CIAS AND THE IRB

bigrex wrote:It's because they lump both payments together, when calculating the taxes owed. So since your taxable income, has more than doubled, it only makes sense that the taxes being deducted, would also more than double.

I understand what you are stating.. That would be about a 25% tax rate..However on MyVac current benefits I only see a deduction of the $140..I am sure the extra $314.68 is somewhere...Will keep you all updated once I know...

Ok I was under the impression that due to CIAS being eliminated after April 1 2019. And lost career progression being implemented at 1% per year till retirement or 20 served. That a person awarded CIAS for career being impacted . That this was one or the other . Lost career progression or CIAS and not both. As my deductions on IRB only increased by 320$ But IRB overall only increased by 500$. With 325 missing . I will contact VAC again tomorrow.

Edit :
I was stating to deduct the 1% per year lost career progression as he was awarded CIAS after 2019 as LCP would have been implemented on April 1 prior to being awarded CIAS. For calculating purposes.

PaperClip, they don't deduct 1% per year. They add 1% per year, until you reach what would have been your 20th year. This is separate from the COLA. So if you are medically released after 15 years, and go on IRB, it will be increased by 1% for 5 years. if you already recived those increases, when you get approved for CIAS, you don't lose anything awarded prior to the effective date of the CIAS.

Changes to IRB on APRIL 1 2019 .. remember to deduct that 1% per year lost career progression benefit which increased military salary and increased the IRB ,than add in the CIAS amount. I was recently awarded CIAS also .. The extra 1% per year was equal to about 300$ also in my case. Unfortunately we do not get both


Awarded 500 extra for CIA2 tax free .. awarded CIAS 1145 so 1645 approximately. My total monthly income went up 1000$.. I presumed increased taxes and researched to find lost career progression..

Hope this helps

It's because they lump both payments together, when calculating the taxes owed. So since your taxable income, has more than doubled, it only makes sense that the taxes being deducted, would also more than double.

As I suspected the CIAS in my case was added to the IRB.

Your ELB was previously transitioned to the Income Replacement Benefit (IRB)
effective April 1, 2019. As you have now received a favourable decision on your CIAS
application the combined monthly entitlement amounts for your ELB and CIAS as of
March 31, 2019, before taxes, is protected. From now on, this amount will be referred to
as your protected amount

Your minimum IRB amount payable each month, after offsets, will not be less than
$1,145.37, which is the monthly CIAS entitlement amount as of
March 31, 2019. If in the future you are no longer eligible for the IRB, you will continue
to receive this minimum amount, indexed annually

Prior to CIAS approval my IRB amount was 890.00 now with the CIAS after tax my new combined total is $1580.69 after offsets..The tax was only $140.00..
Hopefully someone smarter then me can explain...
IRB Mar 31th + CIAS - tax Therefore 890+1145.37-140=$1895.37 As a result $1895.37 - $1580.69 So where is the other $314.68

Sorry for the confusion