Human Resources Legislative Update
Proposed Amendment to CPP Regulations Defining “Substantially Gainful” Occupation
Date: February 18, 2014
On February 15, 2014, the federal government published proposed Regulations Amending the Canada Pension Plan Regulations. If adopted, the proposed Regulations would prescribe the meaning of “‘substantially gainful’, in respect of an occupation” in subsections 42(1) and 89(1) of the Canada Pension Plan (“CPP”), one of the factors relevant to determining when a person is deemed disabled for disability pension purposes. More specifically, to qualify for a CPP disability pension, a person must be incapable of regularly pursuing any “substantially gainful” occupation. Currently, the term “substantially gainful” is not defined in the CPP or the CPP Regulations.
For the purposes of determining whether an occupation is “substantially gainful,” the proposed amendment would mandate a calculation equalling 12 times the maximum monthly CPP disability amount. Accordingly, the 2013 calculation would be 12 times $1,212.90 per month, or $14,554.80.
The proposed Regulation is intended to “ensure consistency and transparency with respect to the benchmark for the Department, Social Security Tribunal, courts, and CPP disability pension applicants and beneficiaries.” Interested persons are invited to comment by March 15, 2014.