Typical CPP-D repayment scenarios


#1

what an excellent forum for the scared/unaware. I’m lucky to have stumbled upon this forum. For those that operate and actively participate here - thank you from all of us who desperately need answers.

I will supply my back-story as a basis for your replies (hopefully without boring you with too many details).

I broke my neck 8 years ago, becoming a C7 quadriplegic. This does not mean I am like Christopher Reeve, I am confined to a wheelchair, paralyzed from the chest down but can still move my arms although my hands are fairly gimpy. I had been an auto mechanic prior to my injury (at age 32). After losing the use of my legs I struggled maintaining a reason to live. As time went by my outlook improved, although my medical condition did not. I had been blessed to have excellent help after injury in regards to getting things in order to receive insurance & CPP-D benefits. With my finances relatively secure I was able to stick my head in the sand and focus on finding some purpose to my new life. I re-educated at my own expense, learning computer drafting.

Although not initially finding employment I kept on trucking and eventually landed a great job, albeit in the oilfield which has been and still is in a down-turn. I worry considerably about the future - whether the job will last and if I will be able to last the job, being my first real employment since being disabled.

With that in mind I opted not to let CPP know I had returned to work (hence my username); continuing to collect the monthly $1000 on top of my $60k annual salary.
After filing my taxes last week, CRA has made contact in regards to what the hell I think I am doing. I am not surprised nor the least bit dismayed - I played with fire and am about to get burned.

So apparently I won the bet, my job has lasted but now it seems I will be faced with paying back 18 months of benefits. My thinking was that I did not want to give up my CPP-D and then lose my job and have to jump through all the hoops to re-apply. I realize they do not need to hear that, I am planning on admitting all wrong-doing and facing whatever they deem fit.

In the literature sent out it says re-payment options can be worked out. As long as I co-operate is it unreasonable to think $1000 per month until its paid back is too little? What would the interest rate be? Will they freeze my bank accounts?

I have 3 weeks to respond. I am not looking to fight anything, but am wondering if it be prudent/economical to retain legal council?

Any insight from anyone will be most helpful.


#2

Generally speaking, when there are overpayments like this the person needs to work out a payment plan. CPP overpayments are managed by the Minister of National Revenue AKA Canada Revenue Agency so they are the most powerful collection agent in the Country. They can free bank accounts, garnish wages, etc.


#3

If you can do 1000 then offer 750-and then over pay. Explain your fear truthfully about worrying about not being able to work the long haul. Plead for mercy. You did it-you own it -that will go in your favour.

My thinking was that I did not want to give up my CPP-D and then lose my job and have to jump through all the hoops to re-apply. I realize they do not need to hear that, I am planning on admitting all wrong-doing and facing whatever they deem fit.

You have a compelling story-truth has a tone. Good luck.


#4

Yes CRA can garnish freeze your bank accounts without a court order-so make a payment plan that you can afford to avoid this


#5

Just call CRA to discuss the options. They are quite friendly and usually try to work things out with you. Don’t be scared.