What Happens to Long-Term Benefits at 65

Extended Earnings Replacement Benefit (EERB)

EERB monthly payments end at age 65. If you’re receiving EERB, your monthly payments will stop after the end of the month in which you turn 65.

However, your annuity will be paid out at age 65 (see below for details about annuities).

Permanent Impairment Benefit (PIB)

PIB continues for life. If you’re receiving monthly PIB payments (which happens when your permanent medical impairment rating is 30% or higher), these payments will continue monthly for the rest of your life—they do not stop at age 65.

If your PIB was paid as a lump sum (which happens when your impairment rating is 30% or less), you’ve already received that one-time payment and there are no ongoing monthly payments.

Learn more about how PIB benefits are calculated.

Your Annuity—Retirement Savings from your EERB

What is an annuity?

An annuity is a retirement fund that WCB creates for you while you’re receiving EERB benefits. It’s designed to help replace retirement income that you may have lost because you weren’t able to contribute to a pension or retirement savings in the same way you would have if you’d remained employed after your injury.

How does it work?

While you receive monthly EERB payments, WCB automatically sets aside an additional 5% of your EERB benefit amount into an annuity account. Interest is added to this account regularly based on the Bank of Canada’s Five-Year Guaranteed Investment Certificate rate from the end of the preceding year.

Important: The 5% that goes into your annuity does not come out of your EERB payment—it’s an additional amount that WCB contributes on your behalf.

When do you receive your annuity?

Your annuity is paid out:

After the end of the month in which you turn 65, OR
When your EERB ends (if it ends before you turn 65)

Whichever comes first.

The annuity is usually paid as a lump sum directly to you or your financial institution.

Tracking your annuity

Each year, you’ll receive an Annuity Statement from WCB showing:

The previous value of your annuity
Deposits and interest added during the year
The current value of your annuity
An estimated value on your expected payout date

Note: The estimated payout amount may change if there are changes to your payout date, benefit amount, or interest rates before the annuity is paid.

If you die before receiving your annuity

If you die before your annuity becomes payable:

The accumulated amount (principal plus interest) will be paid to your surviving spouse
If there is no surviving spouse, it will be paid to your dependent children
If there is no spouse or dependent children, the amount goes into the Injured Worker Fund to support future workers

Important: You cannot designate someone else to receive your annuity in writing—the rules above determine who receives it.

Annuities for Survivor Pension recipients

If you’re receiving a Survivor Pension (because a worker died due to a workplace injury that occurred February 1, 1996 or later), you’re also entitled to an annuity. Your annuity will be paid:

At the end of the month in which you turn 65, OR
When your deceased spouse would have turned 65

Whichever is later.

Medical Benefits

Medical benefits continue. If you have a permanent impairment or EERB, your medical benefits related to your workplace injury will continue after you turn 65.

Annuities are Tax-Free

All annuity payments are tax-free.

Questions About Your Annuity?

You cannot borrow against your annuity
Contact your case worker if you have questions about your annuity or annuity statement
Have your claim number ready when you call