What are Canada Pension Plan Disability (CPP-D) Benefits?

CPP-D benefits are monthly payments made to workers who have contributed to the Canada Pension Plan (CPP) and are no longer able to work because of a disability. Dependent or disabled children of CPP-D benefit recipients may also be entitled to a monthly benefit. Both workers who earn over a minimum amount and their employers must contribute to the Canada Pension Plan (CPP).

How Do I Know if I Am Entitled to CPP-D Benefits?

You may be entitled to CPP-D benefits if you meet all of the following criteria:

• You have a "severe" disability that prevents you from working or from regularly earning more than a very minimal amount of income. The disability may be physical or mental in nature, or it may be a combination of both.
• You have a disability that is "prolonged". A prolonged disability means you will be disabled for the foreseeable future, or that the disability is likely to result in death.
• You have made sufficient contributions to the Canada Pension Plan. If you became disabled after 1997, you must have contributed to the Canada Pension Plan in four of the last six years.
• You are under the age of 65.

What If I Have Not Contributed to the CPP in Four of the Last Six Years?

If you have not contributed to the CPP in four of the last six years, but have a disability that is severe and prolonged and are under the age of 65, you may still be entitled to CPP-D benefits. There are some exceptions to the contribution rule that may help you qualify:

• If you were out of the workforce for a period of time because you stayed home to care for your children, who were under the age of 7 years, those time periods may be removed or "dropped out" when calculating your CPP contributions. This is called the "child-rearing drop-out".

• If you delayed applying for CPP-D benefits, but would have had enough years of contributions had you applied when you first became disabled, and if you remained continuously disabled up to the present time, you may still be entitled to benefits. This is called the "late application provision".

• If you are separated or divorced, you may be entitled to a portion of your partner's CPP credits. This is called "credit splitting". Credit splitting could result in additional CPP credits that may help you meet the contribution criteria. Credit splitting can also result in a higher CPP-D benefit.

• If you lived and worked in another country, and contributed to a social security program in that country, you may be entitled to additional contribution credits. Only contributions made to the CPP or Quebec Pension Plan, however, will be used to determine the amount of your benefit.
• If you were physically or mentally unable to apply for CPP-D benefits, the "incapacity provision" may apply. In order for the incapacity provision to apply, you must have been incapable of applying for benefits by yourself and also incapable of asking someone else to apply on your behalf.

What Benefits are Payable if Entitlement is Allowed?

If entitlement to CPP-D benefits is allowed you will receive a monthly benefit until you turn age 65 as long as you continue to have a disability that is severe and prolonged. The amount of your CPP-D benefit is based on your past contributions. Although the maximum CPP-D pension payable in 2006 is $1031.05 per month, most individuals receive a lesser amount. The amount of your CPP-D benefit will be adjusted in January of each year to accommodate increases in the cost of living.

If you are entitled to receive CPP-D benefits, your dependent children may also be entitled to a monthly benefit. A dependent child must be under 18 or between 18 and 25 years of age and attending school full time. Children of CPP-D recipients who are over 18 years of age and disabled may also qualify. The maximum children's benefit in 2006 is $200.47 per month.

Please note that entitlement to CPP-D benefits could impact your entitlement to benefits under the Workplace Safety and Insurance Act, 1997. For more information, please contact a qualified representative.

Are CPP-D Benefits Taxable?

CPP-D benefits are considered to be taxable income. However, you can request that income tax be deducted from your benefits at the source. You can contact Service Canada at 1-800-O-Canada (1-800-622-6232) for a Request For Voluntary Federal Income Tax Deductions, Form ISP-3520 by mail, or visit their website at: http://www.servicecanada.ca/.

How Do I Apply for CPP-D Benefits?

You must apply for CPP-D benefits in writing. The Application for Disability Benefits, Form ISP-1151 is available online or can be mailed to you if you contact Service Canada at 1-800-O-Canada.

What If I Am Denied Benefits?

If you are denied CPP-D benefits, you may wish to request a review of the decision. You have 90 days after receiving the decision to request a reconsideration in writing. If you are unhappy with the outcome of the review, you can appeal the decision to the Office of the Commissioner of Review Tribunals (OCRT). You have 90 days to notify the OCRT in writing of your intent to appeal. If your appeal is denied by the OCRT, you can request a "leave to appeal" to the Pension Appeal Board (PAB) in writing within 90 days of receipt of the OCRT decision. The PAB determines if you will be allowed to pursue an appeal at the next level.

What If I Have More Questions?

For more information on the Canada Pension Plan Disability benefits, call Service Canada toll-free at 1-800-277-9914 for service in English and 1-800-277-9915 for service in French. You can also visit their website at: http://www.servicecanada.gc.ca/.

OWA Fact Sheet 38 - March 2006