Manitoba Government Claws Back CPP Increases for People with Disabilities, Provoking Outrage

A policy in Manitoba that allows the provincial government to claw back increases in Canada Pension Plan (CPP) benefits for people with disabilities has sparked outrage and calls for change. Calvin Yarush, a 57-year-old man from Dauphin, Manitoba, recently received an increase in his CPP disability pension due to rising costs of living. However, he was shocked to discover that the provincial government would simultaneously reduce his benefits by the same amount.

Yarush, who has been on disability for a decade, expressed frustration at the government’s decision, stating that individuals on disability already face financial difficulties and should not be further disadvantaged by inflation. He highlighted the challenges of living in a small town where resources like food banks and Salvation Army supports are limited.

The CPP benefit is adjusted annually based on the consumer price index. This year, the cost of living increased by 4.4 percent, resulting in a $35 monthly increase for Yarush. However, this increase will not reach his bank account, as the province factors in other sources of income when determining disability assistance benefits.

Disability advocates, including Melissa Graham, the executive director of the Manitoba League of Persons with Disabilities, argue that it is unfair to subject CPP cost of living increases to the same clawback policy. They believe that these increases should be exempt from calculations influencing provincial disability payments.

While the federal Employment and Social Development department clarified that CPP legislation does not specify integration with income assistance or other provincial programs, the responsibility falls onto the province. The spokesperson for Manitoba’s government stated that disability benefits in the province are also indexed to inflation and that users can expect an increase in their payments in July. Approximately 10 percent of those receiving provincial disability benefits also receive CPP benefits.

Yarush, however, contends that it is morally wrong for the NDP government to continue clawing back CPP increases. He argues that if inflation rises, incomes for people with disabilities should rise accordingly, ensuring fairness and equality.

Kristin Annable, a member of CBC‘s investigative unit based in Winnipeg, reported this story.