This report will focus lights on the Canada Pension Plan for Disabled people in Canada. If you residing in Canada and have any disability at the age of 65 or above, any of your relatives or family members then you can capture much information from this article. You are suggested to stay with the article till the end to know the eligibility criteria of the financial benefit plan and how to achieve it.
Let Us Understand what CPP Disability Benefit is?
This is the financial benefit program initiated by the federal government of Canada to support disabled senior citizens within the country. This is a monthly pension plan that can be availed by eligible CPP contributors who find it challenging to do any work for regular income due to severe and prolonged physical or mental disability. This plan also has been started to reduce the financial burden of disabled people having dependent children. This plan has been planned to indulge three main beneficiaries under the scheme as per their eligibilities including CPP disability pension, CPP disability children’s benefit, and CPP post-retirement disability benefit.
The post-retirement disability benefit under the Canada Pension plan is a sort of additional benefit to the eligible senior citizens of the country who already have been receiving an early retirement pension for more than 15 months. The children’s benefit is provided to individuals having one child or more children dependent on them, who are already receiving the CPP disability benefit. To receive the benefit children must age less than 18 or in case they are attending a school or university the age must not exceed 25.
CPP Disability Benefits: Eligibility
Eligibility criteria set by the government under any program define the criteria that must be met to receive payment. Age, CPP contribution, and disability are the three criteria considered.
Age: The applicant must have the age of 18 and should not be more than 65.
CPP Contribution: The applicant must have contributed for 4 or 3 years of the last 6 years.
Disability: The level of disability must be “severe” and “prolonged”, which means the applicant must have a mental or physical disability for a long period that hinders the working capability of an individual.
People who have past employment status within the country under a social security agreement, who have stayed at home to care for children, or who have separated from their partners, can be eligible for CPP contribution.
The amount provided under the CPP Disability Benefit
The maximum amount paid under the CPP disability pension per month in 2023 is CAD 1,538.67. The amount paid out in the previous year was 1,132 dollars. The Canada Pension Plan disability benefit is calculated as a flat-rate portion plus 75% of your calculated regular pension in the CPP retirement scheme. The flat rate portion in 2023 is CAD 558.74 + 75% of the maximum CPP retirement pension of CAD 1,306.57 (i.e., CAD 1,306*0.75= CAD 979.93), and finally, add the flat-rate amount; CAD 558.74+CAD 979.93= CAD 1,538.67.
In the case of receiving the amount under the children’s disability benefit plan, the calculation goes as: flat rate portion that is CAD 558.74+children’s benefit in 2023, CAD 281.72 monthly. The applicants can even access the authorized portal of Canada and get more information on the terms and conditions, they can estimate the benefits or are free to contact the helpline number at Service Canada. CPP Disability Payment Dates for December 2023 are anticipated on 20 December 2023.
The process to apply for CPP Disability Benefits
CPP disability application may take up to 4 months to process, so if you are eligible and interested in enjoying benefits under the program, then it is suggested to apply as soon as possible. An application needs to be submitted as an ISP-1151 form along with a medical report. Another form ISP-2519 should be filled by a professional doctor or nurse practitioner and the form should be sent to Service Canada. The applicant can access the option of paper application or can apply online through My Service Canada Account.
People who apply online have to complete several formalities like completing, self-attesting, printing, and submitting the form ISP-2502B. In the procedure, Service Canada is authorized to access the personal information of the applicant from the relevant organization. Service Canada holds the responsibility for fees paid during the completion of the medical form. The authorities were compelled to return the amount of 85 dollars for the service. In case the applicant pays more than 85 dollars then even the amount remains the same i.e., CAD 85 above that, the rest amount is paid by the applicant.
In case of any doubt, Canadians can contact the officials and gain more accurate information regarding the CPP Disability Benefit plan. The helpline number to call the Social Security Tribunal is 1-800-277-9914. If your CPP application is rejected, you can ask for reconsideration within 90 days. In case your appeal remains unconsidered, further appeals can be lodged by contacting the officials. The applicants receive the payment for 12 months regularly after applying.
People who contribute to Canada Pension Plan have the option to access the retirement pension at an early age i.e., at the age of 60 but benefits get reduced up to 7.2 percent per year. In the case of taking early CPP retirement, it can be converted to CPP disability if you have not acquired the age of 65 yet, it is not more than 15 months of receiving the CPP retirement pension. The candidate must have a severe and long-term disability and must meet the contributory requirements.