This section applies to people in one of these three categories:
- Someone 65 years of age or over who is not employed at the time of a car accident.
- Someone 65 years of age or over is employed at the time of a car accident.
- Someone being paid income replacement who subsequently turns 65
People 65 years of age or over who are not employed at the time of an accident are not eligible for income replacement or the Retirement Income Benefit.
People 65 years of age or over who are employed at the time of an accident are entitled to income replacement if injuries sustained prevent them from working. We calculate the income replacement for an employed person who's over 65 in the same way as for other claimants. Five years after the date of the accident, if the person still can't work because of injuries sustained in the accident, their entitlement to income replacement ends and they become eligible to apply for the Retirement Income Benefit.
For claimants 65 years or older, who are employed at the time of the accident, income replacement ends when one of the following occurs:
- The claimant is no longer disabled.
- The claimant has received income replacement for five years.
If a person became eligible for income replacement before they turned 60, income replacement ends when they can return to work or turn 65. In this situation, someone receiving income replacement at the age of 65 will have their entitlement to income replacement end and become eligible for a Retirement Income Benefit.
If a person became eligible for income replacement after they turned 60, income replacement continues for five years, assuming they continue to be unable to return to work because of injuries sustained in the accident. At that point, the person will be eligible for the Retirement Income Benefit.
The Retirement Income Benefit (RIB)
The Retirement Income Benefit took effect on March 1, 1999. It's meant to provide a retirement income, for life, for people who have an ongoing disability because of injuries sustained in an accident and can't adequately save for their retirement years.
To receive the Retirement Income Benefit, you first need to complete an application. The information you give us on your application will help us confirm if you qualify.
The Retirement Income Benefit is based on 70 per cent of your net income minus any other pension income you might receive, including Canada Pension Plan and Old Age Security payments. If your pension income is more than 70 per cent of the net income used in our calculation, you won't receive the Retirement Income Benefit.
The Retirement Income Benefit is adjusted on each anniversary after you became entitled to it, according to the Consumer Price Index.
People who receive the Retirement Income Benefit must:
- Inform us of any changes in their pension income.
- Provide us with a certified copy of their income tax return every year.
People who are receiving income replacement become eligible to receive the Retirement Income Benefit on the latter of:
- The day the claimant reaches their 65th birthday.
- The day that is five years after the day on which their entitlement to receive income replacement has commenced.
For example, a person who began receiving income replacement at age 63 will continue to be eligible for a period of five years. If their entitlement to income replacement continues until the 5th anniversary, that entitlement will then end and they will become eligible for the Retirement Income Benefit.
A person whose income replacement ends prior to the date they become eligible for the Retirement Income Benefit will not receive it.
Walter is a 66-year-old retired factory worker. He's in a car accident and has injuries affecting his ability to sit or stand for long periods of time. Walter doesn't qualify for income replacement or a Retirement Income Benefit because he's over 65 and wasn't working at the time of the accident. There's no income to replace. Walter will receive the other PIPP benefits to which he's entitled.
Martha is 67 and still working as a secretary in a lawyer's office, a job she's had for 35 years. She's in a car accident in May 2012. Her injuries include a serious brain injury that will prevent her from ever returning to work. Martha will receive income replacement based on her salary until May 2017 (five years after the accident). Then, she'll be eligible for a Retirement Income Benefit.