LTD premium charge to increase by 19% on June pay

One of the most important benefits YUFA members receive is Long Term Disabiltiy (LTD) coverage. Benefits under our plan replace 85% of a members’ after-tax disposable income (up to $8000 per month) in the case of an eligible disability. As a result of an increase in the number of claims in recent years the monthly premium deduction for LTD coverage for members will increase from 1.5% to 1.77%. YUFA’s LTD Plan is fully funded by employee contributions, largely because this allows LTD benefits to be non-taxable. The premium rate is somewhat unpredictable and volatile due to fluctuating claims experience in a relatively small population. For example, in March of 2022 the LTD Plan was in surplus, allowing members to enjoy a premium holiday. If there is another downward trend in claims experience premiums may once again move lower. YUFA will notify members of any changes to premium levels when the Plan is renewed next year.