Canada Pension Plan (CPP) Disability Pension is a monthly pension that is paid to people who have contributed to the plan and who are disabled according to CPP legislation.
If it appears you may be eligible for CPP disability benefits, the Claims Administrator will require you apply. If your application is successful, your LTD disability benefits will be reduced by the amount of any primary CPP disability benefits you receive. The amount you receive from CPP for the children's benefit is not deducted from your LTD income.
The advantages to you of receiving a CPP disability pension are:
It places a freeze on your financial earnings as of the date of disability. This prevents CPP from establishing a record of zero or nil earnings to average into your future retirement or disability income calculation for the period you are disabled from working and not contributing to the CPP fund. Without this earning freeze your future entitlement to CPP benefits, including retirement benefits, could be adversely affected.
If you are in receipt of CPP disability benefits at the time of your death, CPP survivor benefits will be paid at the full level as though you had been working until the date of your death.
The LTD Plan only offsets the primary CPP disability amount from the LTD benefit. The CPP disability benefit payable on behalf of any dependent children (secondary) is not offset from your LTD benefit.
