What is the test Canada Pension Plan uses in determining whether someone qualifies for benefits?
The Canada Pension Plan uses a twofold test. First, the individual must be incapable of regularly pursuing substantially gainful employment. Secondly, the disability must be severe and prolonged. Severe and prolonged is defined in terms of the future, not past. An injury is severe and prolonged if it will last for an indeterminate period of time. Canada Pension Plan’s interpretation of this definition is if the incapacity will last a finite or specified period of time, i.e. until after a major surgery, the injury is not prolonged. “Incapable of regularly pursuing substantially gainful employment” means incapable of performing any type of occupation which would result in compensation. If an individual is capable of earning income equivalent to minimum wage, he or she will still be able to pursue substantially gainful employment. This area is grey and each case must be analysed on its own fact scenario.
