CPP Disability and the Income Replacement Benefit

Unknown Soldier
IRB-It is reduced dollar for dollar whenever you take it. IE: 2019 - $1000 CPP 2024- $1420-
So in 2019 it reduces your IRB by 1000/m so you wait until the max amount then its reduced by $1420/m I do not see any benefit in delaying.

No matter what your age after 65 to 115 years of age your IRB is only 70% Max. Other than the annual COLA your IRB remains fixed so any increases in offsets only decreases your IRB monthly amount.

Other than "non offset" amounts discussed previously nothing can improve on monthly income unless you return to work and then your allow to make $20000 without any reduction. I would be careful with that one someone with all the benefits and DEC etc etc may have his case reviewed for entitlement.

AirLog wrote:My CPPD letter indicated that CPPD will automatically convert to CPP at age 65. Service Canada will make the change. Not sure if I can delay the CPP until age 70 seeing how it will automatically convert to CPP.

AirLog

I would call someone, I don’t think they can force you, I think the gov . Just assumes everyone will automatically take cpp at 65...many Canadians still don’t know you can take it as early as 60 ( with penalty) or hold off to 70 ( with bonus )

My CPPD letter indicated that CPPD will automatically convert to CPP at age 65. Service Canada will make the change. Not sure if I can delay the CPP until age 70 seeing how it will automatically convert to CPP.

AirLog

KetchupKD wrote:I believe there maybe scenarios where you would be advised to delay OAS and CPP.
1. Can someone present me one?
2.Another interesting thought occurs. If your on CPPD at 65 can you delay the CPP until 70?

The way i see it,it is dollar for dollar reduction to maintain the 70%.
There are several ways you can get above 70%  one way is those that have protected amounts of the now defunct CIA Supplement.  That amount is not part of the IRB 70% calculation.
Mind you, neither is the new tax free pension,the old pension act pension or the transferred amount from the also defunct CIA. None of these are offsets.
There is likely some who's  overall amount will far exceed their salary plus COLA!  Am I wrong about this?
Comments?

There's a strong incentive for deferring your CPP benefits past age 65. You'll receive 8.4 percent more each year that you delay taking CPP (up to a maximum of 42 percent more if you take CPP at age 70). as far as the cias goes, yes that’s a nice little perk...for those that have it, but now it’s gone. I know that when time comes if l can get by on what I take in at 65, lm not touching my CPP TIL, 70, why would someone if vac is only going to put that income against ELB/ IRB , let vac pay you from 65-70, then let the gov pay you even more CPP at 70 because you waited...unless of course, like l said before you really can’t  make ends meet payday to payday

I believe there maybe scenarios where you would be advised to delay OAS and CPP.
1. Can someone present me one?
2.Another interesting thought occurs. If your on CPPD at 65 can you delay the CPP until 70?

The way i see it,it is dollar for dollar reduction to maintain the 70%.
There are several ways you can get above 70% one way is those that have protected amounts of the now defunct CIA Supplement.  That amount is not part of the IRB 70% calculation.
Mind you, neither is the new tax free pension,the old pension act pension or the transferred amount from the also defunct CIA. None of these are offsets.
There is likely some who's overall amount will far exceed their salary plus COLA! Am I wrong about this?
Comments?

KetchupKD wrote:AirLog- All looks good with the plan. One comment - At 65 your reduced to 70% minus offsets. Even if your CPPD (which converts at 65 from CPPD to CPP) calculation at that point allows for a higher CPP amount it would be clawed back. IRB post 65 will keep your monthly total at 70% offset considered. Both the bridge benefit reduction in pension and the increased CPP are affected both up and down. The good news you are able to have clarity into the future.

the other part of that equation is that if a veteran can get by on IRB + CPPD, l would push off taking CPP to age 70, therefore there would be no reduction in IRB I don’t think because you didn’t take IRB at 65, but even if that’s wrong, if you can still get by with a 70% and CPPD and hold off TIL 70, you CPPD will be even greater. Of course, if you’re eating cat food by 65 by all means take CPP right away, maybe even at age 60 for some, despite the financial loss,you have to do what you have to do to survive.

Totally agree with you KetchupKD. Simply following what my (private) LTD provider wants me to do. In the end it ends up being a bit better than not having had CPPD.

AirLog

AirLog- All looks good with the plan. One comment - At 65 your reduced to 70% minus offsets. Even if your CPPD (which converts at 65 from CPPD to CPP) calculation at that point allows for a higher CPP amount it would be clawed back. IRB post 65 will keep your monthly total at 70% offset considered. Both the bridge benefit reduction in pension and the increased CPP are affected both up and down. The good news you are able to have clarity into the future.

I have very recently been approved for CPPD benefits. I am now following Bigrex's advice on how to proceed with informing military pension and VAC on my approval for CPPD benefits. One step at a time and prepare to give back to your military pension with respect to the bridge benefit. Once this is completed ensure that you receive a letter from military pension people with your new pension amount and how much you paid back and to what date. With this information (letter) you can now advise VAC on your new military pension amount and the amount of your CPPD benefits (to the back dated time). Everything should balance out from there. But be sure to inform the staff at military pension right away. They will want a copy of your CPPD benefits approval letter. One benefit of being on CPPD is that the time you are on CPPD doesn't count towards your CPP calculation when you turn 65. In other words CPP is based on the number of years worked and contributed to CPP. The years on CPPD don't count in the time worked/contributed calculation. So the time on CPPD means you will have a larger CPP benefit when you turn 65 as apposed to not being on CPPD and not working. Does this make sense?

As for the Disability Tax Credit (DTC), I have also recently applied for this tax credit. I have been approved for IRB and I have been designated DEC. VAC, CPPD, and CRA are three very different entities. Being approved for one doesn't mean you will be approved for the other. Three different departments, three different set of rules and, three different departments that don't communicate with one another nor do they coordinate benefits. The only advice that I can give you for your DTC application is speak to your doctor that will be filling out this DTC application to see if he/she supports your application. Write out exactly what your medical conditions are and how they limit you in your Basic Activities of Daily Living (BADL). Go to the DTC application process/explanation on CRA's site. You have to meet their definition of BADL and how they limit your life before you will be approved for this tax benefit. Best approach is research this tax benefit on CRA's site, write down how your life is limited within this CRA definition of BADL's and, present this information to your doctor. Have your doctor fill out the form and sit back and wait. CRA advises a 4 to 6 month wait for a decision. If approved the DTC can be back dated 10 years or to the date of your limitations as indicated by your doctor. Which ever comes first.

Take care.

AirLog

Howie1 wrote:Does anyone have a clear explanation for what the benefit is to getting CPPD while your on IRB with a DEC designation? I tried to read up on it but with the new changes it doesn't explain it very well from what i was able to find.

many will say don’t do it due to the hassle, deduction etc, however there is a separate payment CPPD gives you for each child that is for them and therefore not deducted, so if you have kids that makes it worth it to me, also CPPD is a monthly income, sure it states you are not allowed to earn any more than $4000 in terms of working, but many vets with CPPD are written off anyway so that shouldn’t be a hindrance, but as long as you have it, if vac/gov changes or takes away your IRB at least you still have CPPD to fall back on. I’ve heard of vets losing their rehab program/ IRB and then applying for CPPD, that’s a 4-6 month wait with no guarantee you’ll get it. I’d rather apply while IRB is coming in , in case their is a snag in your life, also, though it’s not necessary to have CPPD already, many vets apply for the CPPD tax credit once they have CPPD, and the gov goes back 10 years and applies it to any taxes you paid, some vets got back $10000, plus

Does anyone have a clear explanation for what the benefit is to getting CPPD while your on IRB with a DEC designation? I tried to read up on it but with the new changes it doesn't explain it very well from what i was able to find.

Paratrooper wrote:I'm currently receiving the Income Replacement Benefit and a CPP Disability pension.  My Clinical Care Manager informed me that all Veterans who receive a disability pension from Veteran Affairs are entitle to also receive the CPP Disability.  As such, she obtained all the paperwork required and submitted my request for a CPP Disability pension.  It has now been 2 years since I've been receiving this CPP Disability pension.  Unfortunately, I was informed that a Veteran who is receiving a CPP Disability pension MUST report it to Veterans Affairs and the FULL amount of his or her CPP Disability pension will be deducted from their Income Replacement Benefit.

Can anyone tell me if they have come across a similar situation with their CPP Disability pension?

from another thread....”l phoned CAF pension division and they told me to send them a copy of the payment letter I received from CPPD, so what happens now, will I eventually get a letter back from the military pension people with my newly adjusted rate at some point, and then I submit that letter to vac/ELB division .? Because right now I’ve heard back from no one and don’t even know if they will supply me with a letter detailing what my new lower military pension payment will be, however my first payment of CPPD has gone in the bank as well as my regular ELB payment , But my ELB payment is supposed to be lowered by whatever the amount of my CPPD deposit is right? I not sure when/how I’m supposed to make that happen. Anyone know..?” Big Rex wrote
OK, here is what you do. You will need to pay back the CF pension first. Then get a letter, stating what you new CF pension was for those months, because the CF pension doesn't deduct dollar for dollar, it just reduces it by the bridge benefit, of roughly $320, IIRC. Then once, you have that, contact VAC, and let them know that you have recieved CPP(D) retroactive, and they will deduct that money, from ELB. But then you inform them of the new reduced CF pension, for those same months, reducing the amount you will effectively need to pay back, from $6000, to roughly $5000. which you use the CPP back pay to cover. If done correctly, you should not be out of pocket, for paying back any of the ELB. Then starting next month, you ELB would be whatever is left of the 90% amount, that isn't covered by CPP(D) and the CF pension."........"......................................................................

The only deduction of CPPD I know of is your CF Pension if you are getting one. So inform the CF Pension office immediately because the longer you wait the more you will owe them.

As for what your Case Manager said that is IMO suspicious. You are allowed to earn/collect up to $20,000 a year before your ELB is reduced and even then the reduction is 50 cents on the dollar of another income.

To make sure give the Veteran Ombudsman Office a call to find out the right answer.

I'm currently receiving the Income Replacement Benefit and a CPP Disability pension.  My Clinical Care Manager informed me that all Veterans who receive a disability pension from Veteran Affairs are entitle to also receive the CPP Disability.  As such, she obtained all the paperwork required and submitted my request for a CPP Disability pension.  It has now been 2 years since I've been receiving this CPP Disability pension.  Unfortunately, I was informed that a Veteran who is receiving a CPP Disability pension MUST report it to Veterans Affairs and the FULL amount of his or her CPP Disability pension will be deducted from their Income Replacement Benefit.

Can anyone tell me if they have come across a similar situation with their CPP Disability pension?