What is the Canada Pension Plan (CPP) Disability Benefit
In Canada, the federal government offers the Canada Pension Plan (CPP) disability benefit, which is a monthly payment available to those with a long term mental or physical disability that prevents them from working. The purpose of CPP disability benefit is to help financially support individuals with a disability that prevents them from working and help pay for the additional costs associated with a person’s impairment.
Who is Eligible?
There are three types of CPP disability benefits available: the CPP disability benefit, the CPP post-retirement disability benefit, and the CPP Children’s benefit. To be eligible for the CPP disability benefit, you must:
- be under 65
- have contributed enough to the Canada Pension Plan
- have a mental or physical disability that regularly stops you from doing any type of substantially gainful work
- have a disability that is long-term and of indefinite duration, or is likely to result in death
If you currently receive the CPP retirement pension, you may be eligible for the CPP post-retirement disability benefit if you:
- are 60 to 65
- contributed enough to the CPP
- have a mental or physical disability that regularly stops you from doing any type of substantially gainful work
- have a disability that is long-term and of indefinite duration, or is likely to result in death
- have been receiving the CPP retirement pension for more than 15 months or become disabled after starting to receive the retirement pension
The CPP Children’s benefit is available to those who are the dependent children of someone with a long term disability. Dependent children are eligible for the CPP Children’s benefit if they are:
- under 18, or
- between 18 and 25 and attending school full time
What is the Application Process Like?
To apply for the CPP disability benefit, you must submit your application form and your medical form before receiving a response from the Government of Canada. It is recommended to submit your application form as soon as possible, rather than waiting for your doctor and nurse practitioner to complete your medical report before sending your completed application. Both forms are available as a digital application and as a paper application, both of which you can find on Canada.ca.
When Will I Know if My Application is Approved?
Typically, the Government of Canada will contact you by phone to inform you that your application has been received. After your application has been reviewed, the Government of Canada will contact you by phone and mail regarding their decision. This process can take up to 120 days. If more than 120 days have passed without contact from the Government of Canada, it is recommended to contact them online, by phone, by mail, or in person.
What Do I Do if My Application is Approved?
If your application is approved, your decision letter will include the date and amount of your first monthly payment. However, keep in mind that the CPP disability payments are taxable income and the tax is not automatically deducted each month unless you complete the Request for voluntary Federal Income tax Deductions CPP/OAS (ISP-3520CPP) form, which must be mailed or dropped off at a Service Canada Office.
To find out more about the CPP disability benefit, I recommend you visit the Canada Pension Plan – Overview page on the Canada.ca website, which I have linked here.