Hello,
I was just wondering if someone could please let me know the answer to my question.
I will be turning 55 in July. I am able to get a company pension starting at age 55 . Will taking a company pension monthly reduce my monthly CPP disabilty cheque. This would be in Ontario.
Thank you in advance,
Niluma
These questions are very hard to answer without knowing a lot about your situation and the specific type of company pension you have.
There is nothing that will reduce your CPP disability cheque; however, sometime other payors can reduce their payment based on what you are getting from CPP disability.
Assuming it is not a disability pension from your work, then generally speaking there will be no impact on your CPP disability. You can get a full CPP disability payment and your pension payment, unless the pension payment is also for disability.
Thank you David for answering my questions. My company pension will not be reduced in any way and I can start receiving it at age 55. I was just worried that my CPP disability would be reduced while receiving the company pension. I know that you can earn while WORKING up to $5400. and still receive your CPP disability without it being reduced. I will be making over that amount receiving the company pension, so I was worried any amount earned in any way would reduce the CPP. So to clarify any earned income in any way besides Working will not reduce your CPP disability and they cannot cut you off due to income received, obviously only if you are able to go back to work.
Thank you so much for answering my question.
CPP disability makes a distinction between employment income and other types of income (company pensions, passive investments, RRSP withdrawals, etc). CPP Disability focuses on your capacity to work and capacity to earn income from employment. If you have non-disability income from other sources that are not employment, then it will not affect CPP disability.
The only exception is if your income is from other CPP payments, like CPP retirement or CPP survivor pension. There are implications for the CPP payments collectively in that situation. For example, you can draw both CPP disability and CPP retirement. Stick with the disability as long as you qualify. If you get a CPP survivor pension, the the total of both the CPP-D and CPP-S cannot exceed the max allowable CPP-D amount.
Hi David
Is pay in lieu of notice treated in the same manner as severance pay. Specifically, does pay in lieu of notice reduce you CPP-D benefits?
Thanks
Severance pay is a bit of a general term that encompasses many situations, including “pay in lieu of notice”. Pay in lieu of notice is employment income. The employer is simply choosing to pay it out to you in advance rather than continuing to have you show up for work during the notice period. The notice period is the amount of notice an employer or employee must give to end employment.
It would not decrease your CPP disability benefits per se. Generally speaking, CPP disability does not offset income as you see in LTD insurance policies. Rather, with the CPP disability program they care concerned with whether you can perform “gainful employment”, which is defined by regulation as the ability to earn approximately $15,000 (in 2018 dollars).
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.
Hello David
I will be receiving a severeance package from my employer, so if I read it correctly, I must report it, but my cpp d , will not be clawed back the same as an std insurance policy. is this correct David ?
There will only be a claw back because of a severance package on your private/group disability insurance policy benefits if it states that directly in your LTD policy/contract. For example severance is not an item my LTD insurer has any right to.
the severeance is not due to any LTD policy, it is pay in lieu of notice , ( i guess) that I have worked and is owed over the years
Sorry, I read it wrong. I thought you meant your std insurance could reduce your payments because of your severance… I assume you mean short term disability by the acronym std???
no problem, it was the way i worded it i guess.
so david, are you saying , cpp d payments will be impacted if it is a private disability pension ? i think i have a public run pension plan for example Omers , (Ontario Municipal Employees Retirement System ) which is a provincial pension plan for municipal and government workers here in ontario ?
does anybody know if omers is privately run or public government run as a pension plan and would the clawback happen with cpp d?
Each policy is a little bit different so we won’t be able to tell you the answer for your policy. Can you check with HR at your employer?
Hi Johnny, you really should contact your pension plan administrator to get the answer. There are no general rules and they should be able to answer this for you.
Dear Mr. Brannen,
I hope this message finds you well. I am writing to seek clarification regarding the potential impact of receiving a company pension on my CPP disability benefits.
As I approach my 58th birthday in June, I am considering accessing my company pension, which I have been eligible for since turning 55. However, I am uncertain whether opting for the company pension will affect my monthly CPP disability cheque.
I understand that you previously addressed a similar inquiry from Niluma, and I appreciate your insight. However, my situation differs slightly. Given my disability, I have the option to apply for the company pension through a disability application, enabling me to receive 100% of the pension amount.
My specific concern pertains to whether applying for the company pension through the disability route alters the nature of the income received, potentially making it subject to offset from my CPP disability benefits.
I would greatly appreciate any guidance or clarification you can provide on this matter. Thank you for your attention to my inquiry.
Warm regards,
Thanks Mr. Brannen,
David_BrannenDisability Lawyer, Resolute Legal
These questions are very hard to answer without knowing a lot about your situation and the specific type of company pension you have.
There is nothing that will reduce your CPP disability cheque; however, sometime other payors can reduce their payment based on what you are getting from CPP disability.
Assuming it is not a disability pension from your work, then generally speaking there will be no impact on your CPP disability. You can get a full CPP disability payment and your pension payment, unless the pension payment is also for disability.
Thank you David for answering my questions. My company pension will not be reduced in any way and I can start receiving it at age 55. I was just worried that my CPP disability would be reduced while receiving the company pension. I know that you can earn while WORKING up to $5400. and still receive your CPP disability without it being reduced. I will be making over that amount receiving the company pension, so I was worried any amount earned in any way would reduce the CPP. So to clarify any earned income in any way besides Working will not reduce your CPP disability and they cannot cut you off due to income received, obviously only if you are able to go back to work.
Thank you so much for answering my question.
David_BrannenDisability Lawyer, Resolute Legal
1
CPP disability makes a distinction between employment income and other types of income (company pensions, passive investments, RRSP withdrawals, etc). CPP Disability focuses on your capacity to work and capacity to earn income from employment. If you have non-disability income from other sources that are not employment, then it will not affect CPP disability.
The only exception is if your income is from other CPP payments, like CPP retirement or CPP survivor pension. There are implications for the CPP payments collectively in that situation. For example, you can draw both CPP disability and CPP retirement. Stick with the disability as long as you qualify. If you get a CPP survivor pension, the the total of both the CPP-D and CPP-S cannot exceed the max allowable CPP-D amount.
I know it is addressed to David, but having been in same situation I can tell you that there is no offset to CPPD from Disability Pension. I am in receipt of Medical Pension (Disability) and CPPD as well. Also in case you receive LTD - LTD offsets both CPPD and Medical Pension (my LTD Policy, not sure if it is universal, but from what I gather- it is common)
Thanks, Vasilva for your kind support. I hope I get an answer from David just to be sure.
I think my LTD does too, at least they ask if I am receiving a company pension.
CPPD doesn’t care though. 
No, CPP disability does not offset disability benefits from other sources.
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 1-877-917-7050 to speak with a member with our disability claim support team.
Thanks David,
The way you addressed previous similar questions made me worry about applying for the City pension through a disability application as you point out the following: You can get a full CPP disability payment and your pension payment, unless the pension payment is also for disability.