A First View of the Future of the Canada Pension Plan Disability Program
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HOUSE OF COMMONS CANADA LISTENING TO CANADIANS: A FIRST VIEW OF THE FUTURE OF THE CANADA PENSION PLAN DISABILITY PROGRAM Report of the Standing Committee on Human Resources Development and the Status of Persons with Disabilities Judi Longfield, M.P. Chair Carolyn Bennett, M.P. Chair Subcommittee on the Status of Persons with Disabilities June 2003 The Speaker of the House hereby grants permission to reproduce this document, in whole or in part for use in schools and for other purposes such as private study, research, criticism, review or newspaper summary. Any commercial or other use or reproduction of this publication requires the express prior written authorization of the Speaker of the House of Commons. If this document contains excerpts or the full text of briefs presented to the Committee, permission to reproduce these briefs, in whole or in part, must be obtained from their authors. Also available on the Parliamentary Internet Parlementaire: http://www.parl.gc.ca Available from Communication Canada — Publishing, Ottawa, Canada K1A 0S9 LISTENING TO CANADIANS: A FIRST VIEW OF THE FUTURE OF THE CANADA PENSION PLAN DISABILITY PROGRAM Report of the Standing Committee on Human Resources Development and the Status of Persons with Disabilities Judi Longfield, M.P. Chair Carolyn Bennett, M.P. Chair Subcommittee on the Status of Persons with Disabilities June 2003 STANDING COMMITTEE ON HUMAN RESOURCES DEVELOPMENT AND THE STATUS OF PERSONS WITH DISABILITIES CHAIR Judi Longfield VICE-CHAIRS Eugène Bellemare Monte Solberg MEMBERS Peter Adams Ovid Jackson Libby Davies Gurbax Malhi Norman Doyle Larry McCormick John Finlay Raymond Simard Peter Goldring Larry Spencer Jim Gouk Diane St-Jacques Monique Guay Suzanne Tremblay Tony Ianno CLERK OF THE COMMITTEE Danielle Belisle FROM THE RESEARCH BRANCH OF THE LIBRARY OF PARLIAMENT Chantal Collin Kevin B. Kerr iii THE SUBCOMMITTEE ON THE STATUS OF PERSONS WITH DISABILITIES OF THE STANDING COMMITTEE ON HUMAN RESOURCES DEVELOPMENT AND THE STATUS OF PERSONS WITH DISABILITIES CHAIR Carolyn Bennett MEMBERS Mauril Bélanger Nancy Karetak-Lindell Anita Neville Tony Tirabassi Reed Elley Madeleine Dalphond-Guiral Wendy Lill Norman Doyle CLERKS OF THE SUBCOMMITTEE Mike MacPherson Rémi Bourgault FROM THE RESEARCH BRANCH OF THE LIBRARY OF PARLIAMENT William R. Young Kevin B. Kerr iv THE STANDING COMMITTEE ON HUMAN RESOURCES DEVELOPMENT AND THE STATUS OF PERSONS WITH DISABILITIES has the honour to present its FIFTH REPORT In accordance with its mandate under Standing Order 108(a)(b), your committee established a subcommittee and assigned it the responsibility of examining the status of persons with disabilities. The Subcommittee studied the Canada Pension Plan Disability Program. Your committee adopted the following report with reads as follows: v TABLE OF CONTENTS FOREWORD.................................................................................................................xi CHAPTER 1: ONLINE CONSULTATIONS: THE NEXT STEP IN PARLIAMENTARY DEMOCRACY .......................................................................... 1 1.1. How it Began ................................................................................................... 2 1.2 Consulting Canadians...................................................................................... 3 1.3 Who Did We Reach?....................................................................................... 4 1.4 A Complementary Process .............................................................................. 9 1.5 What We Discovered..................................................................................... 10 CHAPTER 2: CANADA PENSION PLAN DISABILITY AND THE GAP BETWEEN VALUES AND PRACTICES................................................................ 15 2.1 CPP(D): What It Is and How It Works............................................................ 15 2.2 What We Discovered..................................................................................... 23 2.2.1 How Relevant is the CPP(D) Program to Canadians?....................... 23 2.2.2 Is CPP(D) Meeting its Objectives and Principles? ............................. 23 2.3 The Need for Flexibility .................................................................................. 25 CHAPTER 3: MODERNIZING CPP(D) DEFINITIONS AND ELIGIBILITY.................. 29 3.1 What We Discovered..................................................................................... 31 3.1.1 Defining Disability.............................................................................. 31 3.1.2 What about Degenerative, Cyclical and Mental Disabilities?............. 34 3.2 Gatekeeping .................................................................................................. 36 3.2.1 Applying the Definition of Disability.................................................... 36 3.2.2 Adding More Gatekeepers................................................................. 41 vii 3.3 About the Real World .................................................................................... 41 3.3.1 CPP(D) and the “Real World” ........................................................... 42 3.3.2 Interpreting “Not Regularly Able to Pursue ay Substantially Gainful Occupation” .......................................................................... 44 3.3.3 Kids, Parents and School in the “Real World” .................................. 47 3.4 Four Out of Six: A Magic Number?................................................................ 50 CHAPTER 4: IMPROVING THE CPP(D) APPLICATION AND APPEAL PROCESSES ........................................................................................................ 53 4.1 The Facts about Applications ........................................................................ 53 4.2 What We Discovered: Applications ............................................................... 55 4.2.1 The Application Process.................................................................... 57 4.2.2 Is Information and Documentation Related to the CPP(D) Program Readily Available?............................................................... 57 4.2.3 Completing the Application and Filling out the Forms........................ 59 4.2.4 The Response to the Application....................................................... 61 4.2.5 Denying Applications — A Routine Procedure? ................................ 63 4.2.6 Reassessments ................................................................................. 64 4.3 The Appeal Process ...................................................................................... 65 4.3.1 What We Discovered: Appeals.......................................................... 68 4.3.2 Improving the Appeals Process ......................................................... 68 4.3.3 Is the Mistrust Due to Lack of Information? ....................................... 70 4.3.4 Going through the Appeals Process .................................................. 70 CHAPTER 5: THE ADEQUACY OF CANADA PENSION PLAN DISABILITY BENEFITS ............................................................................................................. 73 5.1 Should Canada Pension Plan Disability Benefits Be Increased? .................. 75 5.2 CPP(D) and Disability Supports..................................................................... 78 5.3 Taxation of CPP(D)........................................................................................ 80 viii CHAPTER 6: THE CANADA PENSION PLAN AND OTHER DISABILITY INCOME SUPPORT PAYMENTS: THE NEED FOR BETTER INTEGRATION .... 83 6.1 The Incidence of CPP(D) and Other Income Support Programs................... 84 6.2 CPP(D) and Private Insurers ......................................................................... 87 CHAPTER 7: RETURNING TO WORK UNDER CANADA PENSION PLAN DISABILITY ................................................................................................. 97 7.1 What We Discovered..................................................................................... 98 7.2 CPP(D) and Earnings, and the Automatic Reinstatement of Benefits ........... 99 7.3 Vocational Rehabilitation............................................................................. 102 CHAPTER 8: NEXT STEPS...................................................................................... 107 8.1 Should CPP(D) be Delinked from CPP Retirement Benefits? .................... 107 8.2 Making Disability Income Benefits Work for Canadians .............................. 108 LIST OF RECOMMENDATIONS .............................................................................. 111 APPENDIX A — LIST OF WITNESSES ................................................................... 125 APPENDIX B — LIST OF BRIEFS............................................................................ 131 REQUEST FOR GOVERNMENT RESPONSE......................................................... 133 MINUTES OF PROCEEDINGS................................................................................. 135 ix FOREWORD The members of the Subcommittee on the Status of Persons with Disabilities would like to thank every individual, organization, federal department and agency who took the time to participate in our study of the Canada Pension Plan Disability program and to provide us with their views. To those who responded to our e-consultation — we have incorporated your voices so that everyone who reads this report will