Canada Pension Plan Disability

Hi everyone:

My insurance company has agreed that I am permanently and severely disabled and agree to keep my on LTD past the 2 year mark and if I am not mistaken until I am 65. This was after some discussion, reevaluating my physiotherapist discharge report(they hired the physiotherapist) . I also mentioned that I Applied for CPPD. They said I need to fill out forms for Insurance Co to communication with Service Cda and to set up automtic repayment of LTD to them. As well as annual commication with Service Cda. About my disability.
Before I sign the “Irrevocable consent to deduct and pay the insurer” papers giving the insurance co. Permission for direct repayment, I want to know if this would be wise? Should I get the large retroactive payment sent to me and I repay them insurer back? And how much would the insurer be paid back?. I read on Service Cda website CPPD only go back 11 months in retroactive pay. But, is this full payment or is this just the difference between what I get from CPPD and the LTD payment.
I also received a letter stating they are keeping me on LTD and that they want me to apply for CPPD. In doing so, once I am approved or disapproved for CPPD, I am to let then know and they will dock my LTD payment, dollar for dollar each month, If Approved. . Meaning I still`
have the same income just from 2 providers.
2 more questions.
1.Will CPPD affect my disability tax credit, if approved?
My insurer realizes that I am trying to get back to my employer with my restrictions. I have worked there for 25 years and have many benefits. And it is difficult to walk away. And the insurer said if they do offer me some accomadated position, to let the insurer know. This will likely be impossible. (They had trouble accommodating me for the 2 years leading up to going off) I hope to get a severence or ask them to keep my benefits until 65. Do you have any input on this?

Thank you for listening. Cathy

Blockquote

I don’t know why they need annual communication.
I signed it but I don’t know if it is wise.
The insurance company will tell you how much you owe for back payments after you show them the letter from Service Canada.
When the insurance company asked me to apply for CPPD, I had already applied but a month later the insurance company started estimating and deducting the CPPD I didn’t get yet.
I got CPPD a month later so there was only a month of reduced CPPD because I applied early.

Some people do that.

I think it is 12 months from when you applied.
I don’t know though.
Full payment.

CPPD is taxable, LTD may not be.
It won’t affect the DTC except you may not have enough taxable income to benefit from it.

My plan is to wait and see if my employer fires me (after 2-4 years is common but some employers never do) and if they do then offer to pay the premiums to stay on the extended health plan.
You may get offered a severance but you may not.
Good luck.

I was thinking that if they are unable to accomadate me and there is no job for me then they let me go…or am I wrong?

Not necessarily. I know one employer who has an employee who has been off on disability for over 20 years.

See an article I wrote recently on the Irrevocable Consent. I think it will answer most of your questions.

A few other points. I am very skeptical when I hear someone say the insurance has approved me until age 65. That is almost never true. The policy allows them to continue to evaluate you over time and when new managers come in, they will review all claims. People do get cut off after being approved for years. I don’t know you situation specifically, but I am just advising caution.

The retroactive CPP payment is maximum 12 months of payment back from the date of your application. If you got an LTD payment in any of those months, then the LTD can offset the CPP 100% for any month there was also an LTD payment.

Also see the article I wrote on why you should apply for CPPD even though the insurance company gets all the money.


David Brannen

Disability Lawyer with Resolute Legal

The response posted above is based on the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with a lawyer, fully explain your situation, and allow the lawyer enough time to research the applicable law and facts required to give an adequate opinion. The basic information provided above is intended as a public service only, a full one-on-one discussion with a lawyer should be done before taking any any action. The information posted on this forum is available to the viewing public and is not intended to create a lawyer client relationship with any person. If you want one-on-one advice, please click here to request a free consultation or call toll free 1-877-282-5188 to speak with a member with our disability claim support team.

2 Likes

No, it won’t.

I never signed. They will try to force you. But they can’t do anything about it. There is no law that says you have to.

It’s hard to tell what your employer will do in the future. They may just keep you on the books for years as long as it doesn’t cost them much to pay for the benefits you receive.

They say that to everyone after 2 year mark. But in reality they can re-evaluate your case and cut you off at any time. Try not to give them a reason.