WHAT IS CPP (CANADA PENSION PLAN) DISABILITY?

The CPP disability benefit is a program handled by Service Canada that provides financial assistance to previously active contributors to the Canada PensionPlan. It consists of a taxable monthly payment meant to assist an individual dealing with a severe disability (illness or severe injury) that prevents them from returning to the workforce for extended periods of time. This is paid to the individual until they reach the age of 65.

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WHO IS ELIGIBLE FOR CPP DISABILITY BENEFITS?

In order to be eligible for the CPP Disability you must fulfill three basic requirements:

• You were a contributor to the Canada Pension Program
• You are between 18-65 years old
• You have a severe and prolonged injury or medical condition that prevents you from working.

HOW LONG DOES IT USUALLY TAKE TO GET MY CPP DISABILITY APPLICATION APPROVED?

The decision on your eligibility will usually take between 90-120 days to come back to you. At which point you will either start receiving payments soon, or be given the opportunity to ask for reconsideration and to begin an appeal.

‍HOW DO I RECEIVE MY CPP DISABILITY PAYMENTS?

You’ll receive your CPP Disability Benefit payments by mailed cheque, or by direct deposit (if you filled out the appropriate section in the application form).  

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WHEN DOES MY CPP DISABILITY MONTLY PAYMENT COME?

TheCanadian Government releases a benefit payment schedule at the start of each year on their benefit payments calendar. Generally, you will receive monthly payments during the last week of each month.

‍HOW MUCH IS MY CPP DISABILITY BENEFIT?

The amount an individual is able to receive from their CPP Disability Benefit is determined on a case by case basis. This is because their benefit is calculated based on the amount of their overall contribution to the CPP during their time in the Canadian workforce. An individual who has been contributing to the CPP for 20 years is usually eligible for a larger CPP Disability payment than an individual who has only been contributing for a few years.

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WHEN DO CPP DISABILITY BENEFITS EXPIRE?

CPP Disability benefits last for the duration of the disability or until you turn65 (When CPP pension starts). However this is subject to periodic review. The frequency of those reviews will depend on how your disability is classified. It could be as often as every 6 months if your disability has an expected recovery period such as in auto accidents and as long as every three years for chronic illnesses like diabetes.

‍CAN YOU RECEIVE CPP DISABILITY BENEFITS IF YOU HAVE NEVER WORKED?

CPP disability benefits are not available for those who have never contributed to the system.

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CAN YOU WORK WHILE COLLECTING CPP DISABILITY BENEFITS?

While receiving CPP Disability Benefits you may do volunteer work, return to school to enhance your education or complete your degree, and participate in job-retraining courses. You may be able to also do a limited amount of paid work without having to notify Service Canada.

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HOW MUCH CAN I EARN WHILE ON CPP DISABILITY

As of 2021 you are allowed to earn up to $6,100. If you earn more than this amount (before taxes) you will need to notify Service Canada and your benefit status will likely be reviewed. This amount may change in the future, based on economic conditions like inflation.

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CAN I STILL RECEIVE CPP DISABILITY IF I WORKED OVERSEAS?

If you have lived and worked outside of Canada, any contributions you made to a foreign retirement plan may allow you to qualify for CPP disability benefits.

DO I FILE TAXES IF I RECEIVE CANADA PENSION PLAN DISABILITY BENEFITS?

Yes.Receiving CPP Disability benefits does not excuse on from having to file an annual tax return. The payments you receive from the CPP are considered taxable income.

CAN I STILL APPLY FOR CPP DISABILITY IF I WAS IN A COMA?

If you were unable to apply for CPP Disability benefits due to being physically or mentally incapacity you may still qualify for CPP Disability benefits if you request the incapacity provision. within a year of regaining capacity.

HOW DOES DIVORCE AFFECT MY CPP DISABILITY BENEFITS?

CPP eligibility rules allow for a splitting of CPP Disability credits accumulated by both partners during the time they were together. That means the person with the greater accumulated CPP credits must transfer some of their credits to their former partner in order to ‘equalize’ the credit for each partner during the time that they were married.

CAN I RECEIVE MORE THAN ONE CPP BENEFIT?

It is possible that you may qualify for both the CPP survivor’s benefit and the CPP disability benefit. If such is the case both payments will be combined into a single monthly payment. Keep in mind though that the combined amount cannot be more than the maximum CPP disability benefit.

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CAN I ALSO RECEIVE DISABILITY INCOME FROM ANOTHER SOURCE?

It is likely you will still be eligible for CPP benefits even if you are receiving benefits from a private source, such as an insurance company. It is likely that the private source will adjust their payment downward once you start receiving CPP benefits.

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