# CPP Disability - Forced Retirement?



## Money4life (May 17, 2012)

My fiance's mother is very ill and has applied for CPP Disability. If she manages to get this, does this mean that she has to retire from her job? Sorry if this is common knowledge to others but I been unable to find this answer. I know that when we work, we are always deducting some of our pay to CPP for retirement so this is leading me to believe that this will be the case. The ultimate problem with this is she has huge medical expenses that her current employer helps out with thanks to her benefits plan. 

I have a part 2 question. She has many RRSPs that are locked into GICs. Many of them going into 2014 or later. Say she retires...or she is forced to retire, is she eligible to claim these GICs or does she have to wait until maturity?

thanks!


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## stardancer (Apr 26, 2009)

If one is on CPP disability, the most one is allowed to earn from employment is $4900 (or thereabout). Over that, and CPP deems one is able to work. That's what CPP disability is about- you are disabled enough that you cannot earn a living. Note: this limit does not apply to other income such as private disability plans or investment income.

As for GICs, she would have to check with her bank for their rules.


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## MoneyGal (Apr 24, 2009)

What SD said. From the Service Canada website, see question 2: 

http://www.servicecanada.gc.ca/eng/isp/cpp/applicant.shtml#b


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## Money4life (May 17, 2012)

stardancer said:


> If one is on CPP disability, the most one is allowed to earn from employment is $4900 (or thereabout). Over that, and CPP deems one is able to work. That's what CPP disability is about- you are disabled enough that you cannot earn a living. Note: this limit does not apply to other income such as private disability plans or investment income.
> 
> As for GICs, she would have to check with her bank for their rules.


Thanks for the reply. The $4900 amount...is that a yearly gross amount? Does the amount of $4900 count as of the beginning of the year or when the person is technically on CPP disability?


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## MoneyGal (Apr 24, 2009)

It's $5000 gross for 2012, see here: http://www.servicecanada.gc.ca/eng/isp/pub/cpp/disability/benefits/receive.shtml

(All the answers you've been looking for so far are on the Service Canada website for CPP disability, BTW)


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## Money4life (May 17, 2012)

You're right, I will try to be more diligent before posting next time. Sorry.


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## MoneyGal (Apr 24, 2009)

No worries! I am happy to help. I just thought it might be useful for you to know where the answers were coming from. each:


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