Benefit (CERB) Impact STD and LTD payments?

group benefits insurance

It is our understanding that employees receiving STD or LTD benefits from either an Insurer or a Self-Funded STD plan are not eligible to receive the CERB. The Insurers or HRS won’t offset CERB benefits from either STD or LTD payments. If it is learned that an employee approved for STD or LTD benefits has received CERB benefits, the employee will be  advised to notify the government of their entitlement to benefits through their benefits plan. We understand the government will require repayment of CERB benefits if an individual received payment but was not eligible.

How are claims impacted by the Canada Emergency Wage Subsidy (CEWS)?

The CEWS benefit is payable to the employer, not to the employee. If the employer receives this benefit, they continue to pay their employee wages/income (the employers are expected to make their best effort to top up employee salaries to the pre-COVID-19 levels), and the employee continues to receive their income regardless of whether or not they are actually performing work for the employer. The employee does not get laid off.