CPP(D) is Canada’s largest long-term disability program. In 2000-2001, CPP(D) beneficiaries received total payments worth $2,552 million. This was accompanied by children’s benefit payments worth $235.2 million. Chart 6 shows that payments made during the period 1990-1991 to 2000-2001 peaked in 1994-1995, a somewhat surprising result given that the size of the CPP(D) caseload reached its apex in the following year. CPP(D)’s share (including children’s benefits) of total CPP payments also reached a maximum of 18.7% in 1994-1995, and since then has declined steadily to 14.2% in 2000-2001.
CPP(D) is a fully indexed, taxable monthly benefit. It consists of two parts — a flat-rate component and an earnings-related component. The former is a payment of $364.49 per month in 2002, while the latter is a payment equal to 75% of the retirement pension that a CPP(D) beneficiary would have received at age 65. In 2002, the maximum monthly CPP(D) benefit is $956.05 (or $11,472.60 per year). However, as shown in Chart 7(a), the average monthly CPP(D) today is about four-fifths of the maximum payment. This is down significantly from 1993, when the average CPP(D) monthly payment was about 96% of the maximum allowed. Dependents of CPP(D) beneficiaries receive a flat-rate children’s benefit worth $183.77 per month (or $2,205.24 per year) in 2002.
Unfortunately, there are no readily available data on trends in the average duration of CPP(D) benefits. According to the data presented in Chart 7(b), as of April 2002 the bulk (68.6%) of CPP(D) recipients had received benefits for less than 10 years. Only 2.2% of all CPP(D) beneficiaries at that time had received CPP(D) benefits for 20 years or more.
According to the data displayed in Chart 7(c), which relate to initial CPP(D) applications granted during the period 1 January 2001 to 12 July 2002, roughly 46% of CPP(D) recipients receive disability income from another source. This is somewhat lower than Statistics Canada’s 1995 estimate of 60%. [1] As found in the 1995 Statistics Canada survey, next to CPP(D) payments, private insurance is the second most common source of disability income support paid to CPP(D) beneficiaries. Employment Insurance, Social Assistance and Workers’ Compensation were the next most frequently reported sources of disability income among CPP(D) beneficiaries.