A group long-term disability (LTD) plan for a company in Alberta typically includes an 'integration' feature. What does this mean for an employee receiving LTD benefits?

Question: A group long-term disability (LTD) plan for a company in Alberta typically includes an 'integration' feature. What does this mean for an employee receiving LTD benefits?

Answer options: ✅ The LTD benefit is reduced by income received from other specified sources, such as CPP disability benefits.

• The LTD benefit is taxable as income regardless of who paid the premiums.
• The LTD benefit combines with critical illness payouts for a larger sum.
• The LTD benefit increases if provincial healthcare benefits are reduced.

Correct answer: The LTD benefit is reduced by income received from other specified sources, such as CPP disability benefits.

Explanation: Integration in group LTD plans means that benefits from other sources, such as Canada Pension Plan (CPP) disability benefits, Workers' Compensation, or other government benefits, will reduce the amount payable by the group LTD plan. This prevents over-insurance.