Background
Under the Pension Act, rates of pensions and allowances, including disability pensions, are adjusted (“escalated”) annually.
In 2017, the Office of the Veterans Ombudsman (OVO) completed an analysis of historical escalations and identified a discrepancy. The OVO released their findings publicly in November 2018.
VAC issued corrective payments for those affected. Each corrective payment scenario was different, however most payments were approximately a few hundred dollars.
Veterans and dependents were paid automatically. If you are an estate representative or are legally entitled to inherit the assets of a deceased benefit recipient, (and have not applied for the corrective payment), you can still apply.
Questions and Answers
- How many individuals were affected by this issue?
- Will individuals affected by this issue be reimbursed for this?
- I am pretty sure I was affected by this. Do I need to apply for the corrective payment?
- What happens if the benefit recipient is deceased?
- I am legally entitled to inherit the assets of a deceased benefit recipient. How do I apply for a corrective payment?
- Can I get an estimate of the amount of the Corrective Payment owing on the deceased individual’s account?
- Will my payment include interest?
Q1. How many individuals were affected by this issue?
A1. In 2018, we found that upwards of 270,000 individuals, including CAF and RCMP members, Veterans, survivors and dependents were affected.
Q2. Will individuals affected by this issue be reimbursed for this?
A2. Yes, the vast majority of corrective payments were issued in 2019-2020. Most individuals received a few hundred dollars, but each payment scenario was different.
Q3. I am pretty sure I was affected by this. Do I need to apply for the corrective payment?
A3. If you were affected and were currently receiving a pension or other benefits that we administer, a corrective payment was issued automatically.
If you were affected but no longer receive VAC benefits, we may need you to provide updated contact information so that we can issue the payment.
Q4. What happens if the benefit recipient is deceased?
A4. If a benefit recipient is deceased, a corrective payment may be paid to their estate, or, if they apply, to a person who is legally entitled to inherit (or “succeed to”) their assets.
We generally do not maintain current information for representatives of estates so we may need updated contact information so that we can issue the payment to the estate. You may also have to provide a copy of the deceased benefit recipient’s death certificate and evidence that shows you are the legally appointed executor or other representative of the estate.
If you are legally entitled to inherit the assets of a deceased benefit recipient, you may apply to have a corrective payment paid to you. We need an application before a payment can be issued so that we can ensure you are legally entitled to receive it. Payments will be issued as applications are received and granted.
Q5. I am legally entitled to inherit the assets of a deceased benefit recipient. How do I apply for a corrective payment?
A5. You can apply via an online application form, where you can also upload the required supporting documents, or by using a paper application and sending us hard copies of these documents. To apply, you will need to provide certain information and documents, including:
- Deceased’s permanent residence at time of death, place and date of death, and other identifiers (Service number or Regimental Number, and VAC File number or K number).
- Deceased’s death certificate
- Deceased’s will (if they died with a will)
- Release signed by all other persons legally entitled to inherit (or “succeed to”) the assets of the deceased (form provided in application)
- Proof of your identity
Q6. Can I get an estimate of the amount of the Corrective Payment owing on the deceased individual’s account?
A6. You can now request an estimate via the online portal, available through our website.
Q7. Does my payment include interest?
A7. No, the payment does not include interest.