How is CPP Disability calculated in Canada?
CPP-D has two parts: a flat-rate portion paid to every approved recipient, plus an earnings-based portion equal to 75% of the CPP retirement pension you had earned through your contributions. The two are added together, up to an annual maximum.
Is CPP Disability needs-based?
No. CPP-D is a contributory insurance benefit, not social assistance. Your savings, assets, and spouse's income do not reduce it. You must have made sufficient CPP contributions (generally in 4 of the last 6 years) and have a severe and prolonged disability.
How does CPP Disability differ from US SSDI?
Both are contributory disability insurance. The key difference is the formula: SSDI applies PIA bend points to your average indexed earnings, while CPP-D uses a flat-rate portion plus 75% of your earned retirement pension. CPP-D's maximum is lower than SSDI's, and CPP-D has a 4-month waiting period versus SSDI's 5 months.
Do CPP-D rates change every year?
Yes. The flat-rate portion, the maximum benefit, and payment amounts are indexed to inflation and adjusted every January. This calculator shows a current-year estimate.