When Your Application is Approved

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When Your Application is Approved

How would I receive my CPPD benefit?

The decision letter will state the date and the amount of the first payment. The benefit will be deposited directly to the bank account you provided in your Application.

What is the maximum monthly payment amount?

The average and maximum benefit amount for the year 2022 is as follows. The benefit amount will be calculated based on how much you contributed to the CPP during your work.

Type of benefit Average monthly amount Maximum monthly payment amount (2022)
CPP Disability benefit $1,050.29 $1,457.45
CPP Post-retirement disability benefit $510.85 $524.64
CPP children’s benefit $257.58 $264.53

 

For more information regarding payment, please visit here.

How much do I get when my application is approved?

  • The basic disability benefit is $524.64 (2022) and your approved benefit amount will depend upon how much you contributed to the CPP.  You may also be eligible for additional benefits such as CPP children’s benefit  or CPP Post-Retirement disability benefit
  • The basic formula is [The basic amount] + [Your CPP retirement pension amount x0.75]. For example, if your CPP retirement pension is going to be $1,000, your disability benefit amount will be calculated as follows: 524.64 + (1,000 x 0.75) = 1274.64
  • Understanding how your CPP retirement pension amount is calculated is not easy. You can get an estimate for your pension amount at your My Service Canada Account . If you want to determine the amount of contributions you have made to the CPP, you can check your Statement of Contributions to the Canada Pension Plan online or by contacting CPP.

Would Service Canada pay my benefits retroactively?

  • Service Canada can only go as far as 12 months back from the date when they received your application. The retroactive payment is to cover the period while Service Canada was assessing your application. Therefore, it is important that you apply for the benefits as soon as possible to avoid missing out on the benefits you are entitled to.

Can I work while I am receiving CPPD benefits?

  •  Yes, you can. However, it may impact your benefit depending on how much you make. If you make more than $6400 (before taxes, 2022) a year, Service Canada requires you to report it. If you do not contact them and report that your income is above the stated amount, you might be asked to return the money.
  • This does not mean that Service Canada will stop the payment immediately. They will review if you participate in a ‘substantially gainful occupation’. Your work will not be considered a substantially gainful occupation unless your annual income is more than 12 times the maximum monthly benefit amount. For the year 2022, this amount would be $17,489.40.
  • Service Canada will determine whether you have the ability to go back to work based on your fact situation. If Service Canada determines that you can do gainful work, you may lose the benefits as your eligibility would be revoked.
  • If you wish to go back to work, the CPPD Vocational Rehabilitation Program can help you. It is designed to support CCPD recipients who wishes to go back to work. You can get support such as job training and job search services. You will continue to receive your benefit while you are participating in the rehabilitation program.

What happens to my CPPD benefits when I turn 65?

  • Your CPPD benefits will automatically change to CPP retirement pension in the month when you turn 65. If you are receiving CPP post-retirement disability benefits, the program will also switch to CPP retirement pension.
  • The benefit amount may change once you are switched to the retirement pension program.  It is hard to tell how much the change is going to be as the calculation depends on your contribution. To give you an idea, we prepared a chart based on the information provided by Service Canada.

 

  CPP Disability Benefits CPP Retirement Pension
Maximum Monthly Amount $1,457.45 (2022)

$1,253.59

(2022, for new recipient starting the pension at age 65)

Average Monthly Amount $1,050.29 (October 2021) $702.77 (October, 2021)

 

 

Is CPPD benefit taxable?

  • Yes, your CPPD benefits payments are considered a taxable income. If you want your tax to be deducted monthly automatically, you need to request through your My Service Canada Account or mail a form to Service Canada.

 

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