DEC “ off set “ by pension question
+3
Kramer
AirLog
Unknown Soldier
7 posters
Page 2 of 2 • 1, 2
Re: DEC “ off set “ by pension question
yes, l read about that, like a veteran could have some kind of home business and earn up to $20000 before they would have to claim it against their DEC, but what if that veteran brought home $80,000 how is that “ off set” ?Riddick wrote:Every little bit helps.....
"Offsets
The benefit is offset by other income sources, such as amounts paid to you through the Canadian Forces Superannuation Act, commonly known as a military pension.
To encourage activities that are beneficial and meaningful such as a part-time job, the Income Replacement Benefit will allow you to earn up to $20,000 (2021) per year from employment before any offsets are applied."
Riddick
Unknown Soldier- CSAT Member
- Number of posts : 608
Location : MIR
Registration date : 2019-05-15
Re: DEC “ off set “ by pension question
thanks, but from the link it’s not really showing me what you’re referring to ,lol, l don’t know where to go?AirLog wrote:Good morning Unknown Soldier,
Go to this policy pare 91, https://www.veterans.gc.ca//pdf/about-vac/legislation-policies/policies/doc2829-income-replacement-benefit-25112020-eng.pdf. It may assist in explaining the offset policy.
AirLog
Unknown Soldier- CSAT Member
- Number of posts : 608
Location : MIR
Registration date : 2019-05-15
Re: DEC “ off set “ by pension question
Every little bit helps.....
"Offsets
The benefit is offset by other income sources, such as amounts paid to you through the Canadian Forces Superannuation Act, commonly known as a military pension.
To encourage activities that are beneficial and meaningful such as a part-time job, the Income Replacement Benefit will allow you to earn up to $20,000 (2021) per year from employment before any offsets are applied."
Riddick
"Offsets
The benefit is offset by other income sources, such as amounts paid to you through the Canadian Forces Superannuation Act, commonly known as a military pension.
To encourage activities that are beneficial and meaningful such as a part-time job, the Income Replacement Benefit will allow you to earn up to $20,000 (2021) per year from employment before any offsets are applied."
Riddick
Kramer- CSAT Member
- Number of posts : 670
Location : Where I live
Registration date : 2015-03-19
Re: DEC “ off set “ by pension question
Good morning Unknown Soldier,
Go to this policy pare 91, https://www.veterans.gc.ca//pdf/about-vac/legislation-policies/policies/doc2829-income-replacement-benefit-25112020-eng.pdf. It may assist in explaining the offset policy.
AirLog
Go to this policy pare 91, https://www.veterans.gc.ca//pdf/about-vac/legislation-policies/policies/doc2829-income-replacement-benefit-25112020-eng.pdf. It may assist in explaining the offset policy.
AirLog
AirLog- CSAT Member
- Number of posts : 246
Location : Edmonton
Registration date : 2017-11-19
Re: DEC “ off set “ by pension question
l think the question being asked was , if the civilian pension amounted to $500 a month, then the math was easy, the veterans DEC amount would then be reduced by $500 a month, but what if the veteran declares to VAC that they have taken home $150,000...how do you “ off set” that against a DEC monthly amount that may only be $1500 a month?AirLog wrote:Hi Unknown Soldier,
Be very careful here. Offsets are identified in the legislation. I am DEC with a private disability insurance with a private pension at 65. I will be electing to defer my private pension until a later date as it will be an offset to my IRB. The longer I defer the greater the pension. If I take a lump sum I must declare it to VAC as it will have an effect on my IRB. Better to read the legislation and do the math how it specifically pertains to an individuals situation. Lots to consider but don't blindly jump into any offsets without doing due diligence.
AirLog
Unknown Soldier- CSAT Member
- Number of posts : 608
Location : MIR
Registration date : 2019-05-15
Re: DEC “ off set “ by pension question
Hi Unknown Soldier,
Be very careful here. Offsets are identified in the legislation. I am DEC with a private disability insurance with a private pension at 65. I will be electing to defer my private pension until a later date as it will be an offset to my IRB. The longer I defer the greater the pension. If I take a lump sum I must declare it to VAC as it will have an effect on my IRB. Better to read the legislation and do the math how it specifically pertains to an individuals situation. Lots to consider but don't blindly jump into any offsets without doing due diligence.
AirLog
Be very careful here. Offsets are identified in the legislation. I am DEC with a private disability insurance with a private pension at 65. I will be electing to defer my private pension until a later date as it will be an offset to my IRB. The longer I defer the greater the pension. If I take a lump sum I must declare it to VAC as it will have an effect on my IRB. Better to read the legislation and do the math how it specifically pertains to an individuals situation. Lots to consider but don't blindly jump into any offsets without doing due diligence.
AirLog
AirLog- CSAT Member
- Number of posts : 246
Location : Edmonton
Registration date : 2017-11-19
DEC “ off set “ by pension question
Here is an interesting question l saw posted somewhere else but no one seemed to have the answer:
The veteran had a Diminished Earning Capability status and was getting a rate of Income Replacement Benefit til age 65 before it would be reduced.
However prior to ending up with a DEC they once held civilian employment long enough to now be entitled to a pension.
The veteran said they were aware that if they took a monthly pension from that civi job, the amount of new taxable income coming in, would be “ off set” or reduce their DEC entitlement by the same amount. So they never end up with more money than whatever the monthly DEC amount is.
But the veteran said they also have the option to take the pension all at once in a one time lump sum payment that could be anywhere from $100000-200000.
The vet was wondering how VAC would “ off set “ DEC by an amount that great when it might equal 2-3 years of monthly DEC payments.
Anyone ever heard of anything like that before ?.
The veteran had a Diminished Earning Capability status and was getting a rate of Income Replacement Benefit til age 65 before it would be reduced.
However prior to ending up with a DEC they once held civilian employment long enough to now be entitled to a pension.
The veteran said they were aware that if they took a monthly pension from that civi job, the amount of new taxable income coming in, would be “ off set” or reduce their DEC entitlement by the same amount. So they never end up with more money than whatever the monthly DEC amount is.
But the veteran said they also have the option to take the pension all at once in a one time lump sum payment that could be anywhere from $100000-200000.
The vet was wondering how VAC would “ off set “ DEC by an amount that great when it might equal 2-3 years of monthly DEC payments.
Anyone ever heard of anything like that before ?.
Unknown Soldier- CSAT Member
- Number of posts : 608
Location : MIR
Registration date : 2019-05-15
Page 2 of 2 • 1, 2
Similar topics
» Totally Confused???(Benefit Entitlements)
» Question regarding ELB, cia, pension.....etc
» Pension Splitting Question
» Question on Pension Acts...
» VAC PENSION REDUCTION BY VAC - QUESTION
» Question regarding ELB, cia, pension.....etc
» Pension Splitting Question
» Question on Pension Acts...
» VAC PENSION REDUCTION BY VAC - QUESTION
Permissions in this forum:
You cannot reply to topics in this forum