Re: question about transitioning from SISIP LTD to IRB

by Lordporky Wed 12 Jul 2023, 13:05

Sorry, I don't know the answer to your question.

probably best to link up with someone from VAC to get that one clarified.

Good luck!

by Halfpint Wed 12 Jul 2023, 13:00

Hello Lordporky

Thank you for your response.

“Clear as mud” as they say. Just kidding!

So can you riddle me this?:

When I turn 65 and I lose my LTD and I’m not sure what percentage of my CFS, does that get “made up” in other areas through VAC? Like DEC or IRB or another form of whatever?

Thanks in advance for your help.

Lordporky wrote:Morning Halfpint,

I’m not aware of any benefits you cannot receive from VAC while on LTD. That said, VAC benefits are complex and ever changing. There might be some that become unavailable while on LTD. The best person to answer that question would be a VAC case manager. If you don’t have one, you can call and ask to speak with a duty case manager.

“For instance, one member mentioned waiting for a DEC (?) decision and then going off LTD and applying for IRB. So does that mean if a member receives IRB, they cannot be in receipt of LTD? And does it work the same with CPP? Are there some benefits that conflict with that as well?“

I’ll try to answer this in two parts.

1. You put a question mark after DEC, I’m assuming that means you’re unfamiliar with what a DEC (Diminished Earning Capacity) is? If that’s the case, here is a link to VAC’s policy on it. It should answer all your questions: https://www.veterans.gc.ca/eng/about-vac/legislation-policies/policies/document/1971#anchor110170

2. A person can, and probably will be, in receipt of both IRB and LTD at the same time. Upon a favourable DEC decision, they will probably be on LTD, IRB, and CPPD (Canadian Pension Plan Disability).

Here’s roughly how it works:
IRB is through VAC, LTD is through SISIP, and CPPD is through the federal government. If VAC determines a veteran has a DEC, the vet will continue receiving 90% of their pre-release salary for life, but the where the money comes from changes. Upon a favourable DEC decision, SISIP will require the veteran to apply for CPPD. If that application is successful, SISIP LTD will be reduced and VAC IRB will be reduced but the member will continue to receive the same income (90% of pre-release salary) through the combined total of those 3 sources (SISIP LTD, VAC IRB, and, CPPD).

Additionally, the veteran can still receive a monthly amount through VAC benefits like Pain and Suffering Compensation/Additional Pain and Suffering Compensation (if found eligible though a disability benefit application) on top of the 90%. VIP benefits are also available above the 90% if the vet is eligible. There are probably other benefits but I’m not aware of them - again, it’s best to speak to a VAC case manager for specifics.

I hope that answers your questions. It’s a complicated topic. I’ll do my best to clarify or answer any follow-up questions.

Take care,
LP

by Lordporky Wed 12 Jul 2023, 10:49

Morning Halfpint,

I’m not aware of any benefits you cannot receive from VAC while on LTD. That said, VAC benefits are complex and ever changing. There might be some that become unavailable while on LTD. The best person to answer that question would be a VAC case manager. If you don’t have one, you can call and ask to speak with a duty case manager.

“For instance, one member mentioned waiting for a DEC (?) decision and then going off LTD and applying for IRB. So does that mean if a member receives IRB, they cannot be in receipt of LTD? And does it work the same with CPP? Are there some benefits that conflict with that as well?“

I’ll try to answer this in two parts.

1. You put a question mark after DEC, I’m assuming that means you’re unfamiliar with what a DEC (Diminished Earning Capacity) is? If that’s the case, here is a link to VAC’s policy on it. It should answer all your questions: https://www.veterans.gc.ca/eng/about-vac/legislation-policies/policies/document/1971#anchor110170

2. A person can, and probably will be, in receipt of both IRB and LTD at the same time. Upon a favourable DEC decision, they will probably be on LTD, IRB, and CPPD (Canadian Pension Plan Disability).

Here’s roughly how it works:
IRB is through VAC, LTD is through SISIP, and CPPD is through the federal government. If VAC determines a veteran has a DEC, the vet will continue receiving 90% of their pre-release salary for life, but the where the money comes from changes. Upon a favourable DEC decision, SISIP will require the veteran to apply for CPPD. If that application is successful, SISIP LTD will be reduced and VAC IRB will be reduced but the member will continue to receive the same income (90% of pre-release salary) through the combined total of those 3 sources (SISIP LTD, VAC IRB, and, CPPD).

Additionally, the veteran can still receive a monthly amount through VAC benefits like Pain and Suffering Compensation/Additional Pain and Suffering Compensation (if found eligible though a disability benefit application) on top of the 90%. VIP benefits are also available above the 90% if the vet is eligible. There are probably other benefits but I’m not aware of them - again, it’s best to speak to a VAC case manager for specifics.

I hope that answers your questions. It’s a complicated topic. I’ll do my best to clarify or answer any follow-up questions.

Take care,
LP

by Halfpint Wed 12 Jul 2023, 09:37

Good morning
I’m a little late to this party, but I have a question(s). Are there certain benefits you can’t receive from VAC if you are on LTD? For instance, one member mentioned waiting for a DEC (?) decision and then going off LTD and applying for IRB. So does that mean if a member receives IRB, they cannot be in receipt of LTD?

And does it work the same with CPP? Are there some benefits that conflict with that as well?

Thank you!

by umbrella001 Thu 26 Nov 2020, 13:42

In the long run applying for CPPD is a good idea. In my experience, my spouse authorized the CPPD payment to be paid directly to sisip. Yes you lose the bridge benefit off your pension but my accountant wrote off the tax debt because although CPPD comes out untaxed when it is paid back to SISIP that sisip money you received over the last 2 years was already taxed. We were audited because of the large amount of write off and I provided the paperwork indicating the payment was forwarded to sisip directly from CPPD and had no issues.

by AirLog Wed 30 Sep 2020, 14:59

Lordporky,

When you are approved CPPD you get hit in every direction financially. Every situation is different so look at you case in detail and ask lots of questions to have a complete understanding whatever your final decision is. In my case I had a back pay of approximately $12,000 to my military pension and another $12,000 to my private insurance. When my pension was reduced my IRB went up accordingly but, my private insurance went down with the total amount of monthly CPPD. If I didn't apply for CPPD my insurance company would have automatically reduced my monthly payment by $1,000 and started to pressure me to apply for CPPD. As for tax implications, I had to pay tax for the total amount of CPPD back payments. The amount that I had to offset my military pension with automatically offset my taxes but, because my private insurance monthly payment is tax free there was not tax offset here. So bottom line for me was a very expensive CPPD approval. I wouldn't have applied for CPPD if it wasn't for my insurance company's instance.

Why is SISIP pushing for CPPD if you are transferring to IRB? Delay, if you can, and wait until you are off of SISIP and then don't apply for CPPD.

AirLog

by Lordporky Wed 30 Sep 2020, 12:27

AirLog,

thanks for your reply.

I'm not collecting CPP yet so I hadn't considered CPP implications - good point - thanks!

I don't want to apply for CPP-D at the moment but SISIP is pushing for it because they get to reduce the amount they pay by whatever CPP-D is worth. My main concern is that many payroll changes in a short period of time will lead to inevitable mistakes and delays.

what was the cost of CPP-D for you? was it a reduction in your overall income or did was it a tax issue?

by AirLog Wed 30 Sep 2020, 11:59

Hi Lordporky,

I am 61 years old, DEC, IRB and CPPD. There is a huge tax implication and repayment cost to being placed on CPPD. You will have to back pay your bridge benefit to your military pension, SISIP, and a tax bill that goes with it. The only benefit is that the time you are on CPPD doesn't count as time to calculate your CPP. I only went on CPPD because my private insurance (GWL) requested it. I was approved CPPD but it did come with a financial cost. Carefully review your personal financial situation before you make a decision to apply for CPPD. I am not sure how SISIP works but if you are being taken off of SISIP then there might not be any reason to apply for CPPD. VAC never asked me to apply for CPPD even when I was approved DEC.

AirLog

by Lordporky Wed 30 Sep 2020, 11:46

HI folks,

I am currently receiving SISIP LTD and have been for just over two years. I am currently awaiting a DEC decision from VAC. There's no guarantee but I have good reason to believe the DEC decision will be favourable. If it is favourable I will move from SISIP LTD to VAC IRB.

SISIP just sent me a letter telling me I need to apply for CPP-disability.

I'd rather not apply for it because: 1- it can be payed retroactively, leading to a monster tax bill. 2- its a massive pain in the ass to apply for. 3 - any CPP-D payment (including back pay) goes directly to SISIP and does not benefit me. - Am I reading this situation correctly? What am I missing?

For those of you (under 65) that have a DEC and are on IRB - did VAC require you to apply for CPP-D?

I'd appreciate any insight or experiences you have on the subject.

cheers.

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