HUMA Committee Report

CHAPTER 1: ONLINE CONSULTATIONS: THE NEXT STEP IN PARLIAMENTARY DEMOCRACY

Recommendation 1.1

Given the success of the pilot project on e-consultation in complementing its regular committee study of the Canada Pension Plan Disability and providing Canadians with information as well as involving them, the Committee recommends that:

a.

Each committee of the House of Commons consider putting in place an information-based Web site.  Such a site could include common elements (e.g. information about how Parliament works, how committees operate and how to contact the committee) as well as information specifically related to an individual committee’s mandate, activities and background information related to its specific studies.

b.	The House of Commons and Library of Parliament be given appropriate additional resources to put in place information-based committee Web sites with the capacity to facilitate e-consultations.

c.	The House of Commons and the Library of Parliament should put in place an overall framework or suggested course of action to guide any future e-consultations.

d.	Where circumstances warrant, other committees of Parliament consider including e-consultations with Canadians as one of the options in carrying out a study.

CHAPTER 2: CANADA PENSION PLAN DISABILITY AND THE GAP BETWEEN VALUES AND PRACTICES

Recommendation 2.1

The Committee recommends that the current Federal/Provincial/Territorial Review of the Canada Pension Plan Disability take into account the fact that the current operations of the plan do not fully reflect the values that underlie the current legislation and regulations. One of these relates to equal access and we recommend that the Year’s Basic Exemption (YBE) for the purposes of disability be returned to $3,500 the same as that for retirement benefits.

Recommendation 2.2

The Committee recommends that the Government of Canada establish a permanent joint government and stakeholder advisory group (the CPP Disability advisory committee) with an ongoing mandate and resources to monitor and appraise the performance of the CPP disability program to ensure that it meets its stated purpose and objectives. Representation on the advisory group should include federal officials (Human Resources Development and Finance), health care providers, various disability organizations, patient advocacy groups, return to work and rehabilitation professionals. This advisory group should review performance and recommend changes to the CPP(D) on an ongoing basis and as part of the three-year federal/provincial/territorial review. The advisory committee should submit an annual report on its activities to the Standing Committee on Human Resources Development and the Status of Persons with Disabilities.

Recommendation 2.3

So that future policy decisions pertaining to CPP(D) will be based on higher quality information, the Committee recommends that the Government of Canada make improvements to the analytical base of information about CPP(D) by encouraging research and establishing:

a.	partnerships between Human Resources Development Canada and the Social Sciences and Humanities Research Council of Canada;

b.	financial support for academic research on disability income and supports to improve quality of life for Canadians with disabilities;

c.	fellowships to lever money for research on the disability income system; and

d.	public sources of data pertaining to the operations of the federal disability income system, at Statistics Canada data centers across Canada.

CHAPTER 3: MODERNIZING CPP(D) DEFINITIONS AND ELIGIBILITY

Recommendation 3.1

Given the ongoing problems with definitions of disability, the Committee recommends that the Privy Council Office establish a taskforce, modelled on the Voluntary Sector Taskforce, to work with relevant partners from the community to address these problems (particularly those associated with CPP(D) and the Disability Tax Credit). The Committee further recommends that the federal government initiate discussions with the provincial and territorial governments to bring some consistency and coherence to the definitions of disability used by programs in all jurisdictions.

Recommendation 3.2

The Committee recommends that a comprehensive information package be developed to provide a description of each federal disability program which requires medical assessments, its eligibility criteria, the full range of benefits available, copies of sample forms, and any other relevant material.

Recommendation 3.3

The Committee recommends that the terms “severe and prolonged” in section 42 of the Canada Pension Plan be amended to take into account cyclical and degenerative mental and physical conditions.

Recommendation 3.4

Whether Recommendation 3.3 is implemented or not, the Committee recommends that Human Resources Development Canada (HRDC) immediately amend its CPP regulations, administrative guidelines, and manuals to ensure that the interpretation of the term “severe and prolonged” disability properly considers degenerative diseases, as well as mental, episodic and invisible illnesses (e.g. chronic pain, chronic fatigue syndrome, fibromyalgia and multiple chemical sensitivities). In addition, HRDC should develop, in consultation with the community and health care professionals, specific evaluation tools for these particular disabilities to be used in assessing eligibility for CPP(D).

Recommendation 3.5

The Committee recommends that the mandate of the taskforce to clarify the definition of disability (see Recommendation 3.1) include, as a priority, consideration of specific ways to reduce the administrative burden placed on health care providers and applicants for federal disability benefits by using a common application form (or by consolidating application procedures) and common assessment procedures (e.g. using CPP(D)’s nurse practitioners also to determine eligibility for the Disability Tax Credit). 

Recommendation 3.6

The Committee recommends that Human Resources Development Canada provide the comprehensive information package (see Recommendation 3.2) to all health care professionals and put in place an outreach program to provide them with information and education.

Recommendation 3.7

The Committee recommends that HRDC immediately commission an independent evaluation of how the “severe and prolonged” eligibility criteria for CPP(D) are applied by CPP personnel in making decisions about eligibility. The Committee further recommends that the results of this evaluation be submitted to the CPP Disability advisory committee (see Recommendation 2.2) for discussion and recommendations no later than June 2004.

Recommendation 3.8

The Committee recommends that the Government of Canada amend the Canada Pension Plan to define “prolonged” for the purposes of establishing eligibility for CPP(D) benefits as any period of 12 months or longer regardless of whether an individual has returned to work prior to the approval of his/her application or appeal.

Recommendation 3.9

The Committee recommends that qualified health care professionals in addition to physicians be allowed to provide medical assessments for the purposes of determining eligibility for the CPP(D) and to complete  application forms.

Recommendation 3.10

Given the inconsistency in CPP(D)’s program administrators’ understanding of “socio-economic” factors, the Committee recommends that CPP(D)’s definition of disability be revised to explicitly include the decision of the Federal Court of Appeal in the Villani case. All CPP policies, manuals, administrative procedures, medical evaluations, and information to the medical professions and to the public should consistently and explicitly incorporate the spirit of the Villani decision.

Recommendation 3.11

The Committee recommends that HRDC amend its administrative practices so that no application for CPP(D) shall be deemed completed and assessed for eligibility until it contains a full and complete functional assessment of the applicant that specifically discusses non-medical factors that affect the individual’s employability.

Recommendation 3.12

The Committee recommends that HRDC conduct a detailed evaluation of how the CPP(D) program administrators are applying CPP(D) legislative guidelines in light of recent Review Tribunal and Federal Court decisions. The results of this evaluation should be submitted to the CPP Disability advisory committee (see Recommendation 2.2) for discussion and recommendations by June 2004.

Recommendation 3.13

In keeping with the Government of Canada’s commitments in the Skills and Learning Agenda and in its promotion of family-friendly workplaces, the Committee recommends that HRDC incorporate dropout provisions in CPP(D) for attending school or training, and for caregiving of family members. These new dropout provisions should be the same as the child-care dropout provisions.

Recommendation 3.14

The Committee recommends that all CPP(D) dropout provisions include identical provisions for allowing partial years in determining the duration of the dropout.

Recommendation 3.15

The Committee recommends that CPP(D) applicants 60 years of age and over be entitled to CPP(D) benefits if they meet the eligibility criteria instead of being encouraged or forced to apply for CPP retirement benefits. CPP(D) administrators should be instructed accordingly.

Recommendation 3.16

The Committee recommends that the Government of Canada amend the Canada Pension Plan after paragraph 44(2)(a) so that it reads:

(i)	for at least four of the last six calendar years included either wholly or partly in the contributor’s contributory period or, where there are fewer than six calendar years included either wholly or partly in the contributor’s contributory period, for at least four years; or

(ii)	for at least one-third of the total number of years included either wholly or partly within an applicant’s contributory period but in no case for less than three years, or

(iii)

for at least ten years; or77

(iv)	for each year after the month of cessation of the contributor’s previous disability benefit.

CHAPTER 4: IMPROVING THE CPP(D) APPLICATION AND APPEAL PROCESSES

Recommendation 4.1

The Committee recommends that Human Resources Development Canada (HRDC) establish, as a priority, client-friendly policies and practices in the application, assessment and approval processes for CPP(D).

Recommendation 4.2

The Committee recommends that HRDC process and approve all applications from clients who are terminally ill within 30 days of receipt and that the Government of Canada amend the Canada Pension Plan to eliminate for them the retroactivity provisions.

Recommendation 4.3

The Committee recommends that CPP(D) prepare and implement a comprehensive communications plan for CPP(D), that includes strategies to provide information to clients or potential clients of the program. People with disabilities, or their representatives, should be consulted during the development of this plan. This communications plan should include:

a.	training for frontline HRDC staff to provide appropriate responses to questions about CPP(D) and to assist people in filling out application forms;

b.	a targeted campaign to raise awareness of the program among organizations and community groups in contact with large numbers of possible applicants;

c.	better utilization of the resources of other government departments (particularly the Canada Customs and Revenue Agency); and

d.	formation of partnerships with other federal departments, provincial governments, income support programs, non-governmental organizations, support groups and qualified health care professionals to provide information about CPP(D).

Recommendation 4.4

The Committee recommends that the application forms and the accompanying guide be reviewed and revised to ensure that they are written in plain language, are as short as possible and provide clear information on how to submit the application. All information should be made available in alternate formats.  Persons with disabilities, advocacy organizations representing them and the health care community should be consulted in this review process.

Recommendation 4.5

The Committee recommends that CPP(D) launch a targeted outreach program for organizations, support groups and individuals who provide information and assistance to applicants for CPP(D). This outreach program should have dedicated resources to answer their questions and provide them with up-to-date information about application procedures.

Recommendation 4.6

The Committee recommends that HRDC, at its own expense, make greater use of independent medical examinations, functional capacity examinations and/or vocational assessments to provide more information about an individual’s inability to work.

Recommendation 4.7

The Committee recommends that when an individual’s application for CPP(D) is approved, the applicant should be reimbursed for the cost (upon submission of a receipt) of additional assessments (medical or functional) in addition to the physician’s report currently paid for by CPP(D).

Recommendation 4.8

The Committee recommends that HRDC:

a.	include in the CPP(D) application form a question asking all applicants to identify any third party that required them, for whatever reason, to submit an application for benefits to CPP(D); and

b.	charge the third party the cost of processing any such unsuccessful application.

Recommendation 4.9

The Committee recommends that HRDC explore ways of speeding up the flow of information required to complete an application. The department, for example, could encourage the electronic transmission of medical information from physicians provided this can be done in a manner that ensures confidentiality.

Recommendation 4.10

The Committee recommends that HRDC eliminate the use of form letters to deny an individual a CPP(D) benefit. HRDC should provide each client whose application is denied with a personal letter written in plain language (and in alternate formats if requested) that sets out all specific information related to the individual’s circumstances, explains the reasons for the denial of benefits and includes all information needed to appeal the decision. The Committee further recommends that similar procedures be followed for all reassessments.

Recommendation 4.11

The Committee recommends that HRDC allocate more resources to the initial consideration of applications in order to lower the number of unjustified denials and resulting appeals. In light of the important contribution of personalized contact in determining the eligibility of an applicant, the Committee further recommends that there be person-to-person contact between an applicant and the person adjudicating the application before a decision is reached on the application.

Recommendation 4.12

The Committee recommends that following an initial denial of an application for CPP(D) benefits, HRDC should automatically put in place a reconsideration procedure. This reconsideration should be conducted by a panel consisting of two health care
practitioners — one of whom should be a physician. This panel should have person-to-person contact with the applicant.

Recommendation 4.13

The Committee recommends that HRDC offer and provide translation services to all applicants who speak neither English nor French to assist them with their CPP(D) application.

Recommendation 4.14

The Committee recommends that the Office of the Commissioner of Review Tribunals (OCRT):

a.	include in the request for appeal form a question asking all appellants to identify any third party that required them, for whatever reason, to appeal a denial of benefits to the OCRT; and

b.	charge such third party the cost of processing each unsuccessful appeal.

Recommendation 4.15

The Committee recommends that the Office of the Commissioner of Review Tribunals appoint outreach officers who will personally contact every appellant to explain the appeal process, the resources that might be available to assist them in their appeal, and their right to use representatives in the appeal process. This would also provide an opportunity to explain a decision respecting the applicant’s eligibility for disability benefits under the CPP.

Recommendation 4.16

The Committee strongly recommends that HRDC fund disability organizations (e.g. independent living centres) to help them provide advocacy and service delivery supports to individual CPP(D) applicants and appellants.

Recommendation 4.17

The Committee recommends that HRDC work with the federal Department of Justice to determine to what extent automatic legal assistance can be provided to all those who appeal CPP(D) denials at the Office of the Commissioner of Review Tribunals or the Pension Appeal Board in order to ensure that appropriate representation is available for appellants.

CHAPTER 5: THE ADEQUACY OF CANADA PENSION PLAN DISABILITY BENEFITS

Recommendation 5.1

The Committee recommends that Human Resources Development Canada return to the pre-1998 method for calculating CPP(D) benefits and retirement benefits for CPP(D) recipients.

Recommendation 5.2

The Committee recommends that Canada Pension Plan Disability payments commence on the day that Human Resources Development Canada qualifies a person to be eligible for CPP(D) benefits.

Recommendation 5.3

The Committee recommends that the Technical Advisory Committee on Tax Measures for Persons with Disabilities established by the Minister of Finance examine how best to adjust CPP contributions deducted for tax purposes in order to remove amounts paid in respect of disability benefits and thereby eliminate the taxation of Canada Pension Plan Disability benefits. This measure should be fully anticipated in the next federal budget and be in place by the beginning of the fiscal year 2004-2005. Once in place, similar treatment should be afforded to all Canada Pension Plan Disability benefits in pay.

CHAPTER 6: THE CANADA PENSION PLAN AND OTHER DISABILITY INCOME SUPPORT PAYMENTS: THE NEED FOR BETTER INTEGRATION

Recommendation 6.1

The Committee recommends that Human Resources Development Canada, in conjunction with the Canada Customs and Revenue Agency, prepare a plain language brochure that outlines the tax treatment afforded long-term disability earnings replacement plans. This brochure should also indicate how these plans operate vis-à-vis the CPP(D) with, and without, an assignment of benefits agreement between Human Resources Development Canada and private insurers.

Recommendation 6.2

The Committee recommends that:

a.

Human Resources Development Canada work vigorously with private insurers, Workers’ Compensation Boards and other providers of disability income support program to ensure that integration improves the economic welfare of CPP(D) recipients, especially in instances where the level of disability income support payments to these individuals is low;

b.	HRDC broaden the membership of its working group with provincial/territorial social assistance providers to include all disability income providers; and

c.	This working group report annually to the advisory group we recommended be created (see Recommendation 2.2).

Recommendation 6.3

Until such time that CPP(D) benefits are non-taxable, (see Recommendation 5.3), the Committee recommends that all payments made under any assignment of benefits agreement, particularly those pertaining to re-imbursement payments, be paid in after tax funds using a standard deduction.

Recommendation 6.4

The Committee recommends that Human Resources Development Canada examine comprehensively the impact of cost of living adjustments made to CPP(D) benefits that are integrated with other disability income support plans. If it is determined that the benefit of indexation on CPP(D) benefits is not being realized fully by CPP(D) beneficiaries, the Government of Canada must ensure that the full impact of cost of living adjustments flows directly to CPP(D) beneficiaries.

Recommendation 6.5

The Committee recommends that the Government of Canada enact the necessary legislative amendments to render illegal the offsetting of CPP(D) benefits paid to dependent children of a CPP(D) recipient.

Recommendation 6.6

The Committee recommends that the necessary amendments be made to the Employment Insurance Act and Regulations to ensure that CPP(D) benefits are not treated as earnings in instances where CPP(D) beneficiaries are entitled to Employment Insurance compassionate care benefits.

CHAPTER 7: RETURNING TO WORK UNDER CANADA PENSION PLAN DISABILITY

Recommendation 7.1

The Committee recommends that Human Resources Development Canada double its budget of $4.6 million (2002-2003) for the Vocational Rehabilitation Program and begin to measure the long-term impact of this program on the success of clients’ return to work and the total economic benefits associated with these outcomes.

Recommendation 7.2

The Committee recommends that Human Resources Development Canada undertake a pilot project to measure the impact of increasing the amount associated with substantially gainful occupation (SGO) to 125% of annual maximum CPP(D) benefits. In addition to measuring the impact of this measure on program costs, this pilot project should study the benefits and work incentive effects of a gradual reduction in CPP(D) benefits as the earnings of project participants exceed the experimental SGO threshold following the return-to-work trial period.

Recommendation 7.3

The Committee recommends that Human Resources Development Canada extend the three-month work trial period to six months and provide an immediate and automatic reinstatement of benefits for two years following a successful return to work.

Recommendation 7.4

The Committee recommends that the federal government create the necessary conditions to permit Human Resources Development Canada to implement pilot projects that test various approaches for integrating CPP(D) with other disability income and supports, including the medical community, to strengthen incentives for beneficiaries to return to work.

Recommendation 7.5

The Committee recommends that the federal government increase expenditures under Part II of the Employment Insurance Act as well as extend eligibility for these benefits to a much broader population than is currently captured under the definition of “insured participant.” Moreover, Part II benefits should be treated as pensionable earnings for the purpose of determining CPP(D) eligibility.

CHAPTER 8: NEXT STEPS

Recommendation 8.1

The Committee recommends that the Department of Finance and the Department of Human Resources Development collaborate in the preparation of background documents that can be provided to the Subcommittee on the Status of Persons with Disabilities by 1 November 2003. Officials from the two departments will be asked to appear as witnesses to present the results of their research. The background documents should :

a.	outline the issues, options and costs to disaggregate CPP(D) contributions into two components: one for retirement benefits and the other for disability benefits;

b.	discuss the possibilities and costs for a single point of entry for federal/provincial disability income programs; and

c.	examine various options and costs for alternative income programs. These options should include:

•	applying the national child benefit model to a disability income program;

•	examining the applicability of programs in other countries such as the Netherlands where non-categorical income programs integrate disability into a broader set of programs based on overall criteria regarding employability; and

•	incorporating partial benefits into the Canada Pension Plan Disability program.

d.	Examining the options to establish a case-management system of addressing problems that arise because of the lack of integration between CPP(D) and other disability income support programs (e.g. workers’ compensation, social assistance and long term disability).

Recommendation 8.2

In order to monitor the implementation of the recommendations in this report, the Committee recommends that for the next five years, the Departmental Performance Report of the Department of Human Resources Development Canada contain a section setting out progress in addressing our recommendations.