Page 121 - A Canuck's Guide to Financial Literacy 2020

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Note: The combined Survivor's and Retirement pension CANNOT exceed the Maximum
Retirement Pension Amount.

CPP Orphan Benefits

Canada Pension provides a monthly child benefit to dependent children of disabled or
deceased CPP contributors.

The child must be either:

• under age 18; or
• under age 25 and in full-time attendance at a recognized school or approved
educational institution.

A child of a deceased contributor may receive a monthly benefit up to 18 years old. If
they're enrolled in a recognized school or approved educational institutional, they may
receive the benefit until 25. The benefits are suspended if the child reaches age 18 and is
not enrolled in school full time but may be reinstated if they go back to school.

There are two types of children benefits

• Disabled contributor's benefit - monthly payment to children of a person who is
receiving a CPP disability benefit. It is discussed below.
• A surviving child's benefit - monthly payment paid to the child of a deceased
contributor. In order to the benefit to be paid, the deceased contributor must have
made enough contributions to the CPP.

How much can the child receive?

• As of 2019, the monthly children's benefit is $250.27. It is adjusted annually.

CPP Disability Benefits

Disabled contributors may be eligible to receive a disability pension and their children may
also be eligible to receive a disabled contributor's child pension. A person is considered
disabled under the Canada Pension Plan if they suffer from a severe and prolonged
disability. It can be physical or mental. According to the CPP,

• Severe means that you have a mental or physical disability that regularly stops you
from doing any type of substantially gainful work.
• Prolonged means that your disability is long-term and of indefinite duration or is
likely to result in death

Disability benefits are payable only if the contributor meets the minimum contributory
requirements.

• have made valid contributions to the CPP in 4 of the last 6 years, or