YUFA recently negotiated a settlement that resolves a grievance over a long lasting dispute with the Employer about the allocation and disbursement of the professional expense reimbursement (PER) amounts when members go on Long Term Disability (LTD). The settlement allows members on LTD to receive PER for up to five years and submit claims on limited and qualifying expenses for an additional two years.
Members will receive PER during the first three years of LTD. Upon return, the member will receive PER for up to two years for every year on LTD beyond the initial three years plus the balance of the PER at the end of the three years period. During LTD, members can use accumulated funds on their PER for certain expenses. If the funds run out and the member remains on LTD, the employer will reimburse claims for eligible expenses during LTD for up to two additional years.
For instance, a member that goes on LTD for less than three years will see no impact on the allocation of PER while on LTD. A member who remains on LTD for five years would receive PER in each of the first three years. When they return, they would have available two years of PER and the balance of the fund in year three.
A member who remains on LTD for more than five years, for instance, for ten years, would receive PER for the first three years but no PER deposits for the next seven years. During this period, they would be able to make claims on the available funds, which would expire at the end of year eight. In years nine and ten, the employer would reimburse eligible claims. When the member returns to work, PER funds will be made available for the equivalent of two years plus the balance of the PER at the end of year three.
Eligible expenses incurred during LTD must be consistent with the member’s limitations and restrictions as certified by their medical practitioner. For example, eligible expenses may include journal subscriptions and professional licences. Expenses that require the member to perform work that is inconsistent with their LTD limitations, such as conference and travel costs, will not be reimbursed. Normally, members on LTD are not allowed to work and YUFA strongly advises against it.
The settlement protects PER funds for members on LTD and at the same time allows unused money in their PER accounts to flow into existing Funds through the normal mechanisms of the PER account. Each annual PER deposit expires five years later and there is a $9,000 cap on accumulated PER funds in the account. Expired funds or funds in excess of $9,000 are transferred to the Conference Travel Fund and the Library Research Grant Fund. For more information or if you require assistance, please contact YUFA.