Re: CPP Disability and the Income Replacement Benefit

by Unknown Soldier Tue 17 Dec 2019, 15:24

MaximusKwanHagen wrote:Unknown Soldier - All I know is that we will never get ahead. In fact, I will drop by 20%. I may be able to delay my OAS a few years and get an overall few bucks more but it will not be much. These mathematicians at VAC and at CRA have got us locked down! LOL
I am thankful. I just keep saying this over and over. A line from the Titanic. It seems to help.

Jack Dawson
Well, yes, ma'am, I do...I mean, I got everything I need right here with me. I got air in my lungs, a few blank sheets of paper.

I mean, I love waking up in the morning not knowing what's gonna happen or, who I'm gonna meet, where I'm gonna wind up.

Just the other night I was sleeping under a bridge and now here I am on the grandest ship in the world having champagne with you fine people.

I figure life's a gift and I don't intend on wasting it.

You don't know what hand you're gonna get dealt next. You learn to take life as it comes at you...to make each day count.

Happy Holidays to all.

I’m alive for now and yes I’m grateful...but we all know what happened to the titanic

by Guest Tue 17 Dec 2019, 02:38

Unknown Soldier - All I know is that we will never get ahead. In fact, I will drop by 20%. I may be able to delay my OAS a few years and get an overall few bucks more but it will not be much. These mathematicians at VAC and at CRA have got us locked down! LOL
I am thankful. I just keep saying this over and over. A line from the Titanic. It seems to help. Very Happy

Jack Dawson
Well, yes, ma'am, I do...I mean, I got everything I need right here with me. I got air in my lungs, a few blank sheets of paper.

I mean, I love waking up in the morning not knowing what's gonna happen or, who I'm gonna meet, where I'm gonna wind up.

Just the other night I was sleeping under a bridge and now here I am on the grandest ship in the world having champagne with you fine people.

I figure life's a gift and I don't intend on wasting it.

You don't know what hand you're gonna get dealt next. You learn to take life as it comes at you...to make each day count.

Happy Holidays to all.

by Unknown Soldier Mon 16 Dec 2019, 21:34

bigrex wrote:See, the problem is, there has not been that many IRB recipients, if any, that are over the age of 65. So we know how the policy is supposed to work, on paper, but have not seen how it will work out in practice. but technically, the legislation only states that IRB is reduced at age 65, and then deducts monthly income benefits from the prescribed sources.

"Amount of benefit — veteran 65 years or older

19.1 (1) Subject to the regulations and section 19, the monthly amount of the income replacement benefit that is payable under section 18 to a veteran who has attained the age of 65 years shall be determined by the formula

A – B

where

A is 70% of the income replacement benefit that the veteran would have been entitled to for the month in which they attain the age of 65 years had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) not been taken into account; and

B is an amount that is payable to the veteran for a month from prescribed sources. "

So therefore, if you are not getting any income from those prescribed sourced, becasue they were deferred until age 70, they should not be legally allowed to deduct those amounts. Now whether or not they will do it illegally, is another story, knowing that most Veterans would rather just apply for the benefits, and get reimbursed the difference, than go to court. But honestly, there is no real reason to delay getting those benefits, because regardless if they deduct $1000 at age 65, or start deducting $1500 at age 70, at age 65, the IRB is still going to be capped at 63%, instead of 90%, of your imputed income, before deductions.

this is probably a stupid question but what is the reasoning for even dropping IRB to 70% in the first place, is it simply because a veteran will now get OAS and CPP as well.? , it just stands to reason that the older a disabled vet gets in life the more he’s going to need his previous income, because he will be able to do less and less physically because their QOL will have age added on top of their injuries.Why not just leave all us poor bastards alone living the standard of life we’ve become accustomed to by that point..?

by **bigrex** Mon 16 Dec 2019, 19:10

See, the problem is, there has not been that many IRB recipients, if any, that are over the age of 65. So we know how the policy is supposed to work, on paper, but have not seen how it will work out in practice. but technically, the legislation only states that IRB is reduced at age 65, and then deducts monthly income benefits from the prescribed sources.

"Amount of benefit — veteran 65 years or older

19.1 (1) Subject to the regulations and section 19, the monthly amount of the income replacement benefit that is payable under section 18 to a veteran who has attained the age of 65 years shall be determined by the formula

A – B

where

A is 70% of the income replacement benefit that the veteran would have been entitled to for the month in which they attain the age of 65 years had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) not been taken into account; and

B is an amount that is payable to the veteran for a month from prescribed sources. "

So therefore, if you are not getting any income from those prescribed sourced, becasue they were deferred until age 70, they should not be legally allowed to deduct those amounts. Now whether or not they will do it illegally, is another story, knowing that most Veterans would rather just apply for the benefits, and get reimbursed the difference, than go to court. But honestly, there is no real reason to delay getting those benefits, because regardless if they deduct $1000 at age 65, or start deducting $1500 at age 70, at age 65, the IRB is still going to be capped at 63%, instead of 90%, of your imputed income, before deductions.

by Guest Mon 16 Dec 2019, 18:05

by BinRat Mon 16 Dec 2019, 17:28

ya I clicked on link or topic title and took me back to the same post..

I highlighted the topic line then pasted into another browser window and was able to get to the PDF..
But to save people that problem.. I'll just post the link inside this post.

https://www.veterans.gc.ca/pdf/about-vac/legislation-policies/policies/doc2830-income-replacement-benefit-transition-policy-01042019-01-eng.pdf

by Unknown Soldier Mon 16 Dec 2019, 17:22

MaximusKwanHagen wrote:Section 18e and section 27d.

This will answer every question with regards IRB CIAS post 65 at 70%
You will never drop below the $1145 plus it will have cola applied to it each year.

It doesn’t open for me ?

by Guest Mon 16 Dec 2019, 17:14

This will answer every question with regards IRB CIAS post 65 at 70%
You will never drop below the $1145 plus it will have cola applied to it each year.

by propat Thu 12 Dec 2019, 09:52

just a few points CIAS was for life thus protected and they cannot deduct for amounts you do not receive . i dont think they should even deduct for amounts they assume you will be receiving without confirmation but thats just me.

look i dont know if general blogging or even a financially well positioned cpl would be already zeroed or not .

not sure exactly the effects of a 3 year pte without a military pension have on his OAS and that effect on IRB.

what i do know it is a math problem for the individual . to delay payments or not cant be answered in any a general sense but only specific to an individual .

propat

by Guest Thu 05 Dec 2019, 06:33

Had a follow-up call from the Benefit Calculation unit at VAC the supervisor said If you had CIAS prior to Apr 1, 2019, your IRB will never go below $1145.00
Even if your offsets indicates it should. That min amount is protected. I requested a ref to make sure this information is correct. I was told yesterday something else.
I will share that ref when I receive it.

by AirLog Wed 04 Dec 2019, 21:37

All,

I have sent VAC a message asking this exact question. I suspect that KetchupKD is right in his/her assumption that at 65 they will automatically deduct CPP/OAS as an offset and leave it to the veteran to show the exact amount. I will post what VAC replies.

AirLog

by Unknown Soldier Wed 04 Dec 2019, 19:40

AirLog wrote:KetchupKD,

That is a good question. Perhaps better answered by directly asking VAC Financial thru you VAC account. It would definitely be to our benefit if we could defer our CPP and OAS to age 70 without VAC automatically offsetting our benefits at age 65. If we defer would VAC, nevertheless, still offset our benefits as if we are receiving them? Great question, but, I don't have the answer. For me, I would love to defer my OAS (not CPP because I am already collecting CPPD) and increase it's value without having my OAS being used as an offset. I haven't read anything in the regulations that would directly answer this question. I have thought of it. Especially, when I was applying for CPPD. Perhaps I will send VAC this exact question.

AirLog

I am in that exact boat too, I think each of us should pose the question to see if VAC slides a different answers

by Guest Wed 04 Dec 2019, 18:56

Air Log: They cant offset OAS if you do not receive it can they?
Mind you, I have heard at 65 they automatically deducted CPP and OAS at the max level. Then you must submit information indicating the exact amount and within 90 days all is corrected and reimbursed.

by johnny211 Wed 04 Dec 2019, 18:43

Airlog - being near the big 60 myself, I’m also interested to hear there answer. I have cppd also, but did not know one could put the OAS off a few yrs.
My rd too TPI determination was a different one due to my wacky CM at the time. This was back several yrs when they had 50 plus Vets ea to look after. After my Voc Rehab and job feel apart, I told my CM I was applying for CPPD. She said, let me know if you get it, then I’ll use Yr approval letter for Yr TPI at the time..lol. That’s how it went. Not sure if anyone else went that rte. It was a overworked, lazy CM, who could not be bothered to do her job..VVV

by AirLog Wed 04 Dec 2019, 18:11

KetchupKD,

That is a good question. Perhaps better answered by directly asking VAC Financial thru you VAC account. It would definitely be to our benefit if we could defer our CPP and OAS to age 70 without VAC automatically offsetting our benefits at age 65. If we defer would VAC, nevertheless, still offset our benefits as if we are receiving them? Great question, but, I don't have the answer. For me, I would love to defer my OAS (not CPP because I am already collecting CPPD) and increase it's value without having my OAS being used as an offset. I haven't read anything in the regulations that would directly answer this question. I have thought of it. Especially, when I was applying for CPPD. Perhaps I will send VAC this exact question.

AirLog

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