Pension for Life and Consultation on Veterans in Crisis Strategy
Advisory Group on Families
Service Excellence Advisory Group
Monday, March 12, 2018
13:00-15:00 (EST)
Participants
Policy Advisory Group Members
- Major (Retired) Mark Campbell
- Brian Forbes, National Council of Veteran Associations in Canada (Co-chair)
- Master Warrant Officer (Retired) William MacDonald
- Rear Admiral (RAdm) John F. Newton, Canadian Armed Forces
- Brigadier General (Retired) Joe Sharpe
- Commodore (Retired) Andrea Siew (Co-chair)
- Brad White, Royal Canadian Legion
Regrets
- Luc O’Bomsawin, Aboriginal Veterans Autochtones
Office of the Minister of Veterans Affairs
- Honourable Seamus O’Regan - Remarks at 14:00 (EST)
- Paul McCarthy, Director of Policy
- John Embury, Director of Communications
- Laurel Chester, Stakeholder Relations
- Bernard O’Meara, Stakeholder Relations
Veterans Affairs Canada (VAC) Officials
- Bernard Butler, Assistant Deputy Minister, Strategic Policy and Commemoration (VAC Co-chair)
- Faith McIntyre, Director General, Policy and Research Division
- Katherine Spencer-Ross, Director, Stakeholder Engagement and Outreach
- Karen Rose, Senior Analyst, Stakeholder Engagement and Outreach
- Jennifer MacLeod, Team Lead, Communications
Presenter – Veterans in Crisis
- Sylvie Thibodeau-Sealy, Director, Veterans Priority Programs Secretariat
Observer
- Sharon Squire, Deputy Ombudsman, Executive Director, Office of the Veterans Ombudsman
Opening Remarks
The VAC Co-chair introduced the agenda and indicated that Minister O’Regan would join later in the call. He noted that the teleconference was a follow-up to the briefing the group received in advance of the December 20, 2017 Pension for Life announcement. The member co-chairs noted that the teleconference was a good first step to gain a better understanding of Pension for Life and provide informed feedback, although concerns were raised about the effectiveness of a teleconference to go through important details surrounding Pension for Life.
Pension for Life Presentation by Director General, Policy and Research
The Director General of Policy and Research Division made a presentation about Pension for Life, guided by the PowerPoint presentation which had been provided to the groups in advance of a teleconference. The Director General explained the three key benefits: Pain and Suffering Compensation, Additional Pain and Suffering Compensation and the Income Replacement Benefit. She also noted the new programs and services to be implemented on April 1, 2018 as a result of Budget 2017: Education and Training Benefit; Caregiver Recognition Benefit; Redesigned Career Transition Services; Veterans Emergency Fund; Veteran and Family Well-being Fund; Veteran Family Program; and the end of time limits for vocational rehabilitation.
There were questions and discussions throughout her presentation, highlights of which are provided below:
Terminology
Question/Comment: The terminology used to describe new benefits creates confusion in the Veteran population because the benefits described as non-economic have dollar amounts attached. While it may be understood by government officials, outside of government it is not necessarily understood and creates confusion for Veterans and their families.
Response: This terminology is used to indicate the difference between a taxable benefit (economic benefit) and a non-taxable benefit (non-economic - to acknowledge pain and suffering).
Pain and Suffering Compensation (PSC)
Question/Comment: How was the amount of $1,150 was determined, what rate of return was used, and why would a Veteran choose a monthly allowance over a lump-sum?
Response: The $1,150 maximum monthly amount was determined to be an appropriate amount of monthly compensation for pain and suffering. The example of an 18-year-old Veteran was provided, who will receive the maximum amount and will receive this benefit over their lifetime. In this example, if the Veteran chooses to take the monthly option, they will receive over double what they would have received had they taken the lump sum payment.
The monthly amount is important because it will ensure that individuals have this payment on a monthly basis, for life. Instead of dividing the lump sum into monthly payments, Veterans will be offered the opportunity to receive more, which will hopefully encourage them to choose the monthly option.
VAC also looked at comparable countries, such as Australia, when determining the monthly maximum, and found that $1,150 is a comparable amount in other jurisdictions.
The monthly payment option provides compensation and stability on a long-term basis, especially for younger members and Veterans with service-related disabilities. Each Veteran can make a personal decision that best meets their individual needs on whether to select a lump sum payment or the monthly allowance.
Question/Comment: Is there an option of receiving a portion of this compensation benefit as a lump sum and the other portion as a monthly amount?
Response: It was explained that this option was explored but would add significant complexity to administer in an environment where the goal is to reduce complexity. It was noted that you can choose to cash out the benefit and receive the balance owing at any time. This will be the difference between the monthly amount already paid and the applicable lump sum amount. Also when a Veteran is re-assessed and the amount increased (for example an additional 5 % upon reassessment) the Veteran could opt to cash out this amount, but would need to choose this option before the re-assessment amount goes into the pay system.
The Department encourages Veterans to seek independent financial advice in order to determine the best option for them. VAC will pay up to $500 for Veterans to access financial counseling or advice services from a provider of their choice.
The significant upfront costs such as house renovations and vehicle modifications associated with a severe disability was highlighted as an example when this option would be important and was noted by the Department.
Additional Pain and Suffering Compensation - Monthly Payment
Question/Comment: On the use of gender in determining what the additional monthly payment would be for those who had already received the Disability Award and may be eligible for an additional monthly amount that would be payable for life.
Response: It was explained that in order to benefit from the introduction of the (PSC), VAC will provide Veterans who have already received the Disability Award since 2006, the opportunity to potentially receive a monthly amount.
The calculation will consider: The amount that the Veteran already received from Veterans Affairs Canada (VAC); the monthly amount the Veteran would have received so far (had a monthly payment option been available); and a life annuity calculation, which takes into consideration individual circumstances to calculate any offsets to the monthly payment.
It was explained that age and gender are a consideration as the calculation used to convert lump sum amounts into monthly amounts must incorporate mortality rates which are sex dependent. Mortality rates take sex into consideration because life expectancy varies between men and women. It was explained that the calculation is the same for male and female; it is the conversion to the monthly amount where mortality rates are used.
Question/Comment: A calculation will be done automatically for an estimated 74,300 Veterans who already received a disability award before April 1, 2019 and it is anticipated that 60% will benefit from an additional monthly amount. There was a question as to why the other 40% would not be eligible to receive this payment.
Answer: It was explained the 40% represents Veterans whose disability was assessed in the low range and depending on individual circumstances there may be no additional monthly amount payable.
Question/Comment: There was a discussion on the amounts received under the present Career Impact Allowance and Career Impact Allowance Supplement in comparison to the new Additional Pain and Suffering Compensation. Concerns were also raised that, given that the grade level of those now in receipt of the Career Impact Allowance would be protected, Veterans post 2019 would be compensated differently for pain and suffering creating a third class of Veterans after April 1, 2019 (Veterans under the Pension Act, New Veterans Charter Veterans and now Pension for Life Veterans).
Answer: It was explained that the Department will automatically move Veterans in receipt of Career Impact Allowance (a taxable benefit) over to the Additional Pain and Suffering Compensation (a non-taxable benefit) and they will move over at the same Grade level (1, 2 or 3) and will be paid the corresponding monthly amount for the new benefit. Therefore, while at face value, the dollar values for Grades 1, 2 and 3 appear lower, Veterans will take home a comparable amount.
It was also explained that no Veteran in receipt of the Career Impact Allowance Supplement will receive less than the amount(s) of Earnings Loss Benefit, Retirement Income Security Benefit, and Career Impact Allowance Supplement they were eligible for prior to the implementation of the Income Replacement Benefit. These amounts will be protected on coming into force and will be indexed on a go forward basis.
As for the post 2019 Veterans, participants were encouraged to look at Pension for Life as a package that provides an appropriate level of financial support, in addition to the wellness programs. The intent is not to do a dollar for dollar comparison of the amounts for pain and suffering under the different legislation. The Pension for Life benefits provide recognition, income support, better overall stability and a reasonable standard of living for Veterans living with a disability due to their service to Canada.
Pension for Life addresses the most pressing issue, which was to raise the overall level of income for the most vulnerable Veterans. Approximately 80% of Veterans have no difficulty in transitioning to civilian life, and do not require the same support as those with significant disabilities and difficulties in re-establishment. This is what the Government of Canada was directed to accomplish and supports the recommendations of the Standing Committee on Veterans Affairs (ACVA) to direct programming to the most seriously disabled Veterans.
Veterans’ Stories - Scenarios
The six Veterans’ stories (scenarios) from the Pension for Life section on the VAC website were shared with the members with additional information provided to identify what these individuals would receive under the three programs - Pre-2006 Pension Act, New Veterans Charter pre-Budget 2016 and under Pension for Life 2019.
The scenarios generated significant discussion. Questions were raised about other factors, other programs, etc. that should have been considered and captured in each of the scenarios. This included programs such as Attendance Allowance under the Pension Act, Earnings Loss Benefit at 90% and not 75% under the New Veterans Charter, and why the scenarios reflected the pre- Budget 2016 benefits.
It was noted that sufficient time for a review of the scenarios by the members would be needed. To address, it was decided that a further meeting with the co-chairs would be organized to review and discuss some of the detailed questions.
One of the member co-chairs restated the Policy Advisory Group’s key recommendation under Chapter One of their report which was presented at the October 5 and 6, 2016 Stakeholder Summit, that takes the best parts of the |Pension Act and the New Veterans Charter to produce a form of lifetime financial security.
Minister O’Regan
Minister O’Regan joined the teleconference and indicated that he had been listening to their discussions for a short period. He asked questions related to the Ministerial Advisory Groups and asked the members for their feedback on the following three areas: how best to move forward with the Advisory Groups; whether the Advisory Groups are aligned on the correct themes; and whether other voices should be at these tables? He encouraged the members to get in touch with him directly with their feedback.
Veterans in Crisis Presentation
The Director of Veterans Priority Programs Secretariat provided an overview of the work to date on the Veterans in crisis file. The Strategy has yet to be launched officially, but many action efforts are already underway. The intent of the discussion was to seek input from the various groups. It was noted that the work on the Veterans in Crisis Action Plan is driven by a task force that provides regular input and feedback. It is a collaborative effort to address the complex issue of homelessness. The key themes noted were:
- Lead and Engage: Improve Collaboration and Leadership
- Find: Improve Outreach and Identification
- Assist: Improve Mechanisms to Assist Homeless Veterans and Veterans in Crisis
- Prevent: Prevent Veteran Homelessness through optimizing Veteran Well-Being
The PowerPoint presentation provided to the groups also has key action items for each theme, and the groups were asked to provide their input and comments.
Highlights of the discussion included:
- The significant work that the Royal Canadian Legion and other organizations, such as VETS Canada and Soldiers Helping Soldiers, are doing to address the issue of homeless Veterans.
- The importance of partnerships and the need for all organizations to collaborate and cooperate.
- The need to identify the organizations working on homelessness at the various levels – community, regional, provincial, national, etc. and to understand what the various organizations are doing to support homelessness.
- The suggestion that a capacity structure be developed to better understand who is assisting and their capacity. The idea being that in any given scenario the matrix could be consulted to help identify who is best positioned to help based on the circumstances presented for each case.
- There was a caution about setting reachable goals, such as creating a strategy with a goal to reduce Veteran homelessness and not eliminate homelessness amongst Veterans.
- Members were encouraged to provide additional comments through the Department’s Engagement mailbox.
Closing Remarks from Co-Chairs
The member co-chairs indicated that they welcome this type of dialogue and their expectation is that there is still an opportunity for input and improvement. They noted that a meeting to complete an in-depth review and discussion with the Department on the scenarios will be welcomed and helpful to understand the Pension for Life.
The group was thanked and the meeting was adjourned.
Follow-up: A meeting between the co-chairs was noted as a next step.