To qualify or be eligible for disability pension benefits the employee must have enough CPP contributions and meet an extremely stringent definition of disability.
The Canada Pension Plan provides a disability pension for employees who contributed to the CPP for at least 4 of the past 6 years (or 3 of the past 6 years after 25 years of contributions) and suffer from a severe and prolonged mental or physical disability that prevents them from engaging in any substantially gainful occupation.
Most disability pensions are denied because the disability must be considered to be both:
The CPP disability pension benefit is calculated based on earning when the disability occurred rather than the projected retirement benefit.
According to Service Canada, the average monthly disability pension benefit is $856.67. The dependent children of a claimant who are under the age of 18 and in school full-time receive a $228.66 monthly benefit.
Benefits commence after 4 months of total permanent disability and continue to a maximum age of 65 provided that the claimant continues to suffer from a severe and prolonged mental or physical disability that prevents them from engaging in any substantially gainful occupation.
CPP disability pension benefits are taxable income.