Increased Disability Award & Retro

Jan 5, 2017 ... Veterans Affairs Canada is committed, through Budget 2016, to increasing the maximum value of the Disability Award lump-sum amount.

The Disability Award provides injured Canadian Armed Forces members or Veterans with tax-free financial support for an injury or illness resulting from military service. The Disability Award is paid in recognition of the non-economic effects, including pain and suffering, of service-related disabilities on the lives of Canadian Armed Forces members and Veterans.

Veterans Affairs Canada is committed, through Budget 2016, to increasing the maximum value of the Disability Award lump-sum amount.

Budget 2016 reaffirmed the Government’s intent to support the long-term financial security of ill and injured Veterans.

The maximum Disability Award will be increased from $310,378 to $360,000 on April 1, 2017. In addition, Death and Detention Benefit amounts will also be increased accordingly.

The increase to the Disability Award and the Death Benefit will also mean that Canadian Armed Forces members, Veterans and survivors who have already received a Disability Award and/or a Death Benefit under the New Veterans Charter will benefit from the new rate and receive a supplementary payment.


The monetary value of a Veteran’s disability benefits is based on an assessment of his or her disability. The two factors that determine the assessment are the level of medical impairment resulting from an illness/injury and the resulting impact on the individual’s quality of life. While the degree of a Veteran’s disability is measured in one percent increments, disability benefits are paid in in 5% increments accordance with legislation.

The maximum Disability Award lump-sum amount will be comparable to or greater than similar non-economic compensation amounts payable in Canada under private and public sectors insurance plans, by the Workers’ Compensation Board or as non-pecuniary damages awarded by Canadian courts.

Changes to the Disability Award will come into effect April 1, 2017.

http://www.veterans.gc.ca/eng/about-us/department-officials/minister/budget/disability-award

I would not put it past the GOC that the retro LSP is not paid out until the election year to gather support for the 2019 election. All the Legislation states, is that it has to be paid after 1 April 2017.

trooper if I'm correct you are right a vet can do their calculations that way not a problem . they would come out with a good rough amount for their retro .

again if I'm correct the GOC cant do it that way because whatever they figure the award will be they will still have to add COLA from the date it was due to the date it was paid . however if they had worded the new legislation better i believe the could have . lack of foresight i guess .

propat

6608 ya no problem buds yup seems that way to me but still just a theory in that is just my reading if the legislation . i did spend a lot of time reading a the time the issue came up but i very well could have missed something .

right now till i see something else the added wording in question is just COLA recovery nothing more .

propat

The difference may seem minor to some, but the farther you go back, especially during the years with larger CPI increases, using division to determine COLA creates a difference of over $1000 less, for a 100% award. It would be roughly $288600, versus my estimated pro-rated amount of $290000, that equals the $360000, once all COLA increases between 2007 and 2016 are added.

Obviously, VAC could use either method, but I'm hoping that they will use the one that is far simpler to calculate, and also puts more money in our pocket.

My math did not add or subtract but used multiplication

X + (x * z ) = x * ( 1 + z ) where x =  value and z = a percent.
Using multiplication, you can back into it as well as
X * y = z
Therefore z/ y = x

So 310,000 + ( 310,000 *0.013) = 310,000 * 1.013

310,000 + 1.3% = 314,030. Agreed
310,000 * 1.013 = 314,030
314,030 / 1.013 = 310,000

The problem with your calculations are that you are subtracting the COLA from the higher amount, so the amount deducted is larger. The way COLA is calculated is that it is added to an amount, not subtracted.

Example 310000 + 1.3% = 314030.
Yet 314030 - 1.3% = 309947.61

Also, they said that COLA was only going to be calculated to 2016, so the recent increase will not be included in their calculations.

Trooper wrote:Check the Veterans Affairs Website? The same Website that removed the retro example without explanation?

Just my opinion on the cola that's been talked about regarding the retro calculations.
The increase to $360,000 has all of the cola enclosed into it, therefore, if they were to top up a Veteran as per percentage dollar for dollar, you would not have to worry about the cola in doing your calculations.

Example: A Veteran receives one award at 100% in 2008 in the amount of $278,000, the Veteran receives a top up of $82,000, this would be inline with the term top up, and the cola would be all included into that retro simply because it was calculated from the 2017 increase.  

this was the purpose of my previous post with very rough calculations , proving that a retro payment adjusted by cola equals the 360K - the 2017 rate regardless of year

***previous calcs adjusted with accurate math ***

the current award rate (2017) 314,723.89
post april is will be 360,000
the award increase post april = 360,000 - 314,723.89 = 45276.11

now, For example. In 2015 a 10% was 30,669.82
if the same award was warded in 2017, a 10% award is 31,472.39

If you figure the adjustment for 2017 for an award in 2017 prior to april 1st, it would be 36,000 - 31,472.39 or 4527.61

if you back up the cola on the 360,000 to 2015
2016 = 360,000 / 1.014 = 355,029.59
2015 = 355,029.59 / 1.012  = 350,819.75

so, the total 10% award post 360 in 2015 should be 35,081.98
the actual adjustment for 10% in 2015 should be 35,081.98. - 30,669.82 or 4412.16

not take that 2015 value and adjust the cola up
4412.16 * 1.012 * 1.014 = 4527.62

the same as what the 2017 award increase would be

now to go a little but further, in their previous example, a 25% award was 11,000  ** that would be a rough example
do the actual math, and the exact value will be 45,276.11 * .25 = 11,319,03  

so, basically, regardless of year, adjusting cola down then the adjustment up
a 10% award should give you 4,527.62
a 25% award should give you 11,319,03  
and a 100% award should give you 45,276.11

Vet1234 wrote  " Seems as if we need a degree in english law to interpret GoC. "
Steelgunner wrote  " I look at it this way with no law degree, just common sense. "
and Johnny211 writes  " One needs to be a lawyer to read these acts "

I think the "readability" of Acts are worse than Policy Documents, they can both be... pretty brutal on the old noggin. Esp. if your QoL, and your family's income is dependant upon them.

Scotch whiskey's a great translator   , worked great for me. But it sure had.... repercussions.

Check the Veterans Affairs Website? The same Website that removed the retro example without explanation?

Just my opinion on the cola that's been talked about regarding the retro calculations.
The increase to $360,000 has all of the cola enclosed into it, therefore, if they were to top up a Veteran as per percentage dollar for dollar, you would not have to worry about the cola in doing your calculations.

Example: A Veteran receives one award at 100% in 2008 in the amount of $278,000, the Veteran receives a top up of $82,000, this would be inline with the term top up, and the cola would be all included into that retro simply because it was calculated from the 2017 increase.

One needs to be a lawyer to read these acts, got this answer on My Vac Account. So who knows it could be anytime in 2017, or not:

Thank you for using My VAC Account and our secure email services. 

Upon review of the Act, it does state under 21 (1); The Minister
must pay a member or a Veteran who received , in whole or in
part, a disability award under section 45, 47, or 48 of the Act
before April 1, 2017, an amount determined in accordance with
the formula. Therefore, the Act is referring to disability payments
paid to clients prior to April 1, 2017 and does not mean that
the adjustment payment must be paid to clients prior to April
1, 2017. 

At this time, we have no further information on the exact dates
of when the retro payments will be released, we will have move
information about this increase closer to the implementation
date. We recommend that you keep watching the Veterans Affairs
website for further information as it gets closer, as more information
will be posted there. 

If you have any further questions or concerns, please contact
us again via My VAC Account or our toll free number 1-866-522-2122.

As far as I'm concerned, if the lump sum was say max $280,000 when you got awards and it has now been increased to $360,000 it would seem logical that one should subtract $360,000-$280.000 for $80,000 difference and payout plus cola and other things. Especially if a vet is 100% it would seem smart to provide the difference. But the GOC is neither smart or sensible. If vets aren't issued the LSA payout in the year 2017, I would raise hell!

I look at it this way with no law degree, just common sense.

It was in the budget of 2016, the funds are there to pay us out, could they screw us and put it off past 2017? Yes they can and it would not be out of order of a snake that this GOC is.

I say let them screw us up again, maybe this will be the event that breaks the camels back and we as. Veterans actually do something to Ottawa.

I can definitely see that.
Seems as if we need a degree in english law to interpret GoC.

Vet1234, Propat already corrected my misunderstanding. Thanks for that explanation Propat and i think you are right i was too fixated on the changes to the act and understand what your saying about the regulations to the act (which allow for the cola increases) that they haven’t changed (yet) and still apply to the new rates in the act.


As for having to payout before the 1st of April 2017 that's incorrect, you cannot get paid before the changes to the act comes into force which is April 1st. All they are saying in the amended legislation is anyone who received a disability award/death benefit before April 1st 2017 is entitled to the increase.





Cheers