Re: $ for $ deductions against IRB/DEC

by **Kramer** Thu 04 Aug 2022, 09:59

Unknown Soldier wrote: I saw this posted elsewhere but it never got a response , I’m going to ask it here to see if anyone knows answer.
If a veteran is IRB/DEC any additional money they take home ( l think they are allowed to earn $20k first), is deducted dollar for dollar. So if a vet was taking home $3000 a month on IRB and had an additional source of income that equaled a $1000 a month, then VAC would reduce the veterans IRB to $2000 a month.
When the veteran turns 65 , IRB/DEC is further reduced, 70% of 90%, or something like that, and both CPP and OAS are further deducted from IRB/DEC, which in many veterans cases could make their IRB/DEC only $2-500 a month ( though they would now also get CPP/OAS).
The question posed was, a soldier said they were entitled to a civilian pension before 65, but chose not to take it as it did nothing for them once it was deducted against IRB/DEC....but, once that veteran turns 65, and all these other deductions occur, if in fact the veterans IRB/DEC was reduced to say, $300 a month, but the payout for the civilian pension they never touched all these years was $500 a month,
Would it now make sense and or be possible to take that civilian pension, even though it would reduce the veterans IRB/DEC take home to $0, the veteran would still be in $200 a month, does that make sense?

Unfortunately, I cannot provide an accurate answer as I am not 65. However, I believe it to be an important question as people who fall into this group should have this answered prior to reaching 65 and speculating what may or may not happen could be financially disheartening.

My understanding is that the 20,000.00 threshold/limit did not affect anything negatively??

If there is anyone who could shed some light into this matter, it will be appreciated. I am sure there are people who could clarify if you would be so kind to provide your input.

by Unknown Soldier Wed 03 Aug 2022, 09:19

I saw this posted elsewhere but it never got a response , I’m going to ask it here to see if anyone knows answer.
If a veteran is IRB/DEC any additional money they take home ( l think they are allowed to earn $20k first), is deducted dollar for dollar. So if a vet was taking home $3000 a month on IRB and had an additional source of income that equaled a $1000 a month, then VAC would reduce the veterans IRB to $2000 a month.
When the veteran turns 65 , IRB/DEC is further reduced, 70% of 90%, or something like that, and both CPP and OAS are further deducted from IRB/DEC, which in many veterans cases could make their IRB/DEC only $2-500 a month ( though they would now also get CPP/OAS).
The question posed was, a soldier said they were entitled to a civilian pension before 65, but chose not to take it as it did nothing for them once it was deducted against IRB/DEC....but, once that veteran turns 65, and all these other deductions occur, if in fact the veterans IRB/DEC was reduced to say, $300 a month, but the payout for the civilian pension they never touched all these years was $500 a month,
Would it now make sense and or be possible to take that civilian pension, even though it would reduce the veterans IRB/DEC take home to $0, the veteran would still be in $200 a month, does that make sense?