Post Retirement Disability Benefits - A Cautionary Tale


We recently posted a blog entry about Post Retirement Disability Benefits which you can find here

I am writing this blog to advise and warn Canadians about what Employment and Social Development Canada (CPP) are now doing and ask for you to watch out when you are making a CPP Disability application.

I would like to introduce you to a recent client Wilma. Wilma was born in 1959 and was in receipt or CPP early retirement benefits since age 60. At the time of her CPP disability application she had been on early CPP retirement benefits for less than 15 months, so she was able to convert to a CPP Disability benefit.


Wilma made her application for CPP disability benefits in June 2019.


In October 2020, some 16 months later, Wilma received a letter from CPP disability advising that she had been in receipt of a CPP early retirement benefit since May 2019 – but the documents and medical information submitted did not support that she was disabled at that time.


Wilma has a grade 12 education – she stopped working for her son in March 2018 due to her medical conditions. In her medical reports her doctor supported that she stopped working in 2018, and that due to a combination of medical conditions she was “unable to return to any form of work in the foreseeable future”.


The medical adjudicator contacted Wilma to discuss her application that her medical conditions stopped her from being able to work inFebruary 2018.


In the CPPD decision summary the medical adjudicator asks two questions.


1.    Was she disabled prior to her collection of CPP early retirement in April 2019?

2.   Was she disabled at the time of her Post Retirement disability cut-off date of December 2020?


The medical adjudicator decided Wilma was not disabled enough to receive a CPP disability benefit in April 2019.

 However, the medical adjudicator stated she was disabled for the Post Retirement Disability Benefit in December 2020.


Why is this a problem for Wilma? She was found disabled right?

Yes – but wait…


Her PRDB was approximately $500 a month – CPP made their decision in October 2020 and her benefit was granted and started in November 2020


So, figure this out – after applying for CPP disability benefits in June 2019 and waiting for 16 months for a decision Wilma received $500 in back pay.


Fortunately, Wilma had been a client of DCAC since the time of her application. We were able to review the denial letter and knew thatWilma was being ripped off for approximately 16 months of back pay from CPP disability. I believe that many people would have read the CPP decision letter and accepted it; thereby being taken advantage of.


Wilma had been disabled well before the April 2019 date and continuously until present. We appealed and requested reconsideration of the decision which was granted and last month Wilma received backpay for her CPP disability benefits in the amount of $20,000. A far cry from the $500 they initially paid her.


I write this blog for several reasons.


1.    To highlight the length of time it takes to get a decision from CPP disability

2.    To illustrate why it is very important to have are presentative assist you through this process

3.    To identify how CPP treats people and plays on their lack of knowledge about the process

4.    To educate Canadians on the difference of PostRetirement Disability Benefits to CPP disability

If you have any questions, contact us! We are here to help you.

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