Your LTD Calculator
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* The definition of Annual Salary / Earnings used to calculate your LTD benefit can be found on the enrollment site by going to Your Profile > Personal Information > Personal Details > Frozen Benefits Pay. ** The LTD benefit shown does not consider any applicable offsets on account of all-source maximums and other benefits/payments you may receive or are entitled to receive, while on disability. These include payments from CPP/ QPP, workers’ compensation benefits, earnings or payments from IBM, including severance pay, vacation pay, pension earnings etc. This is not an exhaustive list. For more details please refer to the policy document. *** LTD benefits are indexed to the cost of living to a maximum of 5% per year. |
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Your LTD Options
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| LTD Option A | LTD Option B | LTD Option C | |
| Benefit formula | 45% of first $2,500; 40% of next $5,000; 30% of remaining basic monthly earnings |
55% of first $2,500; 45% of next $8,000; 30% of remaining basic monthly earnings |
60% of first $4,000; 50% of next $6,500; 35% of remaining basic monthly earnings |
| Premiums are paid with … | Payroll deductions | Payroll deductions | Payroll deductions |
| Is the benefit indexed (COLA)*? | No | Yes | Yes |
| Is the benefit taxable? | No | No | No |
| Maximum monthly benefit | $10,000 | $15,000 | $20,000 |
| Are statutory deductions required | No | No | No |
* LTD benefits are indexed to the cost of living to a maximum of 5% per year.
How These Amounts Were Calculated
How these amounts are calculated
The LTD amounts are based on the annual Salary amount you entered and the 2025 IBM LTD Plan provisions, effective January 1, 2025.
Any LTD payments will not be subject to income tax because they are purchased with after-tax payroll deductions and not flex dollars. The benefit is paid to you by Desjardins. The LTD amount shown does not take into consideration any applicable offsets, deductions or payments, which may result in a lower payout. For more details please refer to the policy document.
Results provided here are estimates for illustration purposes only. Your actual amounts may vary.About Taxes and Your LTD Options
Because you pay for your LTD premiums through after-tax payroll deductions, you will not pay tax on the LTD benefit you receive.
If you live in Quebec, Manitoba, or Ontario, LTD premiums are subject to provincial sales tax.
Making Your Choice
When thinking about which option is right for you, consider the financial impact of not receiving your regular income. While your commuting and daily costs may decrease, you may have additional expenses associated with any special needs required as a result of your illness or disability.
If you're not sure, then use the Estimate Your Long-term Disability Needs tool on the enrollment site.