Retirement Income Security Benefit

I am wondering if that date is to frack the younger guys who get sisip Ltd but because they increased the elb and gave it to the sisip Ltd guys this is going to cause a lot of problems down the road. This is why sisip Ltd should be phased out for service related injuries and the elb take over. Plus it should be for life and get rid of the risb. I wonder if the veterans ombudsman has been made aware of this problem?

Yeah, I don't know why they have that cutoff date of 2025...

So if you are on sisip Ltd, you have to turn 65 before July 2025 to qualify ???? What if you turn 65 a day after this date and what if your on sisip Ltd plus you get the 15 percent top up for elb from vac? Doesn't make sense and what's the rationale for this rule?

Thanks guys!

Here's an Example;

Marc, a 21-year-old private, is severely injured after just one year of service. Before releasing from the military, Marc works with a Veterans Affairs Canada case manager to assess his needs and ensure a smooth transition from military to civilian life. Among the supports in place for him are VAC financial benefits totaling approximately $62,000 annually (which is comprised of income from the Earnings Loss Benefit, Permanent Impairment Allowance and Permanent Impairment Allowance Supplement).

Under the current system, when Marc reaches the age of 65, his Earnings Loss Benefit stops, causing his annual income to fall to roughly $27,000. With the proposed Retirement Income Security Benefit, Marc would receive an increase that would lift his total annual income to 70% of what he was receiving from VAC before age 65, ensuring a better opportunity to maintain quality of life in his retirement years.

My comments:

In the above you first need to calculate 70% of $62,000 which would be $43,400

$43,400 is your 70%

Marc's annual income is now $27,000

The RISB benefit for Marc would be $43,400 minus $27,000 which gives you a RISB benefit of $16,400 annually or $1,366 Monthly.

If Marc's annual income is $43,400 or above, he would not qualify for the RISB.

This is where the deductions come into play.

Retirement Income Security Benefit

Amount of benefit
(4) Subject to the regulations, the monthly amount of the retirement income security benefit that is payable to a veteran shall be determined in accordance with the formula
(A + B) – C
where
A
is 70% of the earnings loss benefit to which the veteran would be entitled for the month in which they attain the age of 65 years, calculated as if the benefit were payable for that entire month and not taking into account amounts that are payable to the veteran from prescribed sources referred to in subsection 19(1);
B
is 70% of the permanent impairment allowance, including any increase to it under subsection 38(3), payable to the veteran for the month in which they attain the age of 65 years; and
C
is the total amount that is payable to the veteran for a month from prescribed sources.


prescribed sources

SOR/2015-197, s. 3.
46.3 (1) The following sources are prescribed for the purposes of the description of variable C in subsections 40.1(4) and 40.2(4) of the Act:
(a) benefits payable under the Canadian Forces Superannuation Act, the Public Service Superannuation Act or the Employment Insurance Act;

(b) benefits payable under Part I of the Royal Canadian Mounted Police Superannuation Act;

(c) benefits payable under the Canada Pension Plan or the Act Respecting the Québec Pension Plan;

(d) benefits payable under the Old Age Security Act;

(e) earnings loss benefits and permanent impairment allowance payable under the Act including any increase to the allowance under subsection 38(3) of the Act;

(f) long-term disability benefits payable under the Service Income Security Insurance Plan Long Term Disability (LTD);

(g) benefits payable under any employer-sponsored long-term disability insurance plan;

(h) benefits payable in respect of economic loss under the Government Employees Compensation Act or any provincial workers’ compensation legislation;

(i) amounts payable under an employer pension plan; and

(j) employment earnings.



Retirement Income Security Benefit Information


Canadian Forces Members and Veterans Re-establishment and Compensation Act
http://laws-lois.justice.gc.ca/eng/acts/C-16.8/page-5.html#h-12

Regulations
http://laws-lois.justice.gc.ca/eng/regulations/SOR-2006-50/page-6.html#docCont

Policy
http://www.veterans.gc.ca/eng/about-us/policy/document/2218#anchor56257



Note: For SISIP LTD Veterans turning 65 after 2025 and the RISB policy

The RISB is also available to Service Income Security Insurance Plan – Long Term Disability (SISIP-LTD) Veterans, who are totally disabled and have entitlement for a Disability Award or a Disability Pension. These Veterans must have turned age 65 on or after April 1, 2006 and before July 1, 2025.



Cheers

That's the way it was explained to me at the announcement back in 2014 by the VAC legal team Vet1234.

And after the veteran passes away the spouse gets 50% of the 70% RISB. It's the only Widow/Widower pension in the NVC.

So end of day, RISB ensures 70% of ELB +PIAS?

Actually it's only 70% of your ELB or LTD, whichever one is on, plus the PIA and PIAS.

Don't know where the subtracting of PIA, PIAS, CF pension, CPP/OAS came from in the above calculations?

I thought the policy took 70 of pia+elb and that was the total we would receive.

That's why in my opinion, the legions idea of just extending the ELB or Sisip ltd for life would be a great idea for us. Even if you have no use for the legion this idea has merit

thats brutal

Vet1234 wrote:

bigrex wrote:How they calculate RISB

ELB = $4000 (the full 90% before deductions)
PIA = $599
PIAS = $1103
= $5702 total VAC benefits

$5702-30% = $3991 RISB ceiling

from that $3991, you automatically deduct the PIA/PIAS, leaving a balance of $2289. From that amount, you also deduct any other benefit you may receive, like CF pension, CPP and OAS. If you are lucky, it will still get a few hundred dollars in the end.

$2289 for RISB plus the full PIA?  

No $2,289 minus your annual income.

IE:

Example 1

Your annual income equals $2,200 per Month

$2,289 - $2,200 = $89.00 Your Monthly RISB would be $89.00 a Month.

Example 2

Your annual income equals $2,300 per Month

This puts you over the qualifying amount. You would not qualify for the RISB.

bigrex wrote:How they calculate RISB

ELB = $4000 (the full 90% before deductions)
PIA = $599
PIAS = $1103
= $5702 total VAC benefits

$5702-30% = $3991 RISB ceiling

from that $3991, you automatically deduct the PIA/PIAS, leaving a balance of $2289. From that amount, you also deduct any other benefit you may receive, like CF pension, CPP and OAS. If you are lucky, it will still get a few hundred dollars in the end.

$2289 for RISB plus the full PIA?

How they calculate RISB

ELB = $4000 (the full 90% before deductions)
PIA = $599
PIAS = $1103
= $5702 total VAC benefits

$5702-30% = $3991 RISB ceiling

from that $3991, you automatically deduct the PIA/PIAS, leaving a balance of $2289. From that amount, you also deduct any other benefit you may receive, like CF pension, CPP and OAS. If you are lucky, it will still get a few hundred dollars in the end.