CPP Disability and LTD Benefits in Nova Scotia

When disability disrupts your life, the last thing you want to navigate is a maze of conflicting policies and benefit programs. But that’s the reality many Nova Scotians face when trying to understand what they’re entitled to. Canada Pension Plan Disability (CPP Disability) benefits and Long-Term Disability (LTD) benefits each play an important role in offering support, but when both come into the picture? Things get complicated. Sometimes frustratingly so.

This article breaks down how these two systems operate—individually and together—so you can make sense of what help is available, how to access it, and what to expect along the way.

Understanding CPP Disability Benefits

CPP Disability benefits are federal payments made through the Canada Pension Plan. They’re designed to provide income support to people who, due to a medical condition, are unable to work on a regular basis. Not temporarily, not part-time—completely unable to engage in substantially gainful work.

These entitlements aren’t automatic, nor are they particularly easy to get. They exist to support those with severe and prolonged disabilities, and the government doesn’t take that standard lightly.

Even if you feel like your ability to work is clearly compromised, the system will require you to prove it with paperwork. And then more paperwork. It’s not a lack of empathy—it’s bureaucracy, and sometimes, it’s hard to separate the two.

Eligibility Criteria

To qualify, you need to check three key boxes:

• You must be under 65 years of age.
• Your disability must be both severe and prolonged. “Severe” means it prevents you from doing any type of regular work. “Prolonged” means it’s long-term or won’t improve.
• You must have contributed enough to the Canada Pension Plan. Generally, this means contributions in four of the last six years, though exceptions exist.

Even if your condition seems clearly disabling, the government requires proof—detailed, consistent, medical documentation. And yes, that often includes notes from multiple doctors, possibly even specialists. The bar isn’t impossible, but it’s higher than many expect.

Sometimes applicants feel like they’re stuck in a loop: not well enough to work, but not “disabled enough” in the government’s eyes. It’s one of the most frustrating parts of the system—and it’s why getting early legal guidance can make a difference.

Coverage

CPP Disability benefits provide monthly payments until you either turn 65 or no longer meet the disability criteria. Once you hit 65, the support converts into standard retirement pension payments.

Amounts vary, depending on how much and how long you contributed to CPP. As of early 2025, the average monthly payment hovers around $1,100–$1,200, but it can go higher depending on your earnings history.

It’s also worth noting that CPP Disability isn’t meant to replace your full income. It’s a base-level support system—one designed to help, not to sustain fully. That’s where LTD benefits often come into play.

Application Process and Required Documentation

Applying requires:

• A completed application form (which you can now submit online or by mail)
• A medical report from your healthcare provider
• Supplementary documents if requested (e.g., employment history, additional specialist opinions)

Processing times are unpredictable. Some people wait months. Occasionally longer. And if you’re denied, which happens more often than you’d think, you’ll need to appeal. That process has its own timeline and complexity.

The application process can feel emotionally taxing. You’re expected to re-live your medical history, explain your limitations, and essentially defend why you’re not able to work. For some, that’s exhausting. For others, it’s re-traumatizing.

But it’s essential. Incomplete applications—or ones with vague or inconsistent medical support—are often dismissed outright. It’s not about perfection, but clarity. Strong, specific details go a long way.

Overview of Long-Term Disability (LTD) Benefits

Long-Term Disability benefits are insurance payments that replace a portion of your income if you’re unable to work due to illness or injury. Unlike CPP Disability, LTD benefits aren’t a government program. They come from insurance policies—either private or employer-sponsored.

Think of LTD as a safety net that kicks in after short-term disability benefits end (if you had those). Typically, the waiting period is around 90 to 120 days. It’s during that gap—between your last paycheque and your first LTD payment—that many people experience the financial strain most acutely. For some, it’s a jarring transition. You’re not working, but your expenses haven’t changed. That pressure alone can be overwhelming.

The goal of LTD insurance is to offer stability during a difficult period—but accessing it isn’t always simple or straightforward. Some policies seem written in code, and claimants are often caught off guard by the number of restrictions and exclusions buried in the fine print.

Sources of LTD coverage

Most people in Nova Scotia get LTD coverage in one of two ways:

• Employer-sponsored group plans: Offered through your workplace, these policies often include mandatory clauses about applying for CPP Disability benefits. If you’re covered through work, it’s worth asking HR for a copy of the full plan—not just a benefits summary.
• Private insurance: Purchased individually, sometimes with more flexible (but expensive) terms. These policies may allow more control over coverage amounts and definitions, but they also require more upfront understanding of what you’re buying. And what you’re not.

Each policy has its own fine print. And, as with most insurance contracts, the details matter. A lot. Whether or not pre-existing conditions are covered, how mental health claims are evaluated, what kinds of medical documentation are required—it all varies.

Some plans also include time limits for submitting claims. Miss a deadline—even accidentally—and your right to collect benefits might vanish entirely. It’s an area where proactive steps early on can make all the difference.

Eligibility Criteria

Eligibility often depends on two main definitions:

• “Own Occupation”: For the first 24 months, you typically qualify if you can’t perform the duties of your own job. That might mean your exact position, with its particular demands—not just a generic job title.
• “Any Occupation”: After that, some policies shift to a stricter standard, requiring that you be unable to work in any occupation suited to your education and experience.

The shift from “own” to “any” can be where many LTD claims are terminated. Insurers may argue that you’re capable of doing some kind of work—even if it’s a low-paying or unsuitable role. Whether that’s realistic or fair is another question, but it’s one that comes up often.

It’s not just about physical ability either. Cognitive and psychological impairments are part of this discussion, and they’re often harder to quantify. A person might physically appear fine, yet be dealing with debilitating anxiety, memory loss, or chronic fatigue—issues that don’t always show up in scans but still destroy work capacity.

Application Process

Applying for LTD means providing:

• Medical records and physician statements
• Employer documentation
• An in-depth description of how your condition affects your ability to work

Even if approved, your insurer may periodically reassess you. Independent medical exams, surveillance, and file reviews are all possible.

Can I Receive Both CPP Disability and LTD Benefits in Nova Scotia?

This is the part that often catches people off guard. Yes, you can receive both CPP disability and LTD benefits in Nova Scotia—but there’s a catch. A big one.

Most LTD policies include what’s called a “deductible income clause” or “offset provision.” What does that mean in plain English? It means your LTD payments will be reduced by the amount you receive from CPP Disability.

Say your LTD benefit is $2,500 a month. If CPP Disability approves you for $1,100, your insurer now only pays the difference—$1,400. The idea is that between the two sources, you still receive the same amount. The insurer just pays less.

This can feel frustrating, especially after the effort it takes to get CPP Disability approval. But from the insurer’s perspective, it’s built into their risk calculations.

Sometimes, the insurer requires you to repay them if CPP Disability approves retroactive support. For example, if you were approved for CPP Disability with 12 months of back pay, and your LTD insurer already paid in full for that period, they’ll likely ask for reimbursement. They may even withhold future LTD payments until the overpayment is cleared.

All of this depends on the exact wording of your policy. Which means: read it carefully. Or better yet, have a disability lawyer interpret it.

Will I Pay Taxes on CPP Benefits?

Yes. CPP Disability benefits are taxable income.

Whether you owe additional taxes depends on your total income for the year. LTD benefits, by contrast, are only taxable if your employer paid the premiums. If you paid the premiums yourself (as with some private policies), your LTD income might be tax-free.

So, it’s possible to receive two disability payments with very different tax implications. This surprises people. It can also complicate budgeting if you’re suddenly taxed on CPP benefits and your LTD payment shrinks at the same time.

You may want to talk to an accountant, or at least keep an eye on how your disability income affects your tax return.

How Preszler Injury Lawyers Can Help

Trying to make sense of CPP long term disability rules and LTD offset clauses while managing a serious health condition is, frankly, overwhelming.

That’s where we come in.

At Preszler Injury Lawyers, we’ve helped countless Nova Scotians fight for fair treatment from both the government and insurance companies. We understand the tactics insurers use to deny or reduce valid LTD claims. We also know how to navigate CPP disability eligibility requirements.

Whether you’ve just become disabled, been denied support, or are facing repayment demands after CPP approval, we can help.

Our team provides:

• Policy reviews to interpret confusing LTD language
• Appeals for denied CPP Disability or LTD claims
• Advice on when and how to apply for both programs
• Advocacy to challenge unjust offsets or clawbacks

You shouldn’t have to fight for support while you’re also fighting for your health. Let us take some of the weight off.

Visit our Long-Term Disability Lawyers page to learn more or contact us directly to speak with a member of our team.