Memorial University provides eligible employees with a Long Term Disability (LTD) plan through Manulife that is available if an employee is unable to work due to illness or injury for an extended period of time and meets the 60-day qualifying period.

Effective April 1, 2025, Memorial University’s LTD rates increased by 25.8 per cent. The university’s LTD plan, which is mandatory for all eligible employees, is a comprehensive plan that provides employees with 72.67 per cent of their gross earnings while on LTD. Employees pay 100 per cent of the LTD premiums so that their monthly LTD benefit is considered tax-free income. If the employer contributed a portion of the LTD premiums, the monthly LTD benefit would be considered taxable income. With the LTD benefit already reducing income for claimants to 72.67 per cent, having the earnings be nontaxable results in earnings while on disability remaining closer to pre-disability earnings.

LTD rate changes are reviewed every year and are based on Memorial’s past five years’ claims experience. For April 1, 2025, an increase of 25.8 per cent was required by our LTD insurance carrier, Manulife, and is reflective of an increase in LTD claims payouts.