The Financial Benefits Program provides economic support to eligible Canadian Armed Forces (CAF) Veterans, survivors, spouses/common-law partners and dependants for the economic impact that a military career ending and/or service-related injury or death can have on a Veteran's ability to earn income, advance in a career or save for retirement. Support is provided to those approved for the Rehabilitation Program; those who have completed the program and have not yet found employment; those who were eligible for the program but are unable to participate due to permanent and severe impairment; and those who have received a Disability Award for a physical or mental condition which causes permanent and severe impairments for which rehabilitation services have been approved. Compensation is provided in the form of monthly income support payments.
Earnings Loss Benefit
The Earnings Loss Benefit Program recognizes the economic impact a military career-ending or service related disability may have on a Canadian Armed Forces Veteran's ability to earn income following release from the Canadian Armed Forces. To meet their basic needs, eligible CAF Veterans participating in Veterans Affairs Canada's Rehabilitation Program are provided with temporary income replacement in the form of a monthly allowance so that a participant's income does not fall below 90% of gross pre-release military salary. Where a Veteran who had been participating in the Rehabilitation Program is not able to participate in suitable gainful employment, the support continues until the Veteran reaches the age of 65. April 1, 2019, Pension for Life (PFL) was introduced. As a result, Earnings Loss Benefit is one of the six financial benefits replaced by the Income Replacement Benefit.
Table 7.1 Earnings Loss Benefit RecipientsFootnote 1 and Expenditures
| Earnings Loss Recipients and Expenditures | Actuals as of March 31, 2022 | ||||
|---|---|---|---|---|---|
| 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | |
| Temporary Recipients | 9,193 | 7,729 | - | - | - |
| Extended Recipients | 5,677 | 9,805 | - | - | - |
| Total: Recipients (Veterans and Survivors) | 14,870 | 17,534 | - | - | - |
| Expenditures (in $ millions) | $420.1 | $527.7 | $13.9 | $7.0 | $7.7 |
| Earnings Loss Recipients and Expenditures | ForecastFootnote 2Footnote 3Footnote 4 | ||||
|---|---|---|---|---|---|
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | |
| Temporary Recipients | - | - | - | - | - |
| Extended Recipients | - | - | - | - | - |
| Total: Recipients (Veterans and Survivors)Footnote 5 | - | - | - | - | - |
| Expenditures (in $ millions) | $6.5 | $5.0 | $2.5 | $2.5 | $2.5 |
Source: Chief Financial Officer and Corporate Services Branch
Income Replacement Benefit (IRB)
April 1, 2019, Pension for Life (PFL) was introduced. Pension for Life includes three new benefits: Pain and Suffering Compensation; Additional Pain and Suffering Compensation; and Income Replacement Benefit.
The Income Replacement Benefit (IRB) is a monthly taxable financial benefit that compensates Veterans for the economic impact that health problem(s), resulting primarily from service have on their ability to earn income. It provides financial support while participating in rehabilitation services. The benefit is available to survivors and/or orphans who qualify.
Table 7.2 - Income Replacement Benefit: Recipients and Expenditures
| Income Replacement Benefit (IRB)Footnote 6 | Actuals as of March 31, 2022 | ||||
|---|---|---|---|---|---|
| 2019–20 | 2020–21 | 2021–22 | |||
| IRB Recipients < 65 years of age | |||||
| Veterans | 20,247 | 22,551 | 24,437 | ||
| Survivors/Orphans | 578 | 659 | 666 | ||
| IRB Recipients > 65 years of age | |||||
| Veterans | 623 | 970 | 1,343 | ||
| Survivors | 21 | 20 | 41 | ||
| Career Impact Allowance Supplement (CIAS) ProtectedFootnote 7 | |||||
| CIAS Protected | 260 | 220 | 210 | ||
| Total: Recipients | 21,729 | 24,420 | 26,697 | ||
| Expenditures (in $ millions) | $777.5 | $868.4 | $962.9 | ||
| Income Replacement Benefit (IRB) | ForecastFootnote 8 | ||||
|---|---|---|---|---|---|
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | |
| IRB Recipients < 65 years of age | |||||
| Veterans | 26,100 | 27,700 | 29,300 | 30,900 | 32,400 |
| Survivors/Orphans | 810 | 870 | 1,040 | 1,220 | 1,290 |
| IRB Recipients > 65 years of age | |||||
| Veterans | 1,800 | 2,300 | 2,900 | 3,400 | 4,100 |
| Survivors | 50 | 60 | 70 | 80 | 100 |
| Career Impact Allowance Supplement (CIAS) ProtectedFootnote 7 | |||||
| CIAS Protected | 210 | 200 | 200 | 200 | 190 |
| Total: Recipients | 29,000 | 31,200 | 33,500 | 35,800 | 38,200 |
| Expenditures (in $ millions) | $1,114.0 | $1,245.2 | $1,371.2 | $1,498.8 | $1,628.6 |
Source: Chief Financial Officer and Corporate Services Branch
Veteran and Family Well-Being Fund
The Veteran and Family Well-Being Fund provides funding to organizations that conduct research, develop or implement innovative programs that improve the well-being of Veterans and their families.
Table 7.3 Veteran and Family Well-Being Fund: RecipientsFootnote 9 and Expenditures
| Veteran and Family Well-Being FundRecipients & Expenditures | Actuals as of March 31, 2022 | ||||
|---|---|---|---|---|---|
| 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | |
| Recipients (Organizations)Footnote 10 | - | 21 | 32 | 22 | 63 |
| Expenditures (in $ millions) | - | $3.0 | $4.8 | $7.0 | $8.0 |
| Veteran and Family Well-Being Fund Expenditures | ForecastFootnote 11 | ||||
|---|---|---|---|---|---|
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | |
| Expenditures (in $ millions) | $7.0 | $7.0 | $3.0 | $3.0 | $3.0 |
Source: Strategic Policy and Commemoration (Actuals and Forecast)
Career Impact Allowance (CIA)
The Career Impact Allowance Program recognizes the economic impact on employment potential and career advancement caused by severe and permanent service-related disabilities. The program ensures that eligible Canadian Armed Forces (CAF) Veterans with severe permanent impairments have an income sufficient to meet basic needs. A monthly allowance is payable to CAF Veterans who received a Disability Award for physical or mental health problems that are creating a permanent and severe impairment and for which rehabilitation services have been approved. As of April 1, 2017, a new grading scheme was implemented for CIA, which gave access to higher grade levels for some clients. The result is that a greater proportion of clients are in Grades 1 and 2 than previous to the change. April 1, 2019, Pension for Life (PFL) was introduced, as a result, the Career Impact Allowance has become the Additional Pain and Suffering Compensation.
The other part of the Career Impact Allowance that recognizes and compensates Veterans for their barriers to establishing themselves in post-service life as a result of service-related permanent and severe impairment will become the new Additional Pain and Suffering Compensation. It will have three grade levels that will result in non-taxable payments to the Veteran for life. This will fall under the Disability Benefits program.
Table 7.4 Career Impact Allowance Recipients and Expenditures
| CIA Recipients and Expenditures | Actuals as of March 31, 2022 | ||||
|---|---|---|---|---|---|
| 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | |
| Recipients (Veterans) | 7,801 | 12,805 | - | - | - |
| Recipients Receiving CIA Supplement | 4,372 | 6,956 | - | - | - |
| Expenditures (in $ millions) | $123.1 | $189.0 | $0.0 | $0.1 | $0.0 |
Source: Chief Financial Officer and Corporate Services Branch
Supplementary Retirement Benefit (SRB) Program
The Supplementary Retirement Benefit Program compensates eligible Canadian Armed Forces (CAF) Veterans for lost opportunities to contribute to retirement pensions because they are unable to work following their release from the Canadian Armed Forces. Veterans must have been assessed as totally and permanently incapacitated during their participation in Veterans Affairs Canada's Rehabilitation Program and eligible for extended Earnings Loss benefits. The benefit, a lump-sum payment equal to 2% of the total amount of Earnings Loss benefits that was paid to the Veteran before income offsets, is generally paid when the Veteran reaches the age of 65. Survivors of Veterans who die as a result of a service-related injury or disease are also eligible for this benefit, payable after the Veteran would have reached the age of 65 years. April 1, 2019, Pension for Life (PFL) was introduced. As a result, the Supplementary Retirement Benefit (SRB) Program, along with the Retirement Income Support Benefit (RISB) have been consolidated into the Income Replacement Benefit under the Income Support Program.
Table 7.5 Supplementary Retirement Benefit Recipients and ExpendituresFootnote 12
| Supplementary Retirement Benefit Recipients and Expenditures | Actuals as of March 31, 2022 | ||||
|---|---|---|---|---|---|
| 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | |
| Recipients (Veterans) | 79 | 151 | 10,333 | 181 | 222 |
| Expenditures (in $ thousands) | $312 | $613 | $40,592 | $909 | $1,375 |
| Supplementary Retirement Benefit Recipients and Expenditures | ForecastFootnote 13Footnote 14 | ||||
|---|---|---|---|---|---|
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | |
| Recipients (Veterans) | 100 | 40 | - | - | - |
| Expenditures (in $ thousands) | $540 | $230 | $0 | $0 | $0 |
Source: Chief Financial Officer and Corporate Services Branch
Retirement Income Support Benefit (RISB)
The Retirement Income Security Benefit provides eligible Canadian Armed Forces (CAF) Veterans and survivors with life-long financial stability for moderately to severely disabled individuals through a monthly income security payment beginning at age 65. This benefit tops up a Veteran’s total annual income to at least 70% of what he or she received in financial benefits from Veterans Affairs Canada. As of April 1, 2019, Pension for Life (PFL) was introduced. As a result, the Retirement Income Support Benefit (RISB), along with the Supplementary Retirement Benefit (SRB) Program have been consolidated into the Income Replacement Benefit under the Income Support Program.
Table 7.6 Retirement Income Support Benefit Recipients and Expenditures
| Retirement Income Support Benefit | Actuals as of March 31, 2022 | ||||
|---|---|---|---|---|---|
| 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | |
| Recipients | 124 | 183 | - | - | - |
| Expenditures (in $ millions) | $0.9 | $1.6 | $0.1 | $0.0 | $0.0 |
| Retirement Income Support Benefit | ForecastFootnote 15Footnote 16 | ||||
|---|---|---|---|---|---|
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | |
| Recipients | - | - | - | - | - |
| Expenditures (in $ millions) | $0.1 | $0.1 | $0.1 | $0.1 | $0.1 |
Source: Chief Financial Officer and Corporate Services Branch
Canadian Forces Income Support (CFIS) Program
The Canadian Armed Forces Income Support Benefit ensures that eligible Canadian Armed Forces (CAF) Veterans have a minimum level of income to meet basic needs while they are engaged in job search activities. The program provides a monthly temporary income support to low income CAF Veterans who have completed Veterans Affairs Canada's Rehabilitation Program and are capable of achieving suitable gainful employment but have not yet obtained employment. This program is also available to survivors or orphans of Veterans in certain circumstances. April 1, 2019, Pension for Life (PFL) was introduced. As a result, Canadian Forces Income Support along with the Income Replacement Benefit, fall under the Income Support Program.
Table 7.7 Canadian Forces Income Support Recipients and Expenditures
| Canadian Forces Income Support Recipients and Expenditures | Actuals as of March 31, 2022 | ||||
|---|---|---|---|---|---|
| 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | |
| Recipients | 78 | 86 | 95 | 106 | 104 |
| Expenditures (in $ millions) | $1.5 | $1.5 | $1.9 | $2.1 | $2.0 |
| Canadian Forces Income Support Recipients and Expenditures | ForecastFootnote 17 | ||||
|---|---|---|---|---|---|
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | |
| Recipients | 110 | 120 | 130 | 130 | 135 |
| Expenditures (in $ millions) | $2.3 | $2.4 | $2.6 | $2.8 | $3.0 |
Source: Chief Financial Officer and Corporate Services Branch
War Veterans Allowance (WVA) Program
The War Veterans Allowance Program is a form of financial assistance available to eligible Veterans, Merchant Navy Veterans, qualified civilians and their survivors, dependants and orphans. In recognition of war service, qualified persons are provided with a regular, monthly income to meet basic needs. Eligibility for War Veterans Allowance is determined by the war time service of a Veteran or qualified civilian, the age or health, family income and residency. As well, as surviving spouse, a surviving common-law partner or orphan may qualify for War Veterans Allowance.
Table 7.8 War Veterans Allowance Recipients
| WVA Recipients | Actuals as of March 31, 2022 | ||||
|---|---|---|---|---|---|
| 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | |
| Veterans | 323 | 274 | 198 | 148 | 124 |
| Survivors | 1,572 | 1,376 | 1,193 | 1,026 | 890 |
| Total: Recipients | 1,895 | 1,650 | 1,391 | 1,174 | 1,014 |
| WVA Recipients | ForecastFootnote 18 | ||||
|---|---|---|---|---|---|
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | |
| Veterans | 90 | 70 | 50 | 40 | 30 |
| Survivors | 790 | 700 | 620 | 560 | 490 |
| Total: Recipients | 880 | 770 | 670 | 600 | 520 |
Source: Chief Financial Officer and Corporate Services Branch
Table 7.9 War Veterans Allowance Expenditures
| WVA Expenditures (in $ millions) | Actuals as of March 31, 2022 | ||||
|---|---|---|---|---|---|
| 2017–18 | 2018–19 | 2019–20 | 2020–21 | 2021–22 | |
| Veterans | $1.1 | $1.2 | $0.7 | $0.5 | $0.4 |
| Survivors | $5.0 | $4.6 | $3.9 | $3.4 | $2.9 |
| Budget Implementation Act Payments | - | $0.0 | $0.0 | $0.0 | $0.0 |
| Total: ExpendituresFootnote 19 | $6.1 | $5.7 | $4.6 | $3.9 | $3.3 |
| War Veterans Allowance (in $ millions) | ForecastFootnote 20 | ||||
|---|---|---|---|---|---|
| 2022–23 | 2023–24 | 2024–25 | 2025–26 | 2026–27 | |
| Veterans | $0.3 | $0.3 | $0.2 | $0.2 | $0.1 |
| Survivors | $2.7 | $2.5 | $2.3 | $2.1 | $1.9 |
| Total: ExpendituresFootnote 19 | $3.1 | $2.8 | $2.5 | $2.2 | $2.0 |
Source: Chief Financial Officer and Corporate Services Branch