Estimated reading time: 8 minutes
While waiting for Mrs. CBB at her medical appointment, I noticed a flyer on the wall about applying for CPP Disability Benefits.
We’ve already applied for the Disability Tax Credit and Registered Disability Savings Plan, but there’s more.
I wanted to know more about the CPP Disability Benefits since she is deemed disabled.
Today, I will share what I’ve learned and why it’s essential to research all available disability resources in Canada.
Canadian Pension Plan
What is the Canada Pension Plan (CPP)?
The Canada Pension Plan is a plan for self-employed employees and people.
Each worker pays into the plan that gives them a retirement pension when they are old enough.
However, if a worker or someone self-employed becomes disabled, they may receive disability benefits if they can no longer work.
There are also benefits for children, spouses, or common-law partners of CPP contributors who have passed away.
Also, if you are divorced or separated, you may be entitled to a share of the pension contribution of your former spouse or common-law partner.
Paying Taxes On CPP Disability Benefits
Do I have to pay taxes if I receive CPP disability benefits?
Yes, as they are not auto-deducted from your monthly payment.
You can apply to have federal deducted by filling out a form online at your My Service Canada account.
If you do not have taxes deducted automatically, you may be asked to pay quarterly.
What Is The Canada Pension Plan Disability Benefit?
The CPP disability benefit is offered to Canadians who meet the following criteria.
- Under the age of 65
- Has contributed enough to the CPP
- A diagnosed severe and prolonged disability is defined as a mental or physical disability that regularly stops you from doing any substantially gainful work. You have a disability that is long-term and of indefinite duration or is likely to result in death.
Qualifying Medical Conditions For CPP Disability Benefits
No list of disabilities qualifies for the CPP disability benefits as it’s based on severity, duration, and ability to gain regular employment.
Types Of CPP Disability Benefits
When you turn 65, you automatically transfer to the CPP retirement pension instead of the post-retirement disability benefit.
CPP Disability Benefits Eligibility
When am I entitled to collect CPP disability benefits?
| CPP Disability Benefit | Under age 65 | You are already receiving the CPP retirement pension for more than 15 months or becoming disabled after starting to receive the retirement pension. |
|---|---|---|
| CPP Post-Retirement Disability Benefit | From age 60 to 65 | You are already receiving the CPP retirement pension for more than 15 months or becoming disabled after starting to receive the retirement pension. |
CPP Disability Children’s Benefit
A maximum of two children can qualify for the CPP Disability Children’s Benefit, which provides monthly payments to dependent children of disabled or deceased CPP contributors.
The children must be between 18 and 25 attending school full-time to receive the benefit.
There are two types of CPP children’s benefits:
- A disabled contributor’s child’s benefit – a monthly payment for a child of the person receiving a CPP disability benefit
- A surviving child’s benefit – a monthly payment for a child of the deceased contributor. For the benefit to be paid, the deceased contributor must have made sufficient contributions to the CPP.
Working While On CPP Disability Benefits
Am I able to work while collecting CPP disability benefits?
The information below is direct from Service Canada for 2023.
You must contact Service Canada when you begin working and once you have earned $6,600 (before tax) in 2023. Your disability benefits may be impacted by your gross (before tax) earnings:
- If you earn below $6,600 (before tax), this alone should not affect your disability benefits.
- Earning between $6,600 and $18,508.36 (before tax) may show that you are regularly capable of working, which may affect your disability benefits.
- Earning $18,508.36 (before tax) or more demonstrates you are regularly capable of working, and you will likely no longer qualify for disability benefits.
If you delay contacting us when you start making over the allowed amount, you might have to pay some money back.
Are You Disabled?
What proof do you need to claim for the CPP disability benefits?
You should have the support of your doctor, who will provide Service Canada with medical documentation to support your disability.
Applying For CPP Disability Benefits
You must apply for benefits when you develop severe or prolonged disabilities.
Where can I apply for the CPP disability benefits?
Talk to your family doctor to see if applying for the CPP disability benefits suits you.
Your doctor’s support is the first step in applying for the benefit.
Medical Report Application – Doctor
If your doctor supports you, complete the application online or mail a paper version.
Your doctor or nurse practitioner must fill out the application’s medical portion.
Service Canada will reimburse your medical professional up to $85 to complete the application.
If your doctor or nurse practitioner charges more than this amount, the applicant is responsible for the remaining portion.
You must work with your doctor or nurse practitioner to submit 1 of the following forms that apply to your situation:
- Medical report (ISP-2519) (non-terminal illness)
- Terminal Illness Medical Attestation form (ISP-2530B) (terminal illness only)
Prepare Your CPP Disability Application
To apply online, you must register for a My Service Canada Account (MSCA), sign in to your MSCA, and complete the application form.
If you cannot fill out the form online or the paper version, you can have someone fill it out.
Always keep copies of all documents that you submit. This is important for future reference if needed to support your application.
If you are applying by paper, you must complete 1 of the following forms that apply to your situation:
- Application form (ISP-1151) (non-terminal illness)
- Terminal Illness Application form (ISP-2530A) (terminal illness only)
You can have an application kit sent to you by calling Service Canada at 1-800-277-9914, or if using a TTY device, call 1-800-255-4786.
Mail the form or drop it off at a Service Canada office.
What happens if my family doctor does not support me applying for CPP disability benefits?
CPP Benefits Adjudication Process
If you have contributed enough to the Canada Pension Plan, your fill is given to medical specialists, also known as adjudicators, for a medical assessment.
Applications are not assessed based on a medical diagnosis alone or on which disability or disease you have.
Several factors are considered, including:
- Nature and severity of your medical condition
- Impact of the medical condition and treatment on your capacity to work
- The likely course of your condition
- Your age, education, and work history
- The number of hours worked, your ability to attend work regularly, and earnings.
- Your volunteer and educational activities
If you are self-employed, your application will be assessed like those who work for an employer.
Decision: CPP Disability Benefits Application
Where can I check my CPP disability benefits application status?
Once your initial application is received, you will receive a phone call to inform you it has arrived.
Those who apply with a terminal illness receive priority handling over other applications.
Applicants identified with a grave condition on the application and medical form have a process timeline of approximately 30 days.
Otherwise, it can take up to 120 days or four months for a decision to be made on an application.
You can check your status online or contact Service Canada.
Once a decision is made, you will receive a letter in the mail.
How much will my CPP Disability Pension payment be?
The letter will also let the applicant know how much money they will receive and when the benefit will begin.
If you are approved for the Canada Pension Plan Disability benefit, you will receive a monthly payment.
The most you can get is about $1360 monthly, but the average is about $955.
The amount of your disability pension will be set by adding up;
- A base amount of about $500 monthly is the same for everyone getting CPP disability benefits.
- An extra amount depends on your CPP Pension contributions.
Typically the payment falls on the last few days of each month of the year.
Denied CPP Disability Benefits
What options do I have if I’ve been denied CPP disability benefits?
There are options available for anyone who has been denied CPP disability benefits.
- Appeal the decision
- Tribunal Hearing
- Tribunal Appeal
- Legal Aid
- CLEO Steps For Justice Resources
What is the initial appeal deadline?
If you disagree with the decision, you have 90 days or three months to appeal and have your application reviewed.
Service Canada staff not involved with the decision-making process will review your application.
How do I appeal a denied CPP disability benefits application?
If your application is still denied and you disagree, you can contact the Social Security Tribunal to appeal this decision.
The End Of CPP Disability Benefits
As long as your disability stops you from working at any job regularly, the disability benefit will replace some of your employment income.
However, there may be a point where the benefits will stop being paid to the applicant.
Your disability benefit will stop if you:
- You are capable of working regularly.
- No longer disabled
- You turn 65
- Death
- Cancellation of the benefit
Other Available Benefits
You can find all of the following available disability benefits at Canada.ca, which I suggest reading to seek the most up-to-date information.
- Disability Tax Credit
- Registered Disability Savings Plan
- Child Disability Benefit
- Education Fund For Those With Disabilities
- Disability Benefits For Veterans
- CPP Children’s Benefits
- Federal Excise Gasoline Tax Refund Program
CPP Disability Help
If you want CPP Disability Help, read more at Canada.ca or talk to your doctor or financial advisor.
The information provided here is a guideline, not a legal representation of the CPP disability benefits. Always refer to Canada. ca for accurate information.
If you live in Quebec, you would not apply for the disability benefit under the Canada Pension Plan. You can apply for the Quebec Pension Plan disability
Discussion: Have you received CPP Disability Benefits, and how was the process for you?
Please leave your comments below, which may help others seeking information.
Thanks for stopping by,
Mr. CBB
My daughter is on ODSP from age 18 due to her disability from birth. Please ensure readers do their homework when comparing both (just checked it out) because ODSP you receive benefits while CPP you do not. You can get both but to a limited amount like anything.
Yes, thank you Christine for pointing this out to the readers.
I was in a brutal car accident and ended up on ODSP, they encouraged me to apply for the CPP-D. It was a long process, plenty of paperwork, phone calls, appointments and finally a three-person tribunal where one of the men asked me why I didn’t just “go live with my parents”. I asked him why HE didn’t go live with his parents? grrr .. anyway, I think the turning point was me telling them – I am an only child, my father was deceased, I was unmarried, no children and my elderly mother’s family was all in England – I had NO ONE to depend on but myself. He looked down at the table and made a face, I think he realized I needed the security of the CPP-D (not that it should make a difference in determining if a person is eligible or not). All prescriptions, all types of doctors appointments, reports, etc .. they all need to be submitted to help your case. I am also on ODSP for the health benefits – the dental, drugs and glasses, etc. with a $29 payment for diabetes, and must reapply for this every year. Legal Aid was a tremendous help, they sat with me through the tribunal.
Hi Julie,
I’m so sorry to hear about your car accident but happy you’re with us. Thank you for taking the time to share your story. Did you keep a copy of everything you submitted?