The History and Progression of the Canada Pension Plan Disability Program

The Canada Pension Plan Disability (CPP-D) program was introduced in 1966. It’s the largest public benefit program for long-term disability in Canada and is managed by Employment and Social Development Canada.

To receive CPP-D benefits, your disability must meet two criteria. The first is that the disability must be considered “severe and prolonged”.  In other words, the disability is severe if the affected person “is incapable of regularly pursuing any substantially gainful occupation”, a disability is prolonged only if it is determined that “the disability is likely to be long, continued and of indefinite duration or is likely to result in death.”

The second criterion used to determine eligibility to receive CPP-D benefits is that sufficient contributions must be made into the Canada Pension Plan retirement pension and the applicant must meet the minimum qualifying period (MQP).  The CPP-D benefit provides partial earnings replacement to someone who has made sufficient contributions to the CPP, meets the MQP and cannot work because of a severe and prolonged disability (mental or physical), as defined in the Canada Pension Plan legislation.

Approved recipients of the CPP-D program receive taxable monthly payments that are based on a flat rate plus an amount reflecting how much they contributed to the program during their entire working careers. In 2013, the maximum monthly benefit was $1,213 while the average monthly benefit was $842, and almost 60 percent of beneficiaries were between 55 and 64 years old. At age 65, recipients stop receiving the monthly CPP-D benefit and begin receiving their Canada Pension Plan retirement pensions.

According to the government, the number of CPP-D beneficiaries has increased over the years, partly because of the aging population and its rising prevalence of disabilities. In the 2000–01 fiscal year, the CPP-D program had approximately 282,000 recipients, who together received just over $2.5 billion in disability benefits. By the 2013–14 fiscal year, the program had almost 330,000 recipients (an increase of 17 percent), who received just over $4 billion in disability benefits (an increase of 59 percent).

Alternatively, if the application is denied, applicants may ask to have the decision be reconsidered. Employment and Social Development Canada reported, in the 2014–15 fiscal year, that it adjudicated 69,075 initial applications, of which 29,368 (43 percent) were granted and 39,707 (57 percent) were denied. The department also reconsidered 13,159 of its decisions, of which 4,661 (35 percent) were overturned and subsequently approved.

Applicants who are denied again after requesting reconsideration may file an appeal with the Social Security Tribunal of Canada (the Tribunal). 

The Tribunal runs independently of government departments. This self-contained, administrative tribunal processes and decides appeals on income security programs such as the CPP-D program. When the Tribunal began operations on April 1, 2013, it replaced four tribunals, including two that had been responsible for deciding CPP-D appeals; the Office of the Commissioner of Review Tribunals and the Canada Pension Plan Pension Appeals Board. Members of the Tribunal are located throughout Canada. 

If you’re looking for help with denied CPP-D applications, Brematson Disability Advocates can help. Give us a call today to discuss what the next steps towards approval are.