CPP Disability and Child Benefit

CPP Disability
1

I am currently receiving STD benefits via Manion Wilkins for 17 weeks since my cancer diagnosis/surgery/treatment in January. I have recently received a letter that this period of coverage will expire shortly and I should apply for EI.

I am not knowledgeable on the procedure or necessity to apply for CPP disability if I will just have to pay it back to my insurance company. I understand the concept of being in a low tax bracket this year. I have already removed some money from my RSP account as I will not be penalized as much this year as if I were earning my full income and am thinking if I apply and receive CPP payments, this may bring my taxable income up too much…?

I have also heard of a child benefit that is also applicable to the CPP disability but am unsure if it would apply to me. I am in a dual income home with two children 13 and 16 years old. Is the child benefit calculated/approved based on total household income or just based on the disabled individual and can this benefit be applied retroactively if I wait until next year when I am back at work or would this not be advised as it may increase my taxable income even more?

2

CPP disability benefit payment amounts are based on your contributions into the program. CPP disability is paid based on your meeting the “recent contribution” requirements and also meeting the definition of disability. It is not based on your household income or financial need. If you qualify for CPP disability, then they will make extra payments for each child you have under age 18 or who ar 18-25 and still in full time school. Visit the “Applying for CPP Disability” section of our website to learn more about what is involved. If there is an overlap of CPP disability payments and long-term disability payments, then yes, in most cases the LTD insurance is entitled to be reimbursed for some of their past payments and also they can reduce your future LTD payment by the same amount you are getting from CPP disability.

3

You can see your contributions to CPP on the service canada website:
http://www.servicecanada.gc.ca/eng/online/mysca.shtml

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