Meaning of a "Wage Loss Replacement Plan"
5. In the Department's view, a plan to which paragraph
6(1)(f) applies is any arrangement, however it is styled, between an
employer and employees, or between an employer and a group or
association of employees, under which provision is made for
indemnification of an employee, by means of benefits payable on a
periodic basis, if an employee suffers a loss of employment income as a
consequence of sickness, maternity or accident. This arrangement may be
formal in nature, as evidenced by a contract negotiated between an
employer and employees, or it may be informal, arising from an
understanding on the part of the employees, that wage loss replacement
benefits would be made available to them by the employer. Where the
arrangement involves a contract of insurance with an insurance company,
the insurance contract becomes part of the plan but does not constitute
the plan itself.
This is just a bit of the bulletin and for all of the information I found it here: http://www.cra-arc.gc.ca/E/pub/tp/it428/it428-e.html
