Myth Busting the New Veterans Charter Lump Sum Payment

ohh organization well im not goanna start a rant on them until I can free up a couple of days but im sure you are right WHY they would want that I have no idea but as ive seen form A LOT of organizations of all walks they seem to have an agenda or agendas. if you can find out what it is then you will know WHY. but what I can tell you is what the actual disabled afgan vets think or post 2006 vets think you know the troops themselves who seem to get lost in all the BS politicks and ( maybe the answer to the question posed above ) posturing .

THEY the actual people on this ill conceived NVC don't want a return to the PA and know their is monthly pensions available ( how available is another matter ) they just want one thing.

EQUALITY!!!!!

I get really worried when this guy throws numbers around showing maximums like fantino .

remember when fantino made that $10,000.00 comment and was called on it ???

fantino did not address it but his office did.

they sayed if memory serves me that was based on a major with 27 years service getting the maximum benefits and included his pention. when asked how many vets are collecting maximum benefits they said 4 . that's right 4. hell teen I know 4 just in this are that should be getting the max but they are getting the minimum PIA just like me but then again im on the PA unlike them so im good.

so ya see when people start throwing examples around using maximums it kinda pees me off because although it does jive with the charts its not reality.

the numbers on those charts can not feed the families of our disabled vets.

throwing out examples using maximums will not feed the families of our disabled vets.

what they actually receive either can or cannot feed the families of our disabled vets.

if the buyout is changed to a NVC monthly pension equal to the PA pension that WILL feed the families of our disabled vets.

don't ya think we really aught to do that?????

im just fracking disgusted after reading that tripe and getting physically ill over it .

always question authority

propat

propat believe me I've been at the stakeholder meetings, I post all the stories on Latest news, talk to a lot vet organizations and A LOT of them want the NVC scrapped and the PA brought back.

Like you I'm looking forward to these blogs because the OVO is doing what VAC should have done back in 2006...EXPLAIN THE NVC IN PLAIN BLUE COLLAR TALK!!!

for me this issue is the be all and end all. and no I never thought or do think theirs is no monthly benefits available nor do I think a return to the pension act is the answer.

every seriously disabled vet I know wants a return to the monthly pension and NOT THE PENSION ACT!!!! NONE of these people believe their is no monthly pensions available access to these benefits however are still in question.

yes the BUYOUT can be taken as an annual payment this we all know that but no matter how you take it it still adds up to APROX 9.25 years of the PA monthly payments.

yup the monthlies are there and also available to PA disabled vets .

GUY I ASK YOU THIS. WHAT IS WRONG WITH ALL VETS BEING TREATED  EQUALLY?????

I read all the recommendations and although good ones (in lieu of having a NVC monthly pension in line with the PA pension )and does address a lot of concerns equality being an exception.

an NVC monthly pension in line with the PA pension would address most of those concerns and some others along with the equality issue.

wow one change and one change only that could accomplish so much and treat all disabled vets equally at the same time and no one wants to touch ohhh except for the actual vets that are on it almost forgot about them as so many others have!!!!!!

if you want to keep on implying that people that want a return to the monthly PA style pension act UNDER THE NVC want a return to the pension act  or that we think that their is no other monthly pensions available ( to both NVC and PA vets )  you go ahead but im here to say.

THAT IS JUST NOT THE CASE!!!!!

yes a return to the monthly pension IS THE BE ALL AND END ALL!!!!

I WILL BE READING !!!!

stay tuned

always question authority

propat

Ottawa – August 15, 2014

“Under the New Veterans Charter a Veteran only receives a lump sum payment. There are no monthly payments for life.”

Q: True or False?

A. False

By far the most contentious feature of the New Veterans Charter is the Disability Award, or the lump sum payment. For too many, it is “the be all and end all” of the New Veterans Charter”. This is most unfortunate because it is entirely untrue.

Discussion about the lump sum payment not equating with the lifelong pension have become increasingly polarized around this one method of compensation. One reason for this is that other available New Veterans Charter financial support benefits are simply ignored in the discussion. Too often they are not acknowledged despite the fact that in addition to the Extended Earnings Loss Benefit, which is paid monthly to age 65, and two other benefits – the Permanent Impairment Allowance and the Permanent Impairment Allowance Supplement (the Supplement) – can continue to be paid for life and provide a measure of financial security for the most disabled Veterans.

Let’s look at the Permanent Impairment Allowance first. It is a financial support benefit with the objective of compensating an eligible Veteran for loss of earning capacity, specifically the effects of a service-related permanent and severe impairment on lost employment and career progression opportunities. This benefit is provided in three grade levels. The taxable monthly amounts currently range from $574.89 to $1,724.65. In addition, the Permanent Impairment Allowance Supplement provides additional taxable financial support ($1,056.96 per month) to Veterans who are in receipt of the Permanent Impairment Allowance, are assessed to be totally and permanently incapacitated and are no longer able to participate in any suitable and gainful employment.

What is the financial impact of these benefits on a permanently and severely impaired Veteran who was medically released at the Corporal rank with four years of service (monthly before tax salary of $4,622), and an assessed disability level of 80 percent? The Veteran is unable to work and is also assessed to be totally and permanently incapacitated. The example below shows the maximum that could be received if all of the benefits could be assessed by this Veteran.

This Veteran would receive a tax-free one-time lump sum disability award of approximately $241,000 to compensate for the pain and suffering resulting from his service-related injury (the award amount can be provided as an annual payment). Since the lump sum payment is strictly for pain and suffering, the Veteran would also receive the Extended Earnings Loss Benefit until the age of 65. This is a taxable monthly amount equal to 75 percent of gross pre-release salary, less other sources of income such as the Canadian Forces pension. In addition, the Veteran could receive the Permanent Impairment Allowance and the Supplement on a monthly basis for life, as long as eligibility requirements are met.

Until the age of 65 (and assuming the Veteran is awarded the Permanent Impairment Allowance at the lowest grade level), approximately $5,100 per month in taxable monthly economic financial support could be provided. If the Veteran was eligible for the Permanent Impairment Allowance at the highest grade level, the amount would be approximately $6,250 per month.

In essence, this Veteran, who was medically released at the Corporal-basic pay grade, could receive (until age 65) financial support that approximates the pay rate of a Master-Corporal at pay grade 3. If the Veteran was eligible for the Permanent Impairment Allowance at the highest grade level 1, financial support that approximates the pay rate of a Warrant-Officer at pay grade 3 could be received. Although this is a maximum value, it does show what the New Veterans Charter is capable of providing.

One problem that I and others have identified is that when the Veteran reaches the age of 65, the Extended Earnings Loss Benefit ceases and the financial monthly support from Veterans Affairs Canada is reduced to the Permanent Impairment Allowance and Supplement. A one-time taxable lump-sum Supplementary Retirement Benefit would also be paid, which has an average payout of under $5,000. This reduction in financial support after the age of 65 needs to be a priority issue for this government and I am pleased that the House of Commons Standing Committee on Veterans Affairs took it up in its hearings and deliberations and made a recommendation to government to address this issue.

In summary, those who believe that the New Veterans Charter should be tossed out and the Pension Act restored as the sole legislative vehicle for Veterans’ programs and benefits forget that had it not been for Veterans’ frustration with the Pension Act, there probably would not be a New Veterans Charter today. Also, the Charter was not brought into being just to replace the lifelong pension of the Pension Act. Its focus is on wellness and facilitating the transition for Veterans and their families from military to civilian life – not just on compensation for pain and suffering, as was the case with the Pension Act.

While acknowledging that there are issues to be resolved with financial support after a Veteran reaches the age of 65 and that the Earnings Loss Benefit needs to be raised at least 10 percent so that there is no drop in net income for Veterans during their transition from military to civilian life, it cannot be said that a Veterans only gets a lump sum payment under the New Veterans Charter. Simply put, as it stands today under the New Veterans Charter, a seriously disabled Veteran can receive monthly payments until age 65 that equate to a salary one or two ranks higher than their current rank – this is reduced at age 65 when the Earnings Loss Benefit ceases. If my recommendations are adopted, financial security after age 65 will be secured.

Now having said how these allowances can positively affect the financial security of Veterans, there is a problem with accessing the programs. My next blog on Monday will address this. Then next Tuesday, I will be releasing a report that details these and other issues with the Permanent Impairment Allowance and the Supplement. The report will recommend changes to improve access to these benefits for Veterans who suffer from a service-related permanent and severe impairment that impacts their employment and career progression opportunities.

Stay tuned.

Guy

http://www.ombudsman-veterans.gc.ca/eng/blog/post/249