Top-Up Disability Payments

An amount that is paid by an employer to an employee (or former employee) in the following circumstances:

  • The amount replaces or partly replaces the periodic payments that the employee (or former employee) would have received under a group insurance plan covering full or partial loss of employment income had the insurer not become insolvent.
  • The amount is paid under an arrangement whereby the employee (or former employee) is required to repay the employer in the event that one or more of the periodic payments replaced by the employer are subsequently recovered from the insolvent insurer or another insurer.

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