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What is the Canada Pension Plan disability benefit?The Canada Pension Plan (CPP) disability benefit is a monthly payment. It is available to people who contributed recently to the Canada Pension Plan while they worked, and then became unable to work at any job on a regular basis because of a disability. The primary purpose is to replace a portion of employment earnings for people who recently paid into the CPP. There are also benefits for children if at least one parent qualifies for the CPP disability benefit. A CPP disability benefit is not approved on the basis of which disability or disease you have, but on how the medical condition and its treatment affect your ability to work at any job on a regular basis. What do we mean by "disability"? There is no common definition of "disability" in Canada. If you qualify for disability benefits from other government programs, or private insurers, this is not a guarantee that you'll qualify for a CPP disability benefit. The CPP definition states that a disability has to be both "severe" and "prolonged", and must prevent you from being able to work at any job on a regular basis. We can only consider you eligible for the CPP disability benefit if our medical adjudicators decide that, based on your application and supporting documentation, your disability is both "severe and prolonged". The law defines a severe disability as one which prevents you from doing your former job, or any other job, on a regular basis. A disability is prolonged, when it is expected to last at least one year or is likely to result in death. Only people who meet all the rules in the legislation can receive a benefit. The CPP disability benefit is taxable. The Plan does not pay short-term benefits, or partial disability benefits. This monthly benefit is not guaranteed for life. Your benefit will stop if your condition improves to the point where you are able to work at any job on a regular basis, or you turn 65, or upon your death. After age 65, the CPP retirement pension amount is less than the CPP disability benefit, but you are also eligible for the Old Age Security and possibly also the Guaranteed Income Supplement. Am I eligible?See if this benefit is for you. Answer yes or no to these three questions:
If you answered 'yes' to all questions, you may be able to get a CPP disability benefit. If you answered 'no' to questions 1, 2 or 3, it is less likely that you will qualify for a benefit, but there may be some exceptions in your case which can help you qualify. Conditions of Eligibility There are two conditions that you must meet.
How do I contribute enough money to the CPP? The costs of the Canada Pension Plan are covered by the contributions paid into the CPP by employees, their employers and self-employed people, and from interest earned on the investment of that money. With very few exceptions, every person in Canada over the age of 18 who earns a salary must pay into the CPP (Québec Pension Plan in Quebec). You and your employer each pay half of the contributions. If you are self-employed, you pay both portions. To be eligible for a CPP disability benefit, you must have made enough CPP contributions in at least four of the last six years that you worked. However, there are exceptions which allow us to examine more of your working years to help you qualify. How much do I have to contribute? If you earn more than $3,500 in a year, you pay a percentage of the money earned, up to a maximum amount ($41,100 in 2005). This qualifies you for retirement benefits. However, to qualify for a disability benefit, you have to have earned an amount higher than $4,100 in 2005 and you have to have made contributions in four of the last six years.
If you are not sure if you have made enough contributions into the CPP, contact us and we will let you know. SDC sends contributors a Statement of Contributions (SOC). If you have not received one, you can make a Statement of Contributions online request. If you have made less than the minimum contribution required, the Canada Revenue Agency (CRA) may have refunded your CPP contributions and this would have been sent to you as part of your income tax refund. The Minimum Qualifying Period, or MQP, is the minimum number of years you need to have contributed to CPP to be eligible for a disability benefit. The current rule is that you must have contributed in four out of the last six years. Also, you have to have made valid contributions in each year, which means you have paid contributions on at least $4,100 in income (for 2005). When you apply for a CPP disability benefit, SDC staff must determine your MQP before they can assess your medical eligibility. Once it is confirmed that you have made the required contributions in four out of the last six years all of your previous contributions are then used to calculate your monthly benefit. How do I apply?The, Application for Disability Benefits The kit contains information and instructions, including:
Use the applications checklist to ensure the application is complete. Applicants who are terminally ill: special procedures Applicants who have a terminal illness will have their disability applications decided on within 48 hours upon receipt of their application. Social Development Canada (SDC) staff give these applications priority to determine eligibility quickly so that benefit payments can start as soon as possible. There may be other SDC benefits (survivor, children's and death benefits) which may assist clients and their families in this situation. How long will I have to wait for a decision?Initial application service standard After you fill out your application kit and send it to us, a member of our SDC staff will call you to explain how your application will be processed, the type of information we need from you, and answer any questions you may have. We may also gather more information from you which will help us determine whether you qualify for a disability benefit. As we process your application, our health professionals may request your medical records from hospitals, doctors and other health care providers, and they may ask you to see another doctor who will evaluate your medical condition. When seeking information from outside sources, we have very little control over how quickly a response is received. These delays can add to the time it takes to process your application. If you would like to know the status of your application while it is being processed, please feel free to contact us. We will telephone you to explain how and why we made the decision on your application before we mail you a letter confirming the decision. The phone call and letter will tell you if your application has been approved and what your appeal rights are. If your application is approved, we will also tell you the date that your benefit begins and the amounts you will receive. How much money would I and my family receive?People receiving a CPP disability benefit in 2004 received, on average, about $749.08 each month. The benefit includes a fixed amount that everyone receives ($388.67 a month for 2005), plus an amount based on how much you contributed to the CPP during your entire working career. The most money you can receive from the disability benefit each month in 2005 is $1,010.23. Every January, there may be an increase to the CPP disability benefit to take into account any increase in the cost of living. Under CPP legislation, your payments start four months after the date SDC determined you were found to be disabled under CPP rules. Your monthly payment will usually arrive in the last three banking days of each month. You can consult the exact payment dates. You may choose to have your benefit direct deposited into your bank account. Your dependent child under 18 years of age, or your child who is between 18 and 25 and who is attending school full time, can receive $195.96 a month in 2005 if you are approved for a disability benefit. Applications for children's benefits are included in the application kit. Your child can only receive a benefit if at least one parent is receiving a CPP disability benefit. It is important for you to know that the CPP disability benefit is taxable. If you prefer, you may ask us to have your income tax deducted each month. The Income Tax Deduction Request CPP provides a benefit to all eligible contributors, even if they also receive disability income from other sources. You may be receiving disability payments from a private insurer or from a provincial social assistance program while CPP is processing your application. These other payments may be adjusted if you are approved for a CPP disability benefit. Contact your insurance company or social assistance program for details relating to your particular case. We do not pay, or have a fund to pay, for any specific expenses such as drug costs, specific devices, etc. There are other resources which may help you. What do I do if I don't agree with CPP's decision?You may request a review if you disagree with our decision that you did not qualify for a disability benefit. Our phone call to you and the letter we send you will give you information on how to request a review of the decision. |
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