CPP Disability Benefit Flashcards
What does the CPP disability benefit provide?
Disability benefits for disabled contributors and their dependent children.
Current maximum benefit is $1413.66/month and $257.58/month for dependent children of disabled contributors.
Who is eligible for CPP disability benefits?
Someone who earned at least 10% of the YMPE and contributed at least 4 out of the last 6 years.
If contributed 25 years or more, that person must have contributed 3 of the last 6 years at or above the minimum level of earnings.
Must be disabled under CPP, be under 65 and make an application.
Person must be have a severe and prolonged physical or mental impairment and incapable of working in any job.
What do the benefits consist of?
A flat amount and a 75% variable component. The variable component is 75% of the normal retirement benefit.
What is the waiting period or qualifying period?
4 months.
Payments are also retroactive or can allow for up to one year of back payments.
What is the 2021 maximum disability benefit in 2021?
$1413.66/month
Can an individual receive disability benefits and retirement benefits at the same time?
No. He or she may select either the disability or retirement benefit when they are between the ages of 60 - 64.
The disability benefit is higher than the retirement benefit so it is better to apply for disability benefits.
At age 65, the benefits revert automatically to retirement benefit based on pensionable earnings at time of disability.
