Can You Receive CPP Disability and Long-Term Disability Benefits?
Yes. In many cases, individuals receiving long-term disability (LTD) benefits through a private insurance policy can also receive Canada Pension Plan Disability (CPPD) benefits.
However, most LTD policies include provisions that require claimants to apply for CPP Disability and allow the insurer to reduce LTD payments based on the amount of CPP benefits received.
This is known as a benefit offset.
Understanding how CPP Disability interacts with long-term disability insurance is important because it can affect both your monthly income and your legal rights under your disability policy.
Why LTD Insurers Require You to Apply for CPP Disability
Many long-term disability insurance policies require claimants to apply for CPP Disability benefits.
Insurers often insist on this because:
- CPP Disability payments may reduce the amount the insurer must pay
- CPP Disability provides government-backed income support
- The insurer may recover part of the LTD payments through offsets
For example:
If your LTD benefit is $3,000 per month and CPP Disability pays $1,200 per month, the insurer may reduce its payment to $1,800 per month.
The total income remains similar, but the insurer’s financial responsibility decreases.
What Happens If You Do Not Apply for CPP Disability?
If your long-term disability policy requires you to apply for CPP Disability, refusing to do so may create problems with your insurer.
In some cases, the insurer may:
- Estimate the CPP Disability amount you could receive
- Reduce your LTD benefits based on that estimate
- Pressure you to apply for CPP Disability
What Happens if Your CPP Disability Claim Is Denied?
If your CPP Disability application is denied, you may still be able to continue receiving long-term disability benefits through your insurance policy.
However, the insurer may still expect you to appeal the CPP Disability decision.
In many cases, insurers require claimants to:
- Request reconsideration of the CPP Disability decision
- Appeal to the Social Security Tribunal of Canada
CPP Disability Back Pay and LTD Benefits
If your CPP Disability claim is approved after a delay — particularly after an appeal — you may receive retroactive CPP Disability payments.
Because most LTD policies include offset provisions, insurers may require repayment of LTD benefits that were previously paid for the same period.
For example:
- You receive LTD benefits for 18 months while waiting for CPP Disability approval
- CPP Disability is later approved with retroactive payments covering that period
- The insurer may request repayment of the overlapping LTD benefits
Why CPP Disability Applications Matter for LTD Claims
Even though CPP Disability benefits may reduce LTD payments, applying for CPP Disability can still be important.
CPP Disability approval may help:
- Confirm that your disability prevents you from working
- Strengthen your position in disputes with insurers
- Provide additional income protection
Because of this, CPP Disability decisions sometimes play a role in long-term disability disputes.
Common Issues Between CPP Disability and LTD Claims
Many claimants encounter challenges when dealing with both programs.
Common issues include:
- Insurers pressuring claimants to apply for CPP Disability
- Disputes over whether someone can work
- Confusion about offsets and repayment obligations
- Delays while waiting for CPP Disability decisions
When to Speak With a CPP Disability Lawyer
You may want to speak with a lawyer if:
- Your long-term disability insurer is pressuring you to apply for CPP Disability
- Your CPP Disability claim was denied
- Your LTD benefits were reduced due to CPP Disability offsets
- You are unsure how CPP Disability affects your insurance benefits
Speak With a CPP Disability Lawyer
If you are dealing with both CPP Disability and long-term disability benefits, our disability lawyers at Samfiru Tumarkin LLP can review your situation and help you understand your rights.