Disability Covered By Government Pension Plan

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As we mentioned in the previous article, most working people are covered under government insurance plan. In this article, we will discuss how government pension plan covers in case of disability of working people. These plans provide death benefits, income for surviving spouses and dependent children as well as disability income benefits for qualified member.
In order to receive the disability income from government pension plan, working people must
1.Be disabled, according to the definition of disability contained in the Goverment pension legislation.

2. Have contributed to government either
a) In two of the last three years or
b) Five of the last 10 years

3. Be under 65 years old

4. Not have received a government retirement pension for longer than 12 months.

The disability must be a physical or mental impairment that is both severe and prolonged:
Severe means the inability to pursue any substantially gainful employment and prolonged means that such disability is likely to be of indefinite duration or is likely to result in death.
Benefits begin after a three-month waiting period. They consist of a flat amount plus an earnings related amount, which equals 75% of the contributor's retirement pension. Also an addition flat amount is paid for each dependent child. Disability benefits are payable monthly and the amounts are indexed to go up each year according to increases in the Consumer Price Index.

This is payable only until age 65 or prior death or recovery. At age 65 the disability pension is replaced by the retirement pension.

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