CPP disability benefits must be repaid

Canada Pension Plan Disability Benefits (CPP Disability Benefits) are deductible as collateral benefits from Income Replacement Benefits (IRBs) for motor vehicle accidents that occur on or after January 2, 2002.



In a previous blog post, we discussed the Arbitration decision in Pries and Economical, a September 2012 decision that stated that Economical was not entitled to repayment of income replacement benefits (IRBs) it had paid to Pries during the period he was entitled to CPP Disability Benefits (November 2008 to May 2010).

At Arbitration, Arbitrator Wilson determined that Economical was barred from recovering any of the lump sum funds received by Pries from CPP because it did not request repayment within 12 months of the first payment of IRBs.

Economical appealed this decision, arguing that they were entitled to recover the overpayment amount and that Arbitrator Wilson erred by not following the case law on the issue, Trottier v. Royal & Sun Alliance.

The Appeal in this matter was recently heard and the decision of Director’s Delegate Evans has now been released. Director’s Delegate Evans overturned Arbitrator Wilson’s decision, finding that Economical was entitled to recover payment for 12 months of IRBS paid. In the view of Director’s Delegate Evans, Economical gave notice “within 12 months after the payment was made” and therefore was entitled to recover 12 months of the 16 months of overpayment.

Economical took issue with the term “payment” in S.47 (3) of the Statutory Accident Benefits Schedule, and with the phrase, “within the 12 months after the payment was made”. They argued that they should be able to recover the full amount of the overpayment. 

At Aaron Waxman and Associates, we handle long-term disabilty claims and CPP Disability Claims. If your CPP Disability Benefits have been denied, or your Long Term Disability Benefits have been denied, contact our office for a free, no obligation consultation.