Have you, or someone you loved, been wondering about the Canada Pension Plan Disability benefit (CPP-D) and how it connects with the Post-Retirement Disability Benefit (PRDB)?
Some people with disabilities, who as a result cannot work, apply for the early CPP retirement pension (regular pension). If they have been receiving their CPP regular pension for longer than 15 months they may no longer be eligible to receive CPP-Disability benefits. However, they can now apply for a new government benefit called the Post-Retirement Disability Benefit.
The Post-Retirement Disability Benefit is a new benefit that came into effect on January 1, 2019. The key here is the 15-month window. Before that date, if the applicant collected their early CPP, more than 15 months, they were Statute Bar. There would be no opportunity to get onto the Canada Pension Plan Disability benefit.
In other words, they had to apply for the Canada Pension Plan Disability before the 15-month period ran out.
This stumbling block has now been removed. Applicants who have made sufficient contributions may be eligible for the PRDB in addition to their retirement pension.
There is no separate application for this benefit. Applicants will still need to complete a CPP disability benefit application. The eligibility criteria remain the same as the disability pension. For example, sufficient CPP contributions and a severe and prolonged disability.
Applicants deemed ineligible for the disability pension due to having been in receipt of CPP retirement pension for more than 15 months will be automatically considered for the Post-Retirement Disability Benefit.
The amount of the Post-Retirement Disability Benefit is the flat-rate component of the disability pension. It is $496.36 for 2019. This amount will be paid until age 65. At 65 the PRDB payment stops and the person continues to receive the retirement pension.
The Post-Retirement Disability Benefit is paid in addition to the CPP retirement pension you are receiving, until the age of 65.
CPP benefits may affect the income you receive from other programs. Some income-tested benefits take your CPP income into account, such as the War Veterans Allowance, EI, the Guaranteed Income Supplement and the Allowance and the Allowance for the Survivor. Other programs to be considered are provincial and territorial social assistance (“welfare”) disability benefits and most workers’ compensation programs. CPP benefits may also affect how much you get from your employer pension or private-sector disability insurance. Brematson & Associates Inc. is the national leader when it comes to federal government disability programs/benefits. Contact us as we are happy to help.