No CPP on disability benefit payments: Court

Performance of services contract must be examined
By Jeffrey R. Smith
|Canadian Payroll Reporter|Last Updated: 03/02/2011

An Ontario employer has won its appeal of a ruling in which it was ordered to pay pension contributions for disability payments made to employees on leave because they were unable to work.

Hershell Green and Nancy Murphy were both employees at the Toronto Transit Commission (TTC). Green, who had been at the TTC since 1979, became disabled in 2005. Under the collective agreement, the TTC funded long-term disability benefits for unionized employees after other short-term benefits and vacation pay were used up, which kicked in for Green in April 2006.

Murphy, who wasn’t part of the union, became eligible for long-term disability benefits under the TTC’s staff plan after she became disabled and unable to work in 2003. Her benefits began in April 2004.