Can a Failed Business Count as a Work Attempt for CPP Disability?

Can a Failed Business Count as a Work Attempt?

In this case, the Minister agreed that it did. KF v Minister of Employment and Social Development, 2026 SST 592 (CanLII), records a settlement. The Minister conceded that the appellant’s recruitment business, which operated at a loss, in part because she drew a modest salary from it, qualified as a failed work attempt. Appeal Division member Neil Nawaz endorsed the parties’ agreement and allowed the appeal. The decision does not set a binding rule for other claims.

What Happened in This Case?

The appellant is a 60-year-old former nurse and long-term care administrator. She was terminated from her last job as a nursing home consultant in January 2022. She later made an unsuccessful attempt to start a healthcare recruitment firm. That came to an end in early 2025, and she has not worked since.

She applied for a CPP disability pension in February 2025, the month after she ended her recruitment business. She said she could no longer work because of medical conditions that included arthritis, degenerative disc disease, fibromyalgia, anxiety, and depression.

Service Canada denied the application because, in its view, she did not have a severe and prolonged disability. The General Division held a hearing by teleconference and dismissed the appeal. It found that, despite her medical conditions, she remained regularly capable of substantially gainful employment.

She requested leave to appeal to the Appeal Division. Leave was granted in August because a colleague saw an arguable case that the General Division had made an error. The Minister’s representative then asked the Appeal Division to schedule a settlement conference. At that conference, the representative presented an offer, which the appellant accepted. The parties asked the member to prepare a decision that reflects their agreement.

What Conditions Did the Agreement Address?

The Minister conceded that she developed a severe and prolonged disability as of February 2025. She agreed with that concession. Member Neil Nawaz endorsed the agreement after reviewing the record. The conditions referred to in the endorsement were osteoarthritis of the knees, degenerative disc disease, hip bursitis, fibromyalgia, chronic pain syndrome, carpal tunnel syndrome, gastro-esophageal reflux disorder, sleep apnea, asthma, and hypertension.

As a result of those conditions, she experiences pain in her back, knees, hands, and feet. She is unable to sit, stand, or walk for prolonged periods. She has persistent fatigue, reduced stamina, and cognitive impairment, including impairment of her memory and concentration. The endorsed reasons say those conditions and symptoms, regarded in their totality, combine to render her incapable of regular performance in a competitive work environment. They also note that she had taken reasonable steps to get better by submitting to carpal tunnel surgery, taking medication, receiving physiotherapy, and using a CPAP device. The member was satisfied that she is regularly incapable of a substantially gainful occupation.

How Did the Agreement Treat the Recruitment Business?

The agreement treats the recruitment business as a failed work attempt because it operated at a loss, in part because she drew a modest salary from it. The Minister conceded that characterization, and the Appeal Division endorsed it. The decision does not say that every self-employment attempt will be treated the same way.

Our CPP disability lawyers can discuss how a work attempt is described in a claim. Further background is on our Burlington CPP disability page.

When Does the Pension Start?

The Appeal Division allowed the appeal in accordance with the parties’ agreement. The appellant became disabled as of February 2025. Because of the four-month waiting period under section 69 of the Canada Pension Plan, her CPP disability pension starts as of June 2025.

What Did the Agreement Say About the Coverage Period?

The endorsed reasons note that her CPP disability coverage period will end in December 2027. As of the decision, she is 60 years old and, although she has a good education and a long work history, her vocational background is narrow. Those reasons say that profile makes her a poor candidate to retrain or pursue new career opportunities.

What If the General Division Already Dismissed the Appeal?

In this case, the General Division dismissed the appeal. Leave was granted in August because a colleague saw an arguable case of a General Division error. The Minister then asked for a settlement conference, the parties reached an agreement, and the Appeal Division endorsed it.

The Appeal Division can allow an appeal, return it, or, as here, endorse a settlement the parties reach at a settlement conference.

If you are considering an appeal, our team handles CPP disability appeals and can review the General Division’s reasons with you.

Questions and Records to Discuss With a Lawyer

• What medical records describe the conditions and the limits on sitting, standing, walking, stamina, memory, and concentration?
• If there was a self-employment attempt, what records show whether the business operated at a loss and whether a salary was drawn from it?
• What date is given as the end of the CPP disability coverage period?
• What written reasons did Service Canada or the General Division give for the denial?
• If the General Division dismissed an appeal, was leave granted, and did the Minister ask for a settlement conference?

If you have questions about a CPP disability denial or appeal, the team at UL Lawyers is available to discuss your situation. Reach out through /connect to speak with someone about your circumstances.

---

This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.