Recently in CPP Category

By Shira Bernholtz B.A., LL.B.

Client Services Lawyer, Share Lawyers, Lawyers

Most people in Canada, even those who have worked for several decades, are unaware of the full benefits of CPP.  Just about everyone knows that there is a retirement pension available once you reach your 60s.  But those premiums you complain about every paycheque also support a disability fund.

If you become medically disabled to continue working, you should apply.  The test for entitlement in the legislation is considered very tough but many people do qualify.  Contrary to some misconceptions, including those held by many doctors, you do not have to be dying or confined to bed.

You do need to apply as soon as possible as CPP will only back-pay a certain time period if you are found to be eligible.  The forms are not difficult but there are several including a medical report.  You can submit more than one medical form from different specialists or from your family doctor and a specialist.  Be sure to keep copies of all papers submitted.

You are supposed to receive an acknowledgement that your application was received.  If you do not, or if more than three months has passed since you have had any communication, call to check on the status of your file.  A final decision usually can take six months to process.

If you are rejected on the first application, submit a request for reconsideration.  The correspondence received from CPP explains the process in detail.  You have to send a note asking for the reconsideration, and can add anything you wish.  The important information is a "targeted letter" from your doctor(s).  This is a note refuting the reason for the refusal by CPP, advising why the decision is wrong from a medical viewpoint. 

There is no need to restate the history.  And we know that the information may be available within the reports and records already submitted to CPP.  However, it is necessary to put the specific details up front to them.

Statistically the further you proceed into the appeals, the higher the percentage of acceptances.

If you are accepted, the benefits are payable to age 65, unless you recover your health.  At age 65 years, the benefit will revert to the retirement benefit calculated on the basis of your contributions.  Having received CPP disability does not affect the amount.

The obvious answer to this question is that you need a source of income.  But what happens when you are medically unable to work and the insurance company refuses to pay you benefits on the long-term disability policy?  The long range solution is to retain Share Lawyers to fight the insurance company decision and win a settlement payment.  There are, however, a number of short-term options, besides accumulating debt or high credit card balances.

First, be sure you have made all possible claims: employment insurance sickness benefits, short-term disability plan payments, Ontario Disability Support Program, Canada Pension Plan for disability, insurance taken on loans (including mortgages) and other debts (especially credit cards) or life insurance premiums coverage.

Timing of the application can be crucial.  Obtain all necessary forms immediately so you can take the time needed.  Once submitted, follow-up with a call or visit the local office to ensure the file is in process.  And always keep copies of the documents and reports submitted.

Secondly, do you have non-core assets that can be sold?  An investment property, unworn jewellery, sports equipment you can no longer use?  What about a recreational vehicle?  Further, can you downsize to reduce or even eliminate some monthly costs? 

We realize that these are often painful actions.  And they take a toll on your scarce energy.  Just keep repeating that being proactive and facing the monetary issues is much less stressful than having to react to an immediate crisis.

There is also the possibility that you may qualify for social assistance payments. 

None of these scenes is pleasant nor fun. Try to remember that the financial problems are secondary to the real concern- that you are medically unable to work.  The reasons for your lack of funds are beyond your immediate control.  There is a resolution at the end of the tunnel- the hardest part can be making it through.