CF SISIP FINANCIAL SERVICES LONG-TERM DISABILITY BENEFITS

1 APRIL 2009

1. CANADIAN FORCES (CF) PERSONNEL SHOULD FAMILIARIZE THEMSELVES WITH THE BENEFITS AND LIMITATIONS OF THEIR SISIP FINANCIAL SERVICES (SISIP FS) LONG-TERM DISABILITY (LTD) COVERAGE AND OF ALL CHANGES TO IT, SUCH AS THE RATE CHANGE THAT FOLLOWS

2. PREMIUM RATE CHANGE. EFFECTIVE MAY 01 2009 RETROACTIVE TO APRIL 01 2009 AND AS A RESULT OF PLAN AMENDMENTS, THE PREMIUM RATE FOR REGULAR FORCE PERSONNEL IS REDUCED FROM 0.209 PERCENT OF MONTHLY SALARY TO 0.171 PERCENT OF MONTHLY SALARY. FOR A CORPORAL EARNING 60,000 DOLLARS PER YEAR, THE MONTHLY PREMIUM FOR SISIP LTD COVERAGE WILL BE REDUCED BY APPROXIMATELY TWO DOLLARS. THE PREMIUM FOR THE RESERVE LTD WILL CONTINUE TO BE PAID 100 PERCENT BY THE GOVERNMENT OF CANADA (GOC)

3. COVERAGE HIGHLIGHTS. COVERAGE IN THE SISIP LTD PLAN IS PROVIDED TO REGULAR FORCE (REG F) PERSONNEL, TO PRIMARY RESERVE (P RES) PERSONNEL ON CLASS A AND B SERVICE, AND TO ALL RESERVE FORCE (RES F) PERSONNEL ON CLASS C SERVICE. PERSONNEL OF THE CANADIAN RANGERS, THE CADET INSTRUCTOR CADRE AND THE SUPPLEMENTARY RESERVE, INCLUDING THOSE ATTACHED TO THE PRIMARY RESERVE LIST, ARE NOT ELIGIBLE FOR THIS COVERAGE EXCEPT WHEN THEY SERVE IN AN ELIGIBLE PRIMARY RESERVE FORCE SUB COMPONENT AS MENTIONED ABOVE

4. GOVERNANCE AND ADMINISTRATION. CF SISIP FS LTD IS A DISABILITY GROUP INSURANCE PLAN GOVERNED AND SPONSORED BY THE TREASURY BOARD OF CANADA. THE CHIEF OF THE DEFENCE STAFF (CDS) IS THE POLICY OWNER, THE PLAN IS ADMINISTERED BY SISIP FS, AND THE INSURER IS MANULIFE FINANCIAL

5. PURPOSE OF THE LTD PLAN. THIS PLAN IS DESIGNED TO PROVIDE REPLACEMENT INCOME PROTECTION AGAINST LONG-TERM DISABILITIES AND TO PREPARE FORMER CF PERSONNEL WHO QUALIFY FOR THE LTD BENEFITS TO OBTAIN GAINFUL EMPLOYMENT IN THE CIVILIAN WORKFORCE THROUGH PARTICIPATION IN THE VOCATIONAL REHABILITATION PROGRAM (VRP)

6. INSURANCE PREMIUMS. THE GOC PAYS THE TOTALITY OF DISLABILITY INSURANCE FOR SERVICE-RELATED ILLNESS AND INJURY FOR ELIGIBLE PERSONNEL OF THE REG F. THE COVERAGE FOR NON SERVICE-RELATED INJURIES AND ILLNESS CONTINUES COST-SHARED, AT 85 PERCENT PAID BY THE GOC, AND 15 PERCENT PAID BY THE SERVICE PERSON. FOR P RES PERSONNEL AND FOR RES F PERSONNEL ON CLASS C SERVICE, THE GOC CONTINUES TO PAY 100 PERCENT OF THE TOTAL PREMIUM

7. PARTICIPATION IN THE LTD PLAN IS COMPULSORY FOR REG F PERSONNEL WHO ENROLLED ON OR AFTER 01 APR 1982. FOR THOSE WHO ENROLLED BEFORE THAT DATE, COVERAGE IS OPTIONAL AND MAY BE REQUESTED BY APPLYING TO SISIP FS. UNDER THE PLAN, REG F PERSONNEL RECEIVE LTD COVERAGE 24 HOURS A DAY, 7 DAYS A WEEK

8. PARTICIPATION IN THE LTD PLAN FOR P RES PERSONNEL IS AS FOLLOWS:

A. FOR P RES PERSONNEL ON CLASS A OR CLASS B RESERVE SERVICE OF 180 DAYS OR LESS, LTD COVERAGE IS AUTOMATIC FOR EACH PERIOD FOR WHICH P RES PERSONNEL ARE ON DUTY. ON DUTY MEANS THAT P RES PERSONNEL ARE AUTHORIZED AND ENTITLED TO PAY DURING THE PERFORMANCE OF P RES SERVICE. NO APPLICATION FORM IS REQUIRED

B. FOR P RES PERSONNEL ON CLASS B RESERVE SERVICE OF MORE THAN 180 DAYS OR RES F PERSONNEL ON CLASS C SERVICE, COVERAGE IS AUTOMATIC DURING THE PERIOD OF SERVICE AND IS DEEMED TO BE 24 HOURS PER DAY, 7 DAYS A WEEK COVERAGE. FORMER PERSONNEL OF THE REG F WHO ARE ANNUITANTS AND SERVING AS P RES PERSONNEL ON CLASS B SERVICE OF MORE THAN 180 DAYS ARE NOT COVERED DURING THEIR MANDATORY 35-DAY BREAK IN SERVICE. NO APPLICATION FORM IS REQUIRED

9. THE SISIP FS LTD INCOME REPLACEMENT BENEFIT IS THE FOLLOWING:

A. FOR REG F PERSONNEL, THE BENEFIT IS 75 PERCENT OF THE MONTHLY SALARY ON THE EFFECTIVE RELEASE DATE, LESS THE DESIGNATED SOURCES OF INCOME IDENTIFIED IN PARA 10

B. FOR RES F PERSONNEL ON CLASS C SERVICE AND P RES PERSONNEL ON CLASS B SERVICE FOR MORE THAN 180 DAYS, THE BENEFIT IS 75 PERCENT OF THE MONTHLY SALARY AT THE TIME THE INJURY OR ILLNESS OCCURRED, LESS THE DESIGNATED SOURCES OF INCOME IDENTIFIED IN PARA 10

C. FOR P RES PERSONNEL ON CLASS A OR CLASS B SERVICE OF 180 DAYS OR LESS, THE GOC PAYS THE PREMIUMS FOR A BENEFIT OF 75 PERCENT OF A DEEMED BASIC SALARY OF 2,000 DOLLARS PER MONTH, LESS THE DESIGNATED SOURCES OF INCOME IDENTIFIED AT PARA 10. ELIGIBLE P RES PERSONNEL MAY REQUEST AN INCREASE IN THEIR PAY COVERAGE FROM 2,000 DOLLARS PER MONTH TO EITHER 3,000 OR 4,000 DOLLARS PER MONTH IF THEY CAN DEMONSTRATE THAT THEIR MILITARY AND CIVILIAN SALARY COMBINED IS AT LEAST EQUAL TO THE AMOUNT OF PAY COVERAGE REQUESTED. PERSONNEL WILL HAVE TO PAY FOR THE ADDITIONAL PREMIUM RESULTING FROM THE INCREASE IN COVERAGE. P RES PERSONNEL CAN APPLY BY SUBMITTING A COMPLETED FORM 21E TO ANY LOCAL SISIP FS OFFICE OR TO SISIP FS IN OTTAWA. FORMS MUST BE SENT BY MAIL BECAUSE ORIGINAL SIGNATURES ARE REQUIRED. FORMS CAN BE OBTAINED BY CALLING 1-800-267-6681 OR BY DOWNLOADING FROM WWW.SISIP.COM

10. OTHER DESIGNATED SOURCES OF INCOME REDUCE THE AMOUNT OF BENEFITS THAT PERSONNEL OF THE REG F AND THE RES F ON CLASS C SERVICE ARE PAYABLE UNDER THE LTD PLAN, SUCH AS: THE MONTHLY INCOME BENEFITS UNDER THE CANADIAN FORCES SUPERANNUATION ACT (CFSA), THE PRIMARY MONTHLY DISABILITY BENEFITS UNDER THE CANADA PENSION PLAN (CPP) OR THE QUEBEC PENSION PLAN (QPP), THE MONTHLY DISABILITY BENEFITS PAYABLE UNDER THE PENSION ACT (PA), INCLUDING RETROACTIVE PAYMENTS AND THE DEPENDENT BENEFITS, AND ANY EMPLOYMENT INCOME. IN ADDITION, FOR P RES PERSONNEL ON CLASS A OR B SERVICE, OTHER DESIGNATED SOURCES OF INCOME INCLUDE THE MONTHLY INCOME BENEFITS PAYABLE UNDER LTD COVERAGE PROVIDED THROUGH ANOTHER EMPLOYER, OR OTHER DISABILITY EMPLOYMENT BENEFITS, SUCH AS WORKERS COMPENSATION, SOME BENEFITS RECEIVED FROM AN AUTOMOBILE INSURANCE, EMPLOYEE PENSION PLAN BENEFITS, AND THE MONTHLY INCOME BENEFITS PAYABLE UNDER THE GOVERNMENT EMPLOYEE COMPENSATION ACT (GECA)

11. FOR ILLNESS OR INJURIES THAT OCCURRED ON OR AFTER 01 DEC 99, ELIGIBLE REG F AND RES F PERSONNEL MEDICALLY RELEASING FROM THE CF ARE ENTITLED TO RECEIVE THE LTD BENEFITS FOR AN INITIAL PERIOD OF 24 MONTHS. AFTER THIS PERIOD, THEY QUALIFY TO RECEIVE LTD BENEFITS UP TO THEIR 65TH BIRTHDAY SO LONG AS THEY REMAIN TOTALLY DISABLED AS DEFINED IN PARA 12. PERSONNEL RELEASED FOR REASONS OTHER THAN MEDICAL WHO BELIEVE THEY QUALIFY FOR LTD BENEFITS HAVE UP TO 120 DAYS AFTER THEIR EFFECTIVE DATE OF RELEASE TO SUBMIT A LTD CLAIM TO SISIP FS OR TO MANULIFE FINANCIAL. PERSONNEL WHO QUALIFY AS DISABLED AND REMAIN TOTALLY SO WILL BE ELIGIBLE TO RECEIVE THE LTD BENEFITS UP TO THEIR 65TH BIRTHDAY. ELIGIBLE CF PERSONNEL WHOSE RELEASE ITEM IS CHANGED UNDER QR AND O 15.01 TO 3(A) OR 3(B) AFTER THEIR RELEASE FROM THE CF WILL BE ELIGIBLE FOR LTD BENEFITS IF THEY ARE TOTALLY DISABLED AND HAVE FILED AN APPLICATION WITHIN 120 DAYS OF THEIR RELEASE. PERSONNEL WHO CANNOT SUBMIT A CLAIM WITHIN THE REQUIRED TIME BECAUSE OF A MEDICAL CONDITION OR AN OPERATIONAL STRESS INJURY (OSI) ARE ASKED TO CONTACT SISIP FS AT 1-800-267-6681 OR MANULIFE FINANCIAL AT 1-800-565-0701

12. THE TERM TOTALLY DISABLED MEANS THAT A SERVICE PERSON HAS BEEN RELEASED FROM THE CF AND THAT THERE IS CLEAR AND OBJECTIVE MEDICAL EVIDENCE THAT CONFIRMS, TO THE SATISFACTION OF THE INSURER, THAT THE INDIVIDUAL IS INCAPACITATED BY AN ACTIVE, MEDICALLY DETERMINABLE PHYSICAL OR MENTAL IMPAIRMENT WHICH PREVENTS THE CF SERVICE PERSON FROM PERFORMING ANY AND EVERY DUTY OF ANY SUBSTANTIALLY GAINFUL OCCUPATION OR EMPLOYMENT FOR WHICH THE CF SERVICE PERSON IS REASONABLY QUALIFIED BY EDUCATION, TRAINING, OR EXPERIENCE

13. EXCEPTIONS AND LIMITATIONS. THE SERVICE PERSON RECEIVES NO LTD COVERAGE IN THE FOLLOWING CASES:

A. AN INJURY SUSTAINED AS A RESULT OF PARTICIPATING IN THE COMMISSION OF A CRIMINAL OFFENCE

B. INTENTIONALLY SELF-INFLICTED INJURY, OR ATTEMPTED SELF-DESTRUCTION OF THE SERVICE PERSON WHETHER SANE OR INSANE

C. AN INJURY OR ILLNESS OCCURRED DURING THE FIRST 12 MONTHS OF COVERAGE AND RESULTING FROM INJURIES OR ILLNESS FOR WHICH THE SERVICE PERSON CONSULTED A PHYSICIAN DURING THE SIX MONTHS IMMEDIATELY PRECEDING THE DATE ON WHICH THE SERVICE PERSON BECAME INSURED UNDER THIS POLICY, AND

D. P RES PERSONNEL ON CLASS A AND B SERVICE AND RES F PERSONNEL ON CLASS C SERVICE TO WHOM AN INJURY OR ILLNESS OCCURRED PRIOR TO 1 DEC 99 AND WHO AT THE TIME DID NOT HAVE CF SISIP FS LTD COVERAGE

14. THE PROVISION OF BENEFITS FOR AN ACCIDENTAL DISMEMBERMENT OR THE LOSS OF SIGHT, HEARING OR SPEECH NOT ATTRIBUTABLE TO MILITARY SERVICE IS AN INTEGRAL PART OF THE CF SISIP FS LTD PLAN. UPON RECEIPT OF PROOF THAT AN INSURED SERVICE PERSON HAS SUFFERED A DISMEMBERMENT WITHIN 365 DAYS OF, AND AS A RESULT OF, AN ACCIDENT AND THAT HE OR SHE HAS BEEN RELEASED FROM THE CF, THE INSURER WILL PAY A MONTHLY INCOME BENEFIT TO THE SERVICE PERSON FOR A FIXED PERIOD, AS PROVIDED IN PARA 15 BELOW, OR UNTIL DEATH, WHICHEVER OCCURS FIRST. THE SERVICE PERSON MUST BE RELEASED WITHIN THREE YEARS OF THE ACCIDENT DATE

15. THE AMOUNT OF THE MONTHLY INCOME BENEFIT FOR DISMEMBERMENT SHALL BE CALCULATED IN ACCORDANCE WITH PARA 9 ABOVE, AND WILL BE PAYABLE AS FOLLOWS:

A. DURING 36 MONTHS FOR LOSS OF BOTH HANDS OR BOTH FEET; LOSS OF ONE HAND AND ONE FOOT; LOSS OF SIGHT OF BOTH EYES; LOSS OF ONE HAND OR ONE FOOT AND SIGHT OF ONE EYE; LOSS OF HEARING OR SPEECH

B. DURING 24 MONTHS FOR LOSS OF ONE HAND OR ONE FOOT

C. DURING 12 MONTHS FOR LOSS OF SIGHT OF ONE EYE OR LOSS OF THUMB AND INDEX FINGER OF THE SAME HAND

16. EXCEPTIONS AND LIMITATIONS. NO ACCIDENTAL DISMEMBERMENT MONTHLY INCOME BENEFITS ARE PAYABLE FOR LOSSES FROM THE FOLLOWING INJURIES

A. DISMEMBERMENT RESULTING FROM PARTICIPATION IN THE COMMISSION OF A CRIMINAL OFFENCE

B. INTENTIONALLY SELF-INFLICTED DISMEMBERMENT OR RESULTING FROM ATTEMPTED SELF-DESTRUCTION, WHETHER SANE OR INSANE

C. RESULTING FROM AN ACCIDENT THAT OCCURRED PRIOR TO COVERAGE UNDER THIS POLICY, IN ADDITION

D. NO BENEFITS ARE PAYABLE IN THE CASE OF A SERVICE PERSON WHO LEFT THE CF VOLUNTARILY OR HAD RETIRED FROM THE CF AT COMPULSORY RETIREMENT AGE. THAT NOTWITHSTANDING, A CLAIMS APPLICATION CAN BE MADE FOR SISIP LTD

17. FOR INJURIES THAT ARE ATTRIBUTABLE TO MILITARY SERVICE AND OCCURRED ON OR AFTER 13 FEB 2003 TO REG F PERSONNEL, RES F PERSONNEL ON CLASS C SERVICE AND P RES PERSONNEL ON CLASS A OR B SERVICE WHO ARE NOT ELIGIBLE FOR THE GENERAL OFFICERS INSURANCE PROGRAM (GOIP) OR THE RES F GOIP, THE FOLLOWING ENTITLEMENT IS AVAILABLE: LUMP-SUM BENEFITS FOR ACCIDENTAL DISMEMBERMENT OR THE LOSS OF SIGHT, HEARING OR SPEECH UNDER THE CF ACCIDENTAL DISMEMBERMENT INSURANCE PLAN (ADIP) POLICY. THIS POLICY IS ALSO ADMINISTERED BY SISIP FS AND YOU WILL FIND INFORMATION ON THIS PLAN AT WWW.SISIP.COM

18. VOCATIONAL REHABILITATION PROGRAM. ONCE ACCEPTED INTO THE SISIP FS LTD PROGRAM, ELIGIBLE PERSONNEL MAY HAVE ACCESS TO THE VRP MENTIONED AT PARA 5. THE OBJECTIVE OF THE VRP IS TO ENHANCE THE EDUCATION, SKILLS, TRAINING AND EXPERIENCE OF FORMER PERSONNEL SO AS TO PREPARE THEM TO OBTAIN GAINFUL EMPLOYMENT IN THE CIVILIAN WORKFORCE. LTD CLAIMANTS WHO HAVE BEEN RELEASED FROM THE CF FOR MEDICAL REASONS CAN RECEIVE A MAXIMUM OF 30 MONTHS VRP, THAT IS UP TO SIX CONSECUTIVE MONTHS BEFORE THE EFFECTIVE DATE OF RELEASE WITH THE APPROVAL OF THE CO, AND 24 CONSECUTIVE MONTHS POST-RELEASE. THE 30-MONTH VRP PERIOD CAN BE EXTENDED IF FORMER PERSONNEL QUALIFY AS TOTALLY DISABLED AT THE END OF THE INITIAL POST-MEDICAL RELEASE 24-MONTH PERIOD

19. MORE INFORMATION ON THE SISIP FS LTD PROGRAM CAN BE FOUND AT WWW.SISIP.COM. QUESTIONS ON THE ABOVE OR ON THE COVERAGE AND BENEFITS APLICABLE ON OR BEFORE THE 30 NOV 99 COMING INTO FORCE OF THE CF SISIP FS LTD CAN BE ADDRESSED TO A LOCAL BASE OR WING SISIP FS OFFICE OR BY CALLING THE NATIONAL OFFICE AT 1-800-267-6681

Top