Canada Pension Plan – Disability Benefits
Program Overview:
CPP-D is a contribution-tested program, meaning that the program is only available to those who have made contributions to the plan in previous years. The program is administered through the Department of Social Development (formerly HRDC). The fund is compiled from monetary resources from employees, employers, self-employed people and investment income. The Canada Pension Plan Act legislation governs the program. All employees over the age of 18 who earn a salary contribute to CPP, and do so until on the following events occur: you become disabled, you start to collect retirement pension (after age 60, usually around age 65), your 70th birthday, or you pass away. Since it is a program based on your contributions, your eligibility or entitlement is not influenced by any of your liquid or acquired assts. The Quebec Pension Plan is administered in Quebec, but the 2 plans work together to ensure contributions are protected for all contributors.
Qualifying Criteria:
In order to be eligible for CPP-D, you must be between the ages of 18 and 65 years, meet the definition of disability according to CPP legislation, and have made enough contributions to the program. The minimum qualifying period is either four full years of contributing prior to your disability if you have only worked four years, or at least four of the last six years is you have contributed longer. Partial years will be counted and added together. This is called the Minimum Qualifying Period. There are some exceptions to this rule. These may include periods of non-employment to raise children, when you might have been previously collecting CPP-D, or your years of lowest contribution.
Definition of Disability:
The definition of disability requires you to have a mental or physical disability or illness that is both severe and prolonged, which prevents you from pursuing any substantially gainful occupation including your previous occupation. You must meet the criteria for both severe and prolonged. And “any” work means work that is reasonable to your skills, education, training and limitations due to your illness or disability.
Waiting Period:
In order to apply for CPP-D, you must complete and return the CPP application. This application includes: a basic application of personal information, a questionnaire about your health, education and work history, a Consent form, a medical report completed by your physician of choice, and notarized copies of certain identification. It usually takes a minimum of 4 months for your application to be processed and a decision made. Applications that are flagged as terminally ill may be processed in a much shorter time frame. Once approved, you will be sent a ‘Notice of Entitlement’ noting the date the benefits start, your monthly entitlement, and any retroactive payments.
Payment Amount:
The amount you receive is based on a couple of factors, including your age, the amount you have contributed to the plan, and the length of your contributions. The average amount for 2005 was $758.86/month, and the maximum for 2006 is $1031.05/month. Benefits are taxable, and increase according to the annual cost of living index.
Other Benefits:
- Children’s benefit for a child under 18 years old (or between 18-25 years if attending school full-time) who has a disabled parent, $200/month (2006 rate)
- Survivor benefits
- Vocational Rehabilitation Services
- Return-to-work options such as being able to earn up to $4,100 per calendar year before your benefit is re-assessed (2005 rate)
- No medication or dental benefits
How/Why the Benefit might end:
Your benefits will discontinue if you: have regained the capacity to work, reach the age of 65 years, or pass away. Your file may likely be re-assessed to determine your on-going eligibility for the program (see fact sheet “Triggers for a CPP File Review”)
Tips/suggestions:
- Keep copies of your application for CPP-D and note the date you applied
- Be sure that you include all subjective and objective medical information
- Contact the Department of Social Development to complete a ‘Statement of Contributions’ to know how much your pension could be
Contact information:
Government of Canada Income Security Programs
1-800-277-9914 (English)
1-800-277-9915 (French)
www.sdc.gc.ca
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