Termination – Age 63 and Over, Age 65, and Retirement
Effective date: October 1, 2012
Application: All claims with a commencement of earnings loss date on or after the effective date.
Policy subject: Termination, reduction or suspension of benefits
To establish guidelines for payment of compensation benefits to workers age 63 and over.
Not more than two years, as referenced in Section 71 of The Workers’ Compensation Act, 2013 (the “Act”), means the worker may be entitled to earnings loss compensation for a period of not more than two years following the commencement of earnings loss date.
- Section 68(2) of the Act states that compensation “is payable for as long as the loss of earnings continues, but the compensation is no longer payable when the worker reaches the age of 65.”
- Section 71 of the Act provides special consideration to workers injured at 63 years of age or older by extending earnings loss compensation for a period of not more than two years after the commencement of earnings loss date. This provision may extend the date of termination beyond age 65.
- Section 73(3) and (4) of the Act state:
If compensation is paid to a worker for a period exceeding 24 consecutive months, the board shall set aside an amount equal to 10% of the compensation paid during the 24-month period and of the future compensation to be paid after the expiry of the 24-month period. The amount set aside, together with accrued interest, must be used to provide an annuity for the worker at age 65.
- Section 2(3) of The Saskatchewan Human Rights Code (the “Code”) states that age distinctions “permitted or required by any Act or regulation in force in Saskatchewan” are not in contravention of the Code.
Workers Under Age 63
- Workers under age 63 at the commencement of earnings loss are entitled to earnings loss compensation from the commencement of earnings loss date until:
- The loss of earnings cease, or
- The end of the month in which the injured worker reaches age 65,
- Workers in receipt of benefits for a period exceeding 24 consecutive months are eligible for an annuity to be paid at the age of 65.
Workers Age 63 and Over
- Workers 63 years of age or over at the commencement of earnings loss are entitled to earnings loss compensation from the commencement of earnings loss date until:
- The loss of earnings cease, or
- A period of two years has expired (i.e., compensation will be payable up to and including the day prior to the second anniversary of the commencement of earnings loss date),
- Workers age 63 or over qualifying for compensation benefits under Section 71 are not entitled to annuity benefits under Section 73. To qualify for the annuity, a worker must be absent from the workforce in excess of 24 consecutive months before reaching age 65.
Effects of Retirement
- Retirement benefits (e.g., employer sponsored pension plans, Canada Pension Plan Retirement benefits, Old Age Security Pension, etc.) will not be considered as earnings in the calculation of earnings loss compensation under the Act.
Termination of Compensation Benefits
- When earnings loss compensation benefits are terminated, workers will be advised of the options for alternative support programs.
- The limits outlined in Section 71 exclusively impact the provision of earnings loss compensation. Other entitlements (e.g., medical aid, personal care allowance, independence allowance, etc.) may be extended beyond the two year period.
January 1, 2014. References updated in accordance with The Workers’ Compensation Act, 2013.
September 30, 2013. Policy review completed.
POL 06/2001, Termination – Age 63 & Over, Age 65, and Retirement (effective August 1, 2001 to September 30, 2012).