Courts must consider whether woman’s condition affected the capacity to apply for disability benefits
The Federal Court of Appeal has set forth the test of incapacity for a claim of disability pension under the Canada Pension Plan, highlighting the consideration of whether the ability to engage in other activities affects the applicant’s capacity to form or express an intention to apply for the disability benefits during the period.
In Blue v. Canada (Attorney General), 2021 FCA 211, Cate Blue applied for a Canada Pension Plan disability pension in May 2016, which was granted with payments starting June 2015, the maximum period of retroactivity ordinarily available under the Plan. On reconsideration, Blue argued that she is entitled to a longer period of retroactive entitlement as permitted by the Plan, since her post traumatic stress disorder and other psychological conditions rendered her incapable of forming or expressing the intent to apply for the pension prior to May 2016.
The general division of the Social Security Tribunal accepted Blue’s arguments and extended the period to April 2004. Applying the test set forth in Sedrak v. Canada (Social Development), 2008 FCA 86 – whether the applicant had the capacity to form or express the intent to make an application for disability benefits – the general division concluded that due to Blue’s psychological condition, she had a restricted incapacity and was unable to apply for the disability benefits until there had been a significant improvement in her condition.
The tribunal’s appeal division reversed this decision, stating that the general division applied the wrong legal test. Since Blue was able to make other life decisions, such as raising her child and managing her finances, the appeal division concluded that she was not incapable of applying for disability benefits.
On appeal, the court disagreed with the appeal division.
The test for incapacity, said the court, involves the consideration of the applicant’s evidence as to the nature and extent of her physical and mental limitations, other evidence in support of their claim for incapacity, evidence of other activities engaged during the relevant period, and the extent to which these activities cast light on the applicant’s capacity to form or express an intention to apply for disability benefits during that period.
Noting the unusual nature of this case, the court said that “in many cases, the ability of an individual to carry on ordinary life activities may well be indicative of their capacity to formulate or express the intent to apply for a disability pension.”
In this case, however, the court found that Blue’s serious, narrowly focused disability, with both her trauma and mental health arising out of or engaging with hospitals, the medical profession and persons in authority, had precluded her from formulating the intent to apply for the disability pension during the relevant period. Thus, the court allowed the appeal and reinstated the general division’s decision.
