Canada Pension Plan Disability Benefits
Introduction
The Canada Pension Plan (CPP) has been in effect since 1966. It is a national plan based on contributions from workers and employers in Canada. It is best known for its retirement pension, but also provides survivor, death and disability benefits to CPP contributors and their families.
The CPP Disability program is the largest long-term disability insurance program in Canada. Its primary role is to replace a portion of income for CPP contributors who cannot work because of a disability that is both severe and prolonged (as defined by the CPP legislation).
This booklet provides the answers to some of the more frequently asked questions about CPP disability benefits. For more information about this or about other aspects of the Canada Pension Plan, please contact us.
CPP Disability
What is CPP Disability?
CPP Disability is part of the Canada Pension Plan (CPP). It is designed to provide financial assistance to CPP contributors who are unable to work because of a severe and prolonged disability.
Benefits are paid monthly to eligible applicants and their dependent children. The monthly disability benefit payment includes a fixed amount ($388.67 per month in 2005), plus an amount based on how much and for how long the contributor paid into the Plan. Payments are adjusted once a year in January if necessary, to reflect changes in the cost-of-living index. The maximum benefit payable in 2005 is $1,010.23 (the average monthly payment in 2004 was $734.45). The monthly children's benefit is a flat rate that is adjusted annually. In 2005, the children's benefit is $195.96.
How do I qualify for CPP disability benefits?
To qualify you must:
- be under 65,
- have earned a specified minimum amount and contributed to the CPP while working for a minimum number of years, and
- have a severe and prolonged disability as defined by the CPP legislation.
To remain eligible, you must continue to have a disability according to the CPP legislation.
How does the CPP legislation define "disability"?
The CPP defines "disability" as a condition, physical and/or mental, that is "severe and prolonged". "Severe" means that you have a mental or physical disability that regularly stops you from doing any type of work (full-time, part-time or seasonal). "Prolonged" means your disability is likely to be long term, or is likely to result in your death.
Do I need a minimum level of earnings to qualify for CPP disability benefits, and how long do I have to contribute?
You must have a minimum level of earnings to make contributions to the CPP. In 2005, the minimum level of earnings to qualify for disability benefits is $4,100. If your disability (as defined in CPP legislation) began after December 31, 1997, you must have contributed to the CPP in four of the last six years at or above the minimum level of earnings.
What if I have not contributed for enough years?
Normally, this would mean that you would not qualify for CPP disability benefits.
However, you may still qualify if:
- you delayed applying (that is, you had enough years of contributions when you first became disabled and you have been continuously disabled since then, but you don't have enough now);
- your CPP contributions stopped or were reduced because you were raising your children under seven years of age;
- you have obtained enough CPP credits from a former spouse or common-law partner through credit splitting to make you eligible;
- you worked in another country with which Canada has a social security agreement. Your contributions to that country's pension plan, when added to your CPP contributions, may be enough for you to meet the minimum requirement;
- you were medically incapable of applying.
If you need more information, please contact us.
YOU MUST APPLY FOR ALL CPP BENEFITS.
Applying for CPP disability benefits
When should I apply?
You should apply when you develop a serious long-term or terminal medical condition that prevents you from working regularly at your own or any other job.
How do I apply?
You must complete a written application. Contact us for an application kit or visit www.sdc.gc.ca and print a copy. It will tell you what you need to provide so CPP can determine whether you meet the eligibility requirements. It includes:
- application forms for you and your dependent children (see children's benefits);
- a questionnaire about your work history and medical condition;
- a medical report to be completed by your doctor. If you have more than one doctor, choose the one who knows the most about your main medical problem;
- a consent form to give the CPP permission to get additional information to process your application; and
- a form to complete if you reduced your working hours or stopped working to care for your children under the age of seven.
If you are unable to apply on your own, another person may apply for you.
What happens if I die before applying for CPP disability benefits?
CPP disability benefits cannot be paid unless an application is received before the contributor dies. Surviving spouses or common-law partners and dependent children may, however, apply for a CPP death benefit, survivor's pension, and children's benefit.
I am between 60 and 65. I have stopped working and think I might qualify for disability benefits. What should I apply for: a retirement pension or a disability benefit?
If you think you might qualify for a CPP disability benefit, you may want to apply for both a retirement pension and a disability benefit at the same time. You cannot receive both at the same time, but the assessment process for CPPD applications is more complicated and usually takes longer.
If you have already begun receiving a retirement pension when your application for disability benefits is approved, we will switch you to disability benefits if it is clear to us that your disability started before your retirement pension began.
If you are receiving CPP disability benefits when you turn 65, they will automatically be changed to a retirement pension; you will not need to apply again. You should, however, apply for Old Age Security benefits at this time.
Can I receive a CPP survivor's pension and a CPP disability benefit at the same time?
Yes. If you are eligible for both benefits, they will be combined into a single monthly payment. Please note the following restrictions to benefit amounts:
- The most that can be paid to a person who is eligible for both CPP disability benefits and the CPP survivor's pension is the maximum disability benefit (which is more than the maximum survivor's pension).
- The total amount of the combined CPP benefits paid is adjusted based on the survivor's age and other benefits received.
In other words, you cannot receive a full survivor's pension while also receiving full CPP disability benefits.