Offset of Canada or Quebec Pension Plan Disability Benefits
Effective date: December 1, 2016
Application: All claims.
Policy subject: Benefits - General
To establish guidelines for deducting Canada or Quebec Pension Plan (CPP/QPP) Disability Benefits from loss of earnings benefits.
The Workers’ Compensation Board (WCB) establishes its authority under POL 22/2016 to reduce benefits if the customer is receiving Canada or Quebec Pension Plan (CPP/QPP) disability or survivor benefits related to the compensable work injury or death.
- On the first anniversary of the commencement of loss of earnings, 50 per cent of CPP/QPP benefits will be considered as wages in calculating the compensation paid by WCB. Operations staff will use this amount to offset loss of earnings benefits.
- For an injured worker who is receiving CPP/QPP benefits related to the compensable work injury, offset will be applied 12-months after the commencement of their initial loss of earnings and once they qualify for CPP/QPP benefits. The offset will continue to be applied as long as they qualify for CPP/QPP disability benefits because of a work injury.
- For the surviving spouse who is receiving CPP/QPP benefits related to a compensable death, the offset will be applied 12-months after they qualify for WCB spousal benefits.
- Operations staff will not reduce WCB payments without first determining, either by documentation from the Canada or Quebec Pension Plan or a signed declaration from the worker or the worker’s surviving spouse indicating they are actually receiving CPP/QPP benefits, and at what level.
- If a customer is entitled to receive CPP/QPP benefits but is not yet in receipt of them, wage loss benefits will be paid to the worker or the worker’s surviving spouse without offset until the customer receives the CPP/QPP benefits. Customers will be told in advance of the possibility of an overpayment created by retroactive entitlement to CPP/QPP benefits.
- Overpayments created through retroactive CPP/QPP benefit entitlement will be recovered in accordance with PRO 17/2016, Overpayment Recovery – Compensation.
- CPP/QPP benefits are subject to CPI increases determined by Employment and Social Development Canada (ESDC – Service Canada) effective January 1st of each year.
- Operations staff will adjust a customer’s CPP/QPP offset during their annual benefit review, as follows:
- They will apply the percentage increase for the CPP/QPP benefits set January 1 prior to the customer’s annual review, to the customer’s CPP/QPP level that was established at their prior year’s annual review.
- The adjusted offset will be effective on the date the customer’s wage base is indexed based on the annual CPI percentage increase.
- Operations staff will continue to index a customer’s CPP/QPP offset by the annual CPP/QPP percentage increase annually.
- The offset for customers receiving the maximum wage rate will be adjusted annually, even if the maximum wage rate does not increase in a given year. Appendix A – Adjusting CPP/QPP For Customers Receiving the Maximum Wage Rate by Year provides guidelines around adjusting a customer’s CPP/QPP offset if they receive the maximum wage rate.
- If a worker’s or the worker’s surviving spouses CPP/QPP benefits are decreased by the Canada or Quebec Pension Plan, Operations staff will adjust wage loss benefits during annual review to reflect the new CPP/QPP amount.
Indexing When Customer Receives Less than Full Wage Loss Benefits
- Where a worker qualifies for CPP/QPP benefits and WCB has determined they have an earnings capacity which results in them receiving less than full wage loss benefits, Operations staff will prorate the amount of CPP/QPP benefits (see Appendix B for sample calculation).
- If a customer is receiving the maximum wage rate and has an earnings capacity, Operations staff will prorate the amount of CPP/QPP benefits using the applicable year’s maximum weekly wage (see Appendix C for sample calculation).
- Operations staff will not deduct CPP/QPP benefits if the worker or the worker’s surviving spouse is receiving minimum wage loss benefits or actual earnings, if less.
- Partial offset will occur if full offset would reduce wage loss benefits below minimum compensation.
- Operations staff will not include any CPP/QPP benefits payable to, or on behalf of, dependent children when calculating the offset.