When does medical retirement occur?

Treasury Board policy says all leaves without pay due to injury, illness or disability have to be 'resolved' within two years. The employer policy does allow for leaves to be extended in exceptional circumstances. But at two years, the employer notifies the employee that their leave without pay will end either by:

  • going back to work
  • resignation or medical retirement;
  • termination for reasons other than breaches of discipline or misconduct, pursuant to Section 11(2)(g) of the Financial Administration Act.

PSAC considers this practice discriminatory and contrary to the employer’s obligations under the collective agreement and the Canadian Human Rights Act.

If your employer contacts you to push one of these options on you, contact your local PSAC representative.

PSAC argues that leave without pay should be extended for as long as reasonably possible to protect the interests of the disabled employee.

For more about disability insurance in the federal public service see Termination of Employment with Treasury Board Due to Disability.

Employees receiving disability insurance benefits from Sun Life or Long-Term Disability benefits from Industrial Alliance under the Public Service Management Insurance Plan (PSMIP) can continue receiving them after their employment ends for as long as they remain “totally disabled.”

If an employee on either DI or LTD start to receive a medical retirement under the PSSA annuity or CPP/QPP disability benefits, their insurance payments will be ‘offset’ - meaning reduced.

It is your responsibility to avoid overpayment situations if you are receiving an immediate annuity or annual allowance and you start receiving CPP/QPP disabilty benefits. You must advise the Superannuation, Pension Transition and Client Services Sector or risk being made to repay what the government deems excess benefits.



September 19, 2013