Canada Pension Disability

CPP Disability is part of the Canada Pension Plan. 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 CPP disability benefit is administered by Social Development Canada (SDC), a federal government department.

The Canada Pension Plan (CPP) disability benefit is available to people who have made enough contributions to the CPP, and whose disability prevents them from working at any job on a regular basis. The disability must be long lasting or likely to result in death. People who qualify for disability benefits from other programs may not qualify for the CPP disability benefit. You must apply for a disability benefit in writing.

The Canada Pension Plan Disability Benefit provides disability pensions to eligible workers who become disabled in a severe and prolonged fashion, and survivor benefits to survivors of workers who die before begin receiving retirement benefits.

The CPP legislation 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.

The first thing that the Minister of Human Resources Development Canada considers when someone applies for any benefit under the Canada Pension Plan is whether that person has contributed enough to CPP to qualify for the benefit they are applying for. That is, the applicant must have contributed enough to CPP to meet either the minimum contribution requirements or the minimum qualifying period (MQP).

If an applicant for disability benefits has not contributed enough to CPP (i.e., they do not meet the MQP), then it does not matter how disabled that person is, he or she will not qualify for disability benefits.

You should apply for the Canada Pension Plan Disability Benefit when you develop a serious long-term or terminal medical condition that prevents you from working regularly at your own or any other job. 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 CPP disability benefit applications usually takes longer.

If an application for disability pension is denied, an appeal can be made for reconsideration, and then to the Canada Pension Plan / Old Age Security Review Tribunals or Pension Appeals Boards (POA).

What is automatic reinstatement?

Automatic reinstatement is a financial safety net for Canada Pension Plan disability beneficiaries who try to return to work. If you are unable to continue working because of the same or a related disability, you can ask to have your benefits automatically restarted without having to go through the usual reapplication process.

Automatic reinstatement covers CPP disability beneficiaries who reported a return to work and began earning enough for their benefits to be stopped as of January 31, 2005, or later. You have up to one year from the month you stop working because of your disability to inform CPP that you would like your benefits reinstated.

Note: Quebec is the only province in Canada that opted out of the CPP. The Quebec Pension Plan, or QPP, is the province of Quebec's own version of the Canada Pension Plan. Almost mirroring the CPP exactly, the QPP is a contributory earnings-related pension plan that pays benefits in the event of the earner becoming disabled, retiring, or dying. Both Quebec and the federal government tax benefits paid from the QPP.

More information on The Government of Canada Pension Plan Disability Benefit

Further Information Regarding Canada Pension Disability

Registered Disability Savings Plan Canada
The Government of Canada has launched an advertising campaign to promote the Registered Disability Savings Plan (RDSP) and its matching grant and bond, which encourage people with disabilities and their families to save for their long-term financial security. The Canada Disability Savings Grant is a matching grant from the Government of Canada paid directly into an RDSP. The Canada Disability Savings Bond is money paid directly into an RDSP to help low and modest-income families save for long‑term financial security.

CIBC Registered Disability Savings Plans RDSP
CIBC is now offering Registered Disability Savings Plans or 'RDSPs' to eligible clients. CIBC has also issued a report from Managing Director of Tax and Estate Planning, Jamie Golombek, outlining RDSP strategies for disabled Canadians and their families. The RDSP is largely modeled after the Registered Education Savings Plan (RESP) with both grant and bond incentive programs.

Tax Tips for Families and Disability Canada
Canadian families will continue to benefit from a $2,038 Child Tax Credit for each child under the age of 18. This will result in a federal tax saving of $305 per child. And if one parent cannot use the entire amount to lower their tax payable, the unused amount can be transferred to a spouse or common-law partner.

Registered Disability Savings Plan RDSP Plans Canada
Canada leads the way with the worlds first Registered Disability Savings Plan an innovative policy attracting international attention. The RDSP is a new vehicle that will assist families in planning for the long-term financial security of our relatives with disabilities. Over time, the RDSP will provide billions of dollars to supplement income, enable home ownership, and enhance quality of life for as many as 700,000 Canadians with disabilities.