Top-up Disability Payments

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A payment made by an employer to replace, in whole or in part, periodic payments that an employee or former employee would have received under a group disability insurance contract covering the total or partial loss of income from an office or employment, had the insurer been solvent. The employer makes the payment:

  • to the insolvent insurer or to another insurer (thereby enabling the insurer to make the periodic payments to the employee or former employee); or
  • to the employee or former employee, provided there is an arrangement requiring this individual to reimburse the employer if he or she receives from the insolvent insurer or another insurer any of the periodic payments that were replaced by the employer.

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