Contributing to CPP after applying for CPP-D?


#1

Say my current estimate on the service canada website of CPP-D is $x and I apply for CPP-D starting months ago.
I’ve contributed to CPP up to now.
Will my CPP-D be based on contributions up to months ago (and do I get refunded recent contributions)?


#2

You do not get refunded any contributions. CPP will drop off some of your lowest years-what you see as the estimate might be a few dollars lower than what you will receive-but that is about it.


#3

There are no refunds. They will consider your overall contributions when calculating your CPP-D payment amount. It is a fairly complex formula. The amount will be very close to what they estimate on the Service Canada website when you look at your contribution history.


#4

Does that mean it will not be $1,400 a month but something else. I only get $168 on regular CPP.


#5

CPP-D is more than CPP but is based on your contributions to CPP.
The service-canada website shows an estimate of what your disability payments will be.
Cafetoto, my guess would $350.


#6

Thanks David.
Since I’m contributing to CPP but I am on short term disability and will be applying for CPP-D from before then it is good to know it is not wasted contributions (although I doubt it makes much difference).


#7

Does it make sense to apply for CPP-D while you are on a short-term disability? Isn’t it too soon?


#8

As soon as you think you would qualify it is best to apply. If you are terminal Or if you have these conditions: AIDS, aneurysm, brain tumor, cancer, carcinoma, cerebral hemorrhage, cerebral infarction, cerebrovascular accident (CVA), coma, end stage amyotrophic lateral sclerosis (ALS), end stage degenerative neuromuscular disorders, glioma, Guillain-Barré syndrome, Hodgkin’s disease, leukemia, liver failure, lymphoma, massive stroke, melanoma, muscular dystrophy, myeloma, neoplastic disease, renal failure, and sarcoma. Then you will likely be approved without to much issue if your Doctor supports you.

If you are not taxed on your short term-long term disability then you may want to delay if possible.


#9

In my husbands case he is considered a Difficult/Complex Case so I assume he will be initially denied. That is why we wanted to wait until he had more scans/tests done, but the Insurer would have estimated if he did not. So we applied and now they say they will still estimate. Now we have to get a statement of claim prepared. Ugg


#10

My short term disability is taxed, I don’t know if my long term will be.
CPP-D is taxed.
CPP-D is also back dated to when I first went on short term disability and therefore I would owe taxes (except I already paid the taxes on the short term disability :-)).

CPP-D is back dated a max of 13 months, right?
If my LTD is not taxed and I can delay applying for CPP-D for over 13 months then I can save a bit of money.

I am just thinking ahead. :slight_smile:


#11

That’s not nice of them. I guess, one of the reasons I didn’t sign the forms is because they wrote in one of the forms that they still have the right to estimate and deduct no matter what.

So far they didn’t deduct anything from my payments but they sent me a new letter asking to sign them.

This time I sent a written request to my insurer asking to provide me with a copy of my insurance policy.


#12

Short-term is taxed as it is paid by your employer as a regular salary. Long-term is not taxed if you paid premiums yourself. But if the premiums were paid by the employer then LTD payments are taxed. CPP-D is taxed.

If you apply for cpp-d in 2018 and receive all 12 month of retroactive payments then you can choose to include them in either 2017 or 2018 taxable year depending on your income. It may help to reduce your taxes. You won’t be able to do that if you start receiving cpp-d in 2017. Then the tax will apply to 2017.


#13

Smart move, if they send it.
I also was reading some of the appeals at the Social Security Tribunal and saw a lot of cases where LTD was cancelled after the first denial of CPP-D-some cases as little as a month or two after.
That is another reason why I don’t want my husband to sign the irrevocable form.


#14

I paid some|all of the LTD premiums but I have no idea if the company paid any.


#15

Do you mean the new letter sent by them?


#16

I mean a copy of the master policy. They may refer you to your employer for the contract.


#17

I called their disability department to see if they received the letter from Service Canada that I had forwarded to them earlier. The lady told me that they did and also reminded me that they had sent me another notice to sign the forms. I asked if I could get a copy of my policy in that regard. She was nice enough to tell me that it was my right to request the policy and she asked me to do it in writing. Actually she encouraged me. I don’t think I would be that brave.

Like you said before it depends on who is on the other side of the line.

I guess it will be my favourite reading material for a while :smiley:


#18

Wow, you have an angel in your corner. We always had a good experience with GWL until they sent my husbands file to their Disability Intervention Services-then due to their admitted mishandling, everything has gone off the rails.
It was such a degrading and damaging experience that my husband wanted to hold them all accountable, but his health was so poor that I did not want the stress of a complaint.
We still do not have the complete Master Policy and GWL advised his employer that they don’t have to let him review it. The policy says otherwise.
Now the irrevocable consent issue.

I am so glad you are having an easier time with your Insurer.


#19

Well then they cannot expect anything from you if they don’t comply themselves. Did you sign the irrevocable consent?


#20

We refused to sign the irrevocable form as he had already signed an agreement that GWL would continue paying himfull benefits if he applied for CPP-D and would reimburse them within 30 days of receiving the funds and knowing the exact over payment amount. In this agreement it said under his policy he was required to apply and appeal if requested by GWL.

GWL has now said there is no such provision in his policy. The area manager then wrote that signing the irrevocable would give him financial security and that is why Service Canada provided these forms. I pointed out that no where in the legislation or does Service Canada guarantee private/group disability payments for signing the forms.

I told them that I would have my husband file all claims against all parties if his benefits were wrongfully reduced.
So this month they are cutting his benefit in half-and my husband will file his claim.