Canada Pension Plan Disability (CPPD) benefits

The Canada Pension Plan (CPP) provides disability benefits to people who have made enough contributions to the CPP and who are disabled and cannot work at any job on a regular basis. You may be entitled to both earnings loss benefits under the The Workers’ Compensation Act, 2013 (the Act) and under the Canada Pension Plan Disability (CPPD) program for the same period of entitlement for the same work injury.

If you are approved for CPPD benefits, 50 per cent of these benefits are considered wages that you are capable of earning and are used, therefore, in calculating your earnings loss benefits starting on the date of your first annual benefit review. Because CPPD benefits increase every year, you may see a decrease in your earnings loss benefits.

If you receive earnings loss benefits for more than 24 months in a row, we help you build an annuity program to help supplement retirement income for customers receiving long-term earnings loss benefits by investing 10 per cent of your eligible benefits for as long as you are on compensation.

According to the Service Canada website:

Canada Pension Plan Disability (CPPD) benefits are designed to provide partial income replacement to eligible CPP contributors who are under age 65 with a severe and prolonged disability, as defined in the Canada Pension Plan legislation.

There are two eligibility criteria for the CPPD program.

First, applicants must have made contributions to the program in four of the last six years, with minimum levels of earnings in each of these years, or three of the last six years for those with 25 or more years of contributions.

Second, they must demonstrate that their physical or mental disability prevents them from working regularly at any job that is substantially gainful, and that it is long-term and of indefinite duration or is likely to result in death.

There are two CPPD benefits:

• the disability pension, provided to individuals who meet the eligibility requirements and are not yet receiving a retirement pension, and
• the post-retirement disability benefit, which is provided to individuals who are found to be disabled after the start of their retirement pension.

Additionally, children of CPPD beneficiaries are also eligible for a flat-rate monthly benefit up to the age of 18, or up to age 25 if attending school full-time.

Service Canada's delivery of CPPD benefits involves answering program queries through specialized call centres, via the Internet and at in-person points of service; collecting and processing applications and issuing payments; monitoring decisions and payments for accuracy; administering requests for reconsideration of a decision; conducting client authentication and identification; and preventing, detecting and deterring fraud and abuse.

Online: Service Canada (Government of Canada), The Canada Pension Plan Disability