What Is A Disability Pension
Canada Pension Plan (CPP) offers disability benefits to citizens of Canada who are disabled and who have made enough contributions to the CPP. Benefits are available for the dependent children of anyone receiving a CPP disability benefit.
In order to qualify for a disability benefit, a disability must be "severe" as well as "prolonged" and should prevent you from being able to work on a regular basis at any job. By severe, it means that you are disabled mentally or physically that stops you from doing any sort of gainful work. While by prolonged, it means your disability is of indefinite duration and long term. When you apply for disability pension, both the "severe" and "prolonged" criteria should be met. Disability does not have a common definition in Canada. Even if you may have qualified for a disability benefit under private insurers or other government programs, you might not qualify for a CPP disability benefit.
Your application for disability pension will be reviewed by medical adjudicators and will be based on supporting documentation and other criteria. These includes-
- You should have a severe and prolonged disability,
- Be under the age of 65
- You should meet the CPP contribution requirements. You must have contributed in the four of the last six years or three of the last six years, if you have contributed for at least 25 years.
If you are eligible for disability benefit as well as a CPP survivor’s benefit, they will be combined into one single monthly payment. The combined amount received will not be greater than the maximum CPP disability benefit. Even if you are receiving disability income from other sources, you will still be eligible to receive the CPP disability benefit.
How Much You Could Receive?
As in 2016, the average monthly CPP disability benefit that a person receives is $933.82 and the maximum monthly amount is $1,290.81. The basic fixed amount for all recipients is $471.43. In addition to the fixed amount you will receive an amount based on how much you have contributed to the CPP during your complete working career. Besides, your dependent children will receive a flat monthly rate of $237.69.
CPP Disability Benefit Or CPP Retirement Pension
You should note that the Canada Pension Plan (CPP) disability benefit is a taxable monthly payment. These benefits are not designed to pay for things like medications and assistive devices. If you are between 60 to 64 years of age and think you may qualify for CPP disability benefit, you can also apply for a CPP retirement pension. While you wait for your CPP disability benefit application to be assessed, you may qualify to receive a retirement pension. Here you should understand that you cannot receive both at the same time. If you are already receiving a CPP retirement pension and your disability benefit application gets approved, your retirement pension will be switched to a disability benefit if-
- You are the age of 65 years
- You were deemed to be disabled before the effective date of your retirement
- You have been receiving your retirement pension for less than 15 months
- You meet the minimum contributory requirements
How And When To Apply?
You should apply for CPP disability pension as soon as you develop a severe and prolonged or terminal medical condition that has hampered you from working regularly. Avoid delay in submitting your application forms. All application for the CPP disability benefit should be in writing. Besides, the date you submit your application is received will affect the date your benefit begins. Before applying, make sure you complete the application, read the General Information and Guide, request the child-rearing provision and the children's benefit if you are a parent or guardian and make sure you sign where necessary. Make sure to keep records and photocopies of everything you submit.