Evaluation of the Additional Pain and Suffering Compensation Program Summary

Evaluation of the Additional Pain and Suffering Compensation Program Summary

Audit and Evaluation Division – Veterans Affairs Canada – June 2024

Evaluation results

Relevance and need

The evaluation finds that there is a continuing and ongoing need for APSC, based on the number of annual applications received and the generally high favourable decision rate. There continues to be a steady increase in APSC recipients year over year. Veterans generally continue to receive the benefit for the remainder of their life, so the recipient base is expected to grow as Canadian Armed Forces members release from service and apply/are approved for service-related disabilities in their post-service life. As of 31 March 2023, the average age of recipients was 52 and there were 26,056 Veterans in receipt of APSC (up from 14,223 in 2019-20).

Demand for the APSC is directly tied to trends in Disability Benefit applications. Data analysis found that Veterans with psychiatric medical conditions, and Veterans with active case plans, are more likely to receive APSC. Higher disability rates and/or multiple medical conditions were also determined to be predictors of APSC. The evaluation identifies a potential gap in program awareness for Veterans with psychiatric medical conditions, especially those without an active case plan. The evaluation also identifies an opportunity to improve program reporting, including trends linked to medical conditions. The evaluation finds that the APSC aligns with government priorities and departmental roles and responsibilities.

Effectiveness

The APSC is a sub-program of the larger Disability Benefit Program, and is included in the Disability Benefits Program Performance Information Profile. The APSC has very limited performance indicators specific to its unique performance within the profile. Given the continued and expected program growth, the evaluation finds that additional performance measures would be warranted to appropriately measure program success.

Efficiency and economy

A number of initiatives were introduced in 2023 which were enabling VAC to enhance operations for the APSC. As the program evolves, the evaluation identifies additional areas that could help enhance operational efficiencies, including enhancements to the online application process and considering more innovative processes to ensure program awareness and determining program eligibility.

Though under 5% of VAC program spending, the amount committed to the APSC program is growing (APSC grew from 2.5% to 4.1% of all departmental expenditures during the evaluation scope period). Program expenditures are expected to continue to grow as the APSC recipient base increases and grade payments are indexed annually (based on Consumer Price Index). Forecasted expenditures indicate continued increase in spending, with expenditures expected to double by 2026-27, reaching over $470 million.

Recommendation Management response and action plan

Recommendation #1:

It is recommended that the Director General, Centralized Operations with the Director General, Information Technology and Information Management, Administration and Privacy, expand regular APSC reporting to incorporate application trend data, including medical conditions/categories.

The Director General, Centralized Operations Division with the Director General, Information Technology and Information Management will develop an APSC data set that will allow for expanded regular reporting on APSC. The data set will include information related to the medical conditions associated with APSC applications, and will allow Centralized Operations the ability to analyze trends associated with the APSC program.

The work will be dependent on analysis of the reporting requirements and needs. Until this detailed work is complete, we will be unable to determine a firm completion date. Once the report updates are outlined, we will submit a business case to confirm funding for any additional work.

Recommendation #2:

It is recommended the Director General, Centralized Operations review and enhance performance indicators and targets specific to APSC to enable the collection of more valuable information in support of measuring program success and program decision making.

The Director General, Centralized Operations Division will work in collaboration with the Director General, Strategic Planning, Results and Cabinet Business to review and update the Disability Benefits Performance Information Profile (PIP), to further develop performance indicators and targets specific to APSC in support of measuring program success.

Recommendation #3:

It is recommended that the Director General, Centralized Operations review the online application process for APSC from a client-centered approach, and with Director General, Service Delivery and Program Management, complete any updates determined to enhance the Veteran clients experience and the efficiency and effectiveness of the application assessment process.

Based on recommended improvements from the Centralized Operations Division, Service Delivery and Program Management and Information Technology impacted teams will add the work to their backlogs for prioritization.

  • Focus will be on revising the online application process for the Program to better reflect a client-centered approach by ensuring the application forms are easy to find and complete.
  • Work will aim to improve the online application functionalities to reduce workload burden from duplicate applications or applications made in error by adding system confirmation/pop-up for APSC applicants (e.g., confirm applicants want to apply despite ineligible service or applicant already has an APSC application awaiting decision).

New resources will be required if this work is to have immediate prioritization. If not urgent or high priority, the work will be absorbed by impacted teams (including My VAC Account, GcCase, Letters/Forms, and Integration) within their capacity over the course of the next two years.

Recommendation #4:

It is recommended that the Director General, Centralized Operations explore and analyze options to improve screening and program awareness for APSC among Veteran clients.

The Centralized Operations Division will explore and analyze options to incorporate innovation within the APSC program for clients. The Centralized Operations Division will further enhance program awareness through a client-centered approach that will screen for clients with the most potential to meet eligibility criteria and link them to APSC program resources.

Program description

  • The purpose of the APSC is to recognize and compensate Veterans for the non-economic loss associated with their service-related permanent and severe impairments that cause barriers to re-establishment.
  • Effective 1 April 2019, the APSC was introduced as part of the Pension for Life benefit package, and the Career Impact Allowance (CIA) was discontinued. Key differences between CIA and APSC are that the CIA was intended to compensate for reduction of employment and earning potential and as an economic benefit it was taxable, whereas APSC is a non-taxable recognition benefit.
  • Approximately 13,400 CIA recipients were transitioned to the APSC in April 2019. As of 31 March 2023, there were 26,056 Veterans in receipt of APSC.
  • Benefit compensation is based on the severity of the Veteran’s impairment. The impairments are classified as being grade 1, 2, or 3 (grade 1 being the most severe level of impairment and compensated at the highest rate). As of January 2023, monthly benefit amounts were $1,691, $1,127, and $563. Total expenditures for APSC in 2022-23 were $224.6 million.
  • Operations and Program Management of the APSC rests within the Centralized Operations Division of VAC.

About the evaluation

Scope and methodology

  • Conducted in accordance with the directive and standards specified in Treasury Board of Canada’s 2016 Policy on Results and VAC’s 2022-23 to 2026-27 Departmental Evaluation plan.
  • Conducted between September 2022 and December 2023.
  • Objective of the evaluation was to assess program relevance, while considering opportunities to improve program effectiveness and efficiency.
  • Covers the time frame from April 2019 to June 2022 (when available and applicable, more up-to-date information was incorporated into the evaluation).
  • Multiple lines of evidence were used including document review, data analysis, observation, and key informant interviews.
  • When the evaluation was launched, the program had been delivered for three years, with the first year being a transition/implementation year. 

Constraints and limitations

  • When evaluating the effectiveness and efficiency of the program, the evaluation team took into consideration that the APSC continues to mature since its inception in 2019.
  • The introduction of the APSC coincided with the release of GCcase, the Department’s new benefit processing system. Several factors related to the new system impacted data retrieval and analysis in support of the evaluation (e.g., system wasn’t ready to process APSC first applications until January 2020 and other decision types are not processed in GCcase).
  • The evaluation team developed a customized methodology to assess APSC first application decisions made in GCcase between 1 April 2019 and 31 March 2023. The methodology allowed the evaluation team to assess the great majority of first application decisions completed and identify decision trends by medical condition. The team was not able to assess other decision types and/or decisions made in the Client Service Delivery Network (secondary departmental system).
  • There were ongoing system functionality changes in GCcase throughout the course of the evaluation, as well as ongoing efforts to update program guidance documents and develop supporting business processes.
  • Veteran National Client Survey results from 2020 and 2022 were reviewed for relevant Veteran feedback and performance measurement information. The evaluation team used the survey results as proxy and did not consult directly with APSC recipients.
  • Gender based analysis (GBA Plus) was incorporated into the evaluation where possible, mostly at an overarching recipient level. VAC is continuing to work to establish more robust GBA Plus data as part of its larger. departmental Data Strategy and Data Action Plan.
  • The APSC falls under the umbrella of the global Disability Benefits program , with performance information tracked mainly at the global program level and limited information collected at the sub-program (APSC) level. Additionally, there was less than three years of performance information to consider at the time of evaluation.
  • Administrative costs for APSC are rolled into the larger Disability Benefit program. Based on this departmental administrative costing methodology, the evaluation team is only able to report on the overall administrative budget and is unable to estimate with an acceptable level of confidence program resource utilization costs for the period under review.

Evaluation report

Evaluation of the Additional Pain and Suffering Compensation Program

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