Oh interesting. One still contributes to CPP while on CPP-D?
There are no contributions required to CPP while getting CPP disabilty payments.
However, they don’t count the years of $0 of CPP contributions while you are getting CPP disabilty payments. If you are on CPP-D for say 15 years it could mean the difference of your CPP retirement monthly payments at age 65 being $1500 vs $800 had you never been approved for CPP-D (just an estimate for illustrative purposes).
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Thank you Buckets. I had no idea. I’m relatively young so this makes a huge difference. Much appreciated your counsel!
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Yeah, it’s a bit confusing. I was unexpectantly approved for CPP-D so I’m just learning about all the benefits.
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Although they don’t count the $0 years, they don’t even assume the minimum contribution so the longer you get CPP-D the more “behind” you get on contributions.
Your CPP with be lower that your last year of CPP-D.
I seem to recall 70% of your last year of CPP-D.
You would probably also get OAS so maybe it’ll be close.
Hard to predict the further you are away from 65.
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Yeah, it’s a confusing calculation with the flat rate + earning related components.
When the lady who did my CPP-D calculations called to say I’m approved and provided details of my exact payments I asked how will this impact my CPP retirement payments in the future. She said as a general rule of thumb, since I qualified for 99% of the current max CPP-D that will likely translate to getting 99% of what ever the max CPP retirement benefits are when I turn 65.
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