CPP Disability - I am receiving a benefit
Once I am receiving a Canada Pension Plan (CPP) disability benefit...
- Will SDC contact me?
- When should I contact SDC?
- Can my kids get benefits?
- Is my benefit taxable?
- Is there any tax relief for me?
- Can I volunteer or go to school?
- Can I work while receiving benefits?
- Will SDC staff review my case occasionally?
- Can my benefit be stopped?
Will SDC contact me?
Yes, Social Development Canada (SDC) will contact you while you are receiving a CPP disability benefit. Approximately two years after you begin receiving your benefit, we will send you a letter with information about CPP disability, other CPP benefits, contact numbers and addresses and a reminder that it is important for you to stay in contact with us.
From time to time, we will mail you a newsletter called "Staying in Touch" that will include information on Canada Pension Plan disability.
When should I contact SDC?
You will need to contact SDC staff to keep us informed of some specific events in your life. This will help us give you better support and service. You need to contact us if:
- you change your mailing address. We want to make sure you receive your T-4 slip for income tax purposes, or other important information when you need it;
- you change your name;
- your payments are deposited directly into your bank account and you change your bank institution or bank account number;
- there is a change in custody and the day-to-day care-taking of your child or children;
- you are thinking of returning to work and wish to learn more about the services SDC has that may help you;
- your medical condition improves to the point where you are able to work regularly;
- you return to work or become self employed and earn more than $4,200 (before taxes) in 2006 (this amount may change);
- you tried to return to work but were not successful;
- you successfully complete any school or retraining programs; and,
- you have any questions about your CPP disability benefit.
Can my kids get benefits?
Yes, your children may be eligible for a children's benefit as long as you are receiving a CPP disability benefit. CPP pays benefits for children if they are:
- under 18 years of age. These benefits are paid to the individual who has the custody and control of the children; or,
- between 18 and 25 years old and attending school on a full-time basis. This benefit is paid directly to the child.
You must fill out an application in writing to obtain a benefit for each child under the age of 18. Every child who is between the ages of 18 and 25 must fill out his or her own application form. Contact us to get an application form. Or you can print the Declaration of Attendance at School or University form.
If the child under 18 is not living with you (change in custody and daily care-taking) please contact us. This is to ensure payment is made to the individual taking care of your child on a daily basis and in order to avoid any overpayment situation.
When a CPP disability benefit is cancelled, any related children's benefits are also cancelled.
If you have a child while you are receiving a CPP disability benefit, please contact us to apply for a children's benefit on his or her behalf.
Is my benefit taxable?
Yes, your CPP disability benefit is taxable. The addition of CPP income could mean that you might owe taxes when you file your next income tax return. If you expect to have to pay tax, you may prefer to have it withheld from your monthly CPP payment rather than having to pay a lump sum at the year's end. Contact SDC if you would like to have the income tax deducted from your monthly CPP payment. Or you can print the Income Tax Deductions Request form. For more information about voluntary tax deductions, visit the Canada Revenue Agency Web site.
Is there any tax relief for me?
The Disability Tax Credit, administered by Canada Revenue Agency, is a non-refundable tax credit that you can claim on your income tax return if you meet its eligibility requirements. This credit can reduce the amount of tax you have to pay. To make a claim, you must complete and file Form T2201, "Disability Tax Credit Certificate." It must be certified by a medical practitioner. The fact that you get a CPP disability benefit does not necessarily mean that you will get Disability Tax Credit. Please note that these programs have different eligibility criteria. Contact the Canada Revenue Agency for more information.
Can I volunteer or go to school?
Yes. Without having any effect on your benefits, you can:
- do volunteer work,
- go back to school to upgrade or complete a degree, or
- take a re-training program.
Please contact us if you have questions on your specific situation.
Can I work while receiving benefits?
Yes, you can earn up to $4,200 (before taxes) in 2006 without informing SDC staff and without losing your benefit. This amount may increase in future years.
A new provision in the Canada Pension Plan called automatic reinstatement provides a financial safety net for clients whose benefits stopped because they returned to regular employment. If your disability recurs within two years and you can't continue working, your CPP disability benefits will be quickly re-started upon request; you will not have to re-qualify.
Automatic reinstatement is available only to clients who inform us when they go back to work and whose benefits were stopped after January 31, 2005.
Once you earn $4,200 from work, you should contact SDC staff about your current work situation and your future work goals. If you can only work once in a while, you may be able to earn more than $4,200 while still receiving your CPP disability benefit payment. It is important to contact us so we can look at your individual situation. People receiving CPP disability benefits and advocates have sent us encouraging stories about people working or re-training while staying on benefits.
If you believe you are able to work on a regular basis, SDC staff may be able to help you achieve your goals through the CPP vocational rehabilitation program. As new technology, medical treatments and skills training are making it possible for some people with disabilities to re-enter the work force, this program is designed to help you return to work.
SDC will pay for vocational rehabilitation if we know that:
- you are receiving a CPP disability benefit;
- you would likely be able to return to work through the assistance of a vocational rehabilitation program;
- you are willing and able to undergo a vocational rehabilitation program;
- your medical condition is stable; and
- your doctor approves.
When you start working regularly, SDC offers a three-month work trial period during which you will continue to receive a CPP disability benefit. After the three-month period, if you continue to work regularly, your CPP disability benefit will stop.
If you have returned to work, but within the next five years your existing disability stops you from working on a regular basis, contact SDC to request a "fast-track" application form in order to re-start your CPP disability benefit relatively quickly.
Will SDC staff review my case occasionally?
Yes. Your case may be reviewed from time to time. This is called a reassessment and is done to ensure that only clients who are eligible for a disability benefit continue to receive it.
If your case is being reassessed, you may be asked to provide current medical and other information to SDC to help complete the reassessment. Because everyone's medical condition and capacity to work is unique, each case is looked at individually.
Once all necessary information has been collected, a decision to continue or stop disability benefits is made. You will always be informed of this decision in writing. When a CPP disability benefit is cancelled, any related children's benefits are also cancelled. Under CPP legislation, anyone receiving a benefit to which they are not entitled must pay back the benefit.
Can my benefit be stopped?
Your CPP disability benefit is not necessarily a permanent benefit. It is intended to partially replace your employment income for as long as your disability stops you from working at any job on a regular basis.
Your disability benefit will automatically change to a CPP retirement pension when you turn 65. The CPP retirement pension amount is lower than the disability benefit, but there are other benefits available to you within the Canadian retirement income system. You may want to contact us ahead of time to see how much your CPP retirement pension will be. This information will help you plan for your retirement.
A CPP disability benefit stops when a CPP disability client dies. In this event, it is important that someone contact SDC. This will ensure that payments are stopped in time to avoid overpayments to the estate, and ensure that surviving family members of the deceased will receive survivors, children's and death benefits to which they are entitled after they have met eligibility requirements.
A CPP disability benefit can be cancelled following a reassessment. When a CPP disability benefit is cancelled, any related children's benefits are also cancelled.
Can I appeal an unfavourable reassessment decision?Yes, you can appeal a reassessment decision to cancel your CPP disability benefit. As with any CPP decision, if you disagree with a decision to cancel your benefits, you have the right to appeal. SDC staff will provide you with the information you need to make an appeal in the decision letter that is sent at the end of the reassessment.
