Drop out provision


My name is Alex. I am currently on CPPD. I was a late applicant to CPPD and I have a question about drop out provisions.

I moved to Canada in 1998 (at age 23), and at age 29, after graduating from university, I started work. Between 2004 and 2009 I contributed to CPP for 6 years, 4 of which were maximum yearly contributions.

In 2009 I became disabled, and went on LTD until present times. However, despite being on LTD, I did not apply to CPPD until 2016, when the LTD insurer directed me to do so.

In 2016, I was accepted in the CPPD program, with an “effective date” of 2016. However, depite having become disabled in 2009, on my CPP Statetement of Contributions, the years between 2010 to 2016 are labelled as “B” (“below basic exemption” )

Given that during the period of time between 2009-2016 I was on LTD, and suffered from the same disability that caused me to be accepted into CPPD, is there a way to have the 2010-2016 period drop out from the CPP calculations? (In other words, I have been continously disabled starting 2009, all the way through present times, despite being on to CPPD only starting 2016.)

Am I correct in assuming that applying a drop out provision to the 2010-2016 period will effectively raise my eventual CPP pension?



This is an incredibly technical question, you may have better luck asking dogger here: Any questions about CPP? - Financial Wisdom Forum

I would phone Service Canada.
Maybe the effective date is based on applying late?

I think so.
I think instead of getting drop outs the new formula is to assume 50% of the maximum contribution.
I heard that but I may have misinterpreted it.
I don’t know if drop outs or 50% is better.
I would ask as Caro suggested.
Post what you find our. :slight_smile:

Good luck.

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Thank you.

I will do so.
I did email a lawyer a quick question and his answer (for free,) was:

short of appealing the legislation to the Supreme Court, I don’t see that you have any chance to get what you’re asking for.

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Appealing to the supreme court doesn’t seem likely. :frowning:
Good luck though.