Protection for periods out of work that include staying home to raise children
Claire found a job as soon as she completed her university degree. When her daughter Genevieve was born 8 years later, she decided to stay at home to raise her family. Five years later her son Pierre was born followed by another daughter, Melanie, three years after that.
When her youngest daughter Melanie was six years old, Claire decided to return to work. She had been out of the paid work force for 14 years but was very keen on finding a job in her field of study. She found it in 1991.
Seven years later, Claire was diagnosed with Parkinson's Disease. Within a couple of years, she was unable to continue working and left her job.
Being disabled and unable to work, Claire applied for a Canada Pension Plan disability benefit. Her application for disability benefits was approved and she received a letter from the Canada Pension Plan telling her that she would receive $740.87 a month.
Earlier that month, Claire had received a letter from the Canada Pension Plan asking if she had ever been out of the paid work force to raise her children. Since Claire had stayed home 14 years to raise her three children, she decided to complete the form (called the Child Rearing Drop Out Provision) and returned it to the Canada Pension Plan with certified photocopies of her children's birth certificates.
When the Canada Pension Plan received this new information, Claire's disability benefit was recalculated to $917.43 a month.
When Claire turns 65 and applies for her CPP retirement pension, the years she stayed at home with her children and the years that she was receiving a disability benefit will all be removed when calculating her benefit.
Case study summary - Staying at home to raise children
- 1969 - Claire finishes university and finds a job
- 1977 - Claire leaves work after daughter's birth
- 1991 - Claire returns to the paid work force
- 1998 - Claire is diagnosed with Parkinson's disease
- 2000 - Claire applies for a CPP disability benefit
- 2000 - Claire's benefit is re-calculated at a higher amount because years in which she had no earnings were removed from the calculation to increase her benefit