Allowing Insurance company to deduct Retroactive Payment Signing Form 1618 A-B

CPP Disability
1

Hello,
My insurance company has sent me CPPD application package in which there is a form 1618 AB authorizing my insurance company to get the full retroactive payment and also allow service Canada to communicate with my insurance. Is it a must to sign this form?

Would really appreciate some guidance on this.

thanks,

2

David has made a post on this exact topic. Here is the link which should answer your questions:

1 Like
3

thankyou this is really valuable information

1 Like
4

Hi, no you don’t have to sign it or consent for them to receive correspondence from CPPD. I filled out my forms was approved. When I received my retroactive pay, I contacted and send my caseworker the approval notice to inform her. She interned sent it to the appropriate person, and she informed me what I owed to them. I sent them off a cheque.

5

thankyou. Is the retroactive payment only for 11 months max. Its been 2.5 years since i have been disabled but somewhere in the forms I saw that they only pay for max of 11 months

6

Hi Mathew

Yes I believe they only go back 11 months.

At the end of year you will get a income tax slip for the full amount your received including the retro. But the tax slip from the insurance company will offset it.

Hope this helps

Janet

7

thanks and by offset you mean I wont be paying tax on the retro payment since it went straight to the insurance company right?

8

Yeah cuz they have already deducted the tax from it

9

That’s only if your LTD payments were taxable. If the payments were untaxable you might end up with a tax bill for your CPPD. You can ask CRA to split it over the years it was paid for to reduce your tax.