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.
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.