Approve for CPPD but low amount is shocking

I was recently told by my insurance company to apply for CPPD, I did, and was approved (phew!) but found out I will only receive the bare minimum. I worked full time for a few years but mostly part time my whole life as I was busy raising my children before I left my job because of my disability. I just can’t comprehend how anyone would survive off of not even $500/month? Thank goodness I have my insurance! I’m wondering if anyone else has had this happen? Mostly I’m just grateful because hopefully now my insurance company will see that I truly have a legitimate disability and stop harassing me.

Anyone else receive this sort of strange amount?? I guess if my insurance company ever cut me off I’d be in trouble…as applying for PWD while receiving the CPPD may not be an option, I’m going to call service Canada at some point and ask a few questions just so I know what my options are…

You can always double check with CPPD for the calculation. Don’t forget it will be offset from insurance. Because of the offset at this point I would not worry about it but you should get the amount you were caring for children. It’s an extra form you need to fill out.

Hi, thanks for the response. I did briefly speak with a representative, we didn’t go into depth too much, but I guess the low amount is from a lifetime of mostly part time work…though I did work full time before I filed my disability claim…and I think it’s supposed to be based on that income… it’s confusing but yeah, I’ll likely call again and ask a few more questions so I fully understand the reasoning.

I did get the child provision as well, it was maybe $50/month or so…not much. I guess I was wondering if others were trying to actually live off such low payments, as I’m sure this isn’t just me…I’m not going to stress about it, again, I’m grateful for my insurance, just I’d be in trouble if that ever was cut off for sure!

How much is your CPP disability pension? You imply that it’s less than $500, which is impossible. Are any of your children still under age 18 or are they over age 18 but under age 25 and attending school or university fulltime?

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It literally is less than $500. Both my kids are over 20yrs of age.

I don’t know what happened, but maybe it’s a good thing, that means less taxes to pay?

I applies 3yrs into my disability claim, so maybe that’s why?

Maybe one of the lawyers here would know about this…

I should add neither of my kids attend University.

Hi BRC - Unless you are having taxes withheld or there is some other recovery being made, the CPP disability payment cannot possibly be less than $500. The calculation of a CPP disability pension is comprised of a flat-rate benefit ($510.85 for 2021) plus 75% of your “calculated CPP retirement pension” (which could be fairly small but not less than zero), so the net CPP disability amount cannot be less than the flat-rate amount of $510.85.

Well I guess there must be a mistake made somewhere then because I definitely am receiving under the $500 mark…closer to $400, I don’t know why…I’ll have to take a close look at the paperwork (I haven’t actually received it all yet). So weird!

Thanks for your response!

It’s also possible that it’s going to the insurance company. Most LTD insurance in Canada lets the insurance company deduct CPPD from the amount that they pay you. Which is a little frustrating if your LTD payments weren’t taxable, because CPPD is taxable…

CPP disability monthly payments are never reduced to go to LTD. That can only ever happen to the initial retroactive payment and only if the disability applicant has signed a form authorizing Service Canada to make such a withhold.

CPPD pays me directly, but my LTD insurer deducts the full amount of my CPPD from my LTD payment. Then I pay taxes on the CPPD amount, so that the money in my pocket is reduced by the amount of taxes that I have to pay on the CPPD.

Hi! I am paid directly from CPPD, the amount is deducted from my insurance, I then will pay the taxes on it.

Yeah, it’s a weird situation to be given less than the flat rate…now I’m wondering what is going on! I worked full time, and have contributed over the years…I’ll just have to look into it!

It also makes me wonder why my insurance company isn’t asking the government this question, it benefits them to collect as much money as possible!

Also, maybe the amount I’m getting is minus taxes? That could be…I guess I have a phone call to make!

Thanks for all the insights, this has been really helpful.

I’m with Doug on this, it is impossible to get less than $500 per month for CPP disability. The only way is if there are withholding money to for income taxes or you are getting some type of at-source garnishment from Service Canada or Revenue Canada. Probably is a tax withholding and if so, you may get that money back when you file your taxes.


David Brannen

Disability Lawyer with Resolute Legal

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