Severance package and CPP D


#1

After 21 years at the same company, and shortly after finding out I was recently diagnosed with a disability, they decided to get rid of me. I received I severance package from them, and am wondering if I can still apply for CPP D? I’ve opted to have my severance paid out in equal payments as opposed to a lump sum. Should I apply for CPP D now? Or is that considered income, even though I’m no longer with the company.


#2

Severance is concidered an income but maybe not for CPP-D purposes. They’ll probably look at your ability to work and earn by performing actual duties of a job. You can always call Service Canada if you in doubt.

Would you be able to share some details? Were you on LTD when you were laid off? And did they offer you a partial severance or the whole amount you accumulated for 21 years? Thanks.


#3

Apply now if your Doctor supports you. It is not income that disqualifies you to collect CPP-D.


#4

It sounds more like a human rights issue if the company failed to try to accommodate your disability.


#5

Generally speaking, it is possible for a person to receive severance payment AND still qualify for CPP disability payments. This is because CPP disability is paid on basis of proving a “severe and prolonged disability”. This definition focuses on your capacity to work (or more specifically the lack thereof). It is not based on passive income you have coming in. The question is when did you lose the capacity to work.


David Brannen

Disability Lawyer with Resolute Legal

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