Severance Pay & CPP Disability

I received 26 weeks severance pay from my employer. I am on CPP disability. Is my monthly CPP disability amount reduced by the severance pay? Do I completely lose CPP disability if I receive severance pay?

Not at all! Enjoy the severance. Only a private insurer might want the offset.

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You may need to clarify this with your Service Canada rep. that this is severance and not income from active ongoing hours worked. Sometimes they will just see the tax return info and think it is income from active employment.

David Brannen

Disability Lawyer with Resolute Legal

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