What are the Canada Pension Plan disability benefits?
Canadian Pension Plan disability benefits (CPP disability or CPPD) function as a partial income replacement for CPP contributors who are unable to work on a regular basis because of a severe and prolonged disability.
There are two types of CPP disability benefits:
- Disability pension: A taxable monthly payment for people who have contributed to CPP and cannot work regularly due to a disability.
- Post-retirement disability benefit: A monthly benefit for people who are disabled and collecting the CPP retirement pension, but didn’t apply for a disability pension within 15 months of their first retirement pension payment.
Do I qualify for CPP disability benefits?
You’re eligible for CPP disability benefits if you:
- are under the age of 65
- have made CPP contributions in four of the past six years, or three of the previous six years if you’ve contributed for at least 25 years
- have a severe and prolonged disability that prevents you from working any job on a regular basis
The Quebec Pension Plan Disability (QPPD) is the Quebec equivalent of the CPPD. The QPPD follows the same eligibility requirements as the CPPD and applies to you if:
- Quebec is the only province you’ve worked in
- you currently live in Quebec and have worked both in Quebec and in another province or territory
- you live abroad and Quebec was your last province of residence
Is there a difference in CPP disability benefits after age 65?
The disability pension automatically converts to a retirement pension when you turn 65. The monthly amount of the retirement pension will be less than your disability one. The post-retirement disability benefit stops when you reach 65, but you can apply for the Old Age Security program when that happens.
How do I apply for CPP disability benefits?
You have to apply for CPPD disability benefits in writing. Fill out the application form (ISP1151) and ask your doctor or nurse to complete the medical report (ISP2519) as soon as you develop a disability or terminal medical condition that prevents you from working. Mail both forms with certified copies of any required documents to your nearest Service Canada office.
It takes about 170 days for the government to assess your application and make a decision. A staff member will contact you if they have questions or require additional information. A medical adjudicator may also ask you to see another doctor for a second medical evaluation.
How much can you receive from CPP disability benefits in 2020?
The average monthly payment from the disability pension in 2020 is $1,001.37 with a maximum of $1,387.66. Your payment is calculated by adding the basic monthly amount with an amount based on your CPP contributions. The 2020 post-retirement disability benefit is $505.79 per month. Your dependent children may also qualify for a children’s benefit if you receive CPPD benefits.
Can I collect ODSP (Ontario Disability Support Program) and CPPD?
You may be eligible for CPP disability benefits if you collect ODSP. However, ODSP may reduce and even revoke their payments if you receive support from CPPD. Contact your provincial social assistance program for more details.
Can I get a loan while on disability?
You can get approved for a loan while collecting disability benefits. Take a deeper look at how you can use your CPP disability benefits to get a cash advance.
Fresh Start Finance serves Canadians facing all types of credit situations with practical advice and credit-building solutions. We also offer quick-and-easy secured and unsecured installment loans to help you take those first steps to a better financial future. Apply today to see how we can help!