The parties agreed that the claimant was eligible for IRBs, but disagreed on the quantum of the benefit. The applicant received STD and subsequently LTD, as well as CPP disability benefits. Vice Chair Maedel confirmed that these benefits were all taxable and offset the standard weekly IRB payment, as per sections 4(1)(a) and (b) of the SABS. Vice Chair Maedel further found that the insurer was entitled to a repayment of IRBs in the amount of $4,872.90 plus interest, as it was entitled to offset the amount of LTD paid, by the CPP Disability Benefits received in order to calculate the IRB quantum. Otherwise, the claimant could receive overlapping periods of LTD and CPP Disability Benefits, resulting in potential double recovery. With respect to the calculation of IRBs post-65, Vice Chair Maedel held that the quantum is calculated on the base weekly amount prior to deduction for collateral benefits. At age 65, collateral benefits are terminated, and the IRB quantum reverts back to the base weekly amount. This quantum is then adjusted using the ramp down formula set out in section 8(1) of the SABS.
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