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More Money in the Hand of Veterans'

October 10, 2012 - Valcartier, QC


The Honourable Steven Blaney, Minister of Veterans Affairs, announced today that effective immediately, the Government of Canada will end the deduction of Veterans' disability pensions when calculating their Earnings Loss and Canadian Forces Income Support benefits.


"We have worked quickly to make these changes to put more money in the pockets of Veterans and their families, including some who haven't been receiving these benefits until now," said Minister Blaney. "This means more help for Veterans and their families where and when they need it most."


Earnings Loss Benefit and Canadians Forces Income Support Benefit recipients who are also in receipt of a disability pension from Veterans Affairs Canada may see a significant increase in their payment in the coming weeks. The Government of Canada will notify all affected recipients in writing with details of the recalculation and change to their payment.


"We're also working quickly to make the necessary legislative changes to the War Veterans Allowance Act so a disability pension will no longer be considered when calculating the War Veterans Allowance benefit," said Minister Blaney. "These changes demonstrate our Government's ongoing determination to meet the needs of Veterans and their families. We're working hard to bring real help where and when it's needed most."


The Government of Canada is proactively reviewing the records of those who are eligible for the Earnings Loss Benefit but not currently receiving a payment due to excess income to determine if they may also benefit.

Earnings Loss and CFIS Offsets
Qs and As

Q1 When will Veterans Affairs Canada (VAC) stop deducting the VAC Disability Pension from the Earnings Loss Benefit?
A1 The changes are in effect as of October 1, 2012.


Q2 Is this effective immediately? Will Veterans begin to see payments right away?
A2 Starting this month, Veterans will receive bigger payments. Any increase in their normal monthly payment will begin in November; however, we wanted Veterans and their families to receive these new amounts right away. We are sending adjustment cheques this month.


Q3 What about Veterans who don't currently receive the Earnings Loss Benefit payment because their income is too high? These changes mean they may now be able to receive a payment. What is VAC doing to correct this?
A3 We are reviewing our records to find Veterans who are eligible for the Earnings Loss Benefit but not currently receiving a monthly payment due to the level of income from the Disability Pension and other sources. We will contact them soon to get updated income information. We can then determine if they can now begin receiving an Earnings Loss Benefit payment.


Q4 Will VAC reimburse Veterans for the Disability Pension amounts deducted from the Earnings Loss Benefit?
A4 VAC ended the Disability Pension deduction from the Earnings Loss Benefit on October 1, 2012. This is applied on a go-forward basis only.


Q5 What took so long to implement these changes? DND ended the SISIP offset on July 1, 2012
A5 DND was able to make a policy change to end the SISIP offset immediately. However, VAC required regulatory changes before the disability pension offsets could be stopped. These regulatory changes required authority from the Treasury Board Secretariat before we could proceed. Normally, regulatory changes can take more than six months. However, we worked hard to expedite the process.


Q6 When will the disability pension offset end for the War Veterans Allowance benefit?
A6 Ending the Veterans Affairs' disability pension offset requires legislative changes to the War Veterans Allowance Act. We're working very quickly right now to move these changes through the legislative process, and expect to see this come into effect in early 2013.


Q7 What about retroactivity?
A7 No decision has been made on retroactive payments at this time.

 

 

Last modified

October 10 2012

 

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