Disability benefits
Veteran Affairs Canada (VAC) disability benefits are financial payments to individuals who have a service-related disability:
- Disability pension (DP): The Pension Act of 1919 provides the framework for the DP, which is a tax-free monthly payment. The amount is based on the assessment (i.e. medical impairment and impact on quality of life) and the degree to which the disability is related to service.
- Disability award (DA): established in 2006 as part of the Veterans Well-being Act (formerly called the Canadian Forces Members and Veterans Reestablishment and Compensation Act), provides a tax-free payment for a disability resulting from military service.
- Pain and Suffering Compensation (PSC): in April 2019, the DA was replaced with the PSC, a tax-free life-time monthly or lump sum benefit. The amount is based on the assessment (i.e. medical impairment and impact on quality of life) and the degree to which the disability is related to service.
Disability benefits also provide financial support or compensation for the survivors of deceased Veterans and members who died in service or as a result of a service-related illness or injury. A survivor is a spouse, common-law partner, or dependent child of a deceased Veteran or serving member. Survivors may receive a DP and/or a PSC up to 100%.
VAC also administers the RCMP disability benefits granted under the RCMP Superannuation Act, in accordance with the Pension Act. These include compensation for the survivors of deceased RCMP members who died in service or as a result of a service-related illness or injury. RCMP members and former members are not eligible for benefits under the Veterans Well-being Act.
Communicating with the survivor after the Veteran passes away
When a Veteran or client in receipt of a benefit or service dies, VAC promptly communicates with the family or authorized contactFootnote 1. Within two days of receiving a notification of death, VAC sends a Condolence Letter expressing sympathy and indicating to contact VAC if they have any questions. It does not contain information about VAC benefits and services. Five days later, VAC sends the Benefit Information LetterFootnote 2, with information on what services and benefits will change, continue or discontinue.
Calculation of the survivor’s pension
Survivor benefits decisions are usually a complex process involving a vulnerable population. Delivery of these benefits requires input from many areas of the Department.
In straightforward cases where an individual was married and in receipt of a DP, the survivor will continue to receive the same DP in full for the first year. After this, the survivors will receive:
- a full survivor's pension, if the DP was 48% or greater; or
- one-half of the DP if the pensioner was receiving a DP between 5% and 47%.
Where the member/Veteran was in receipt of a DA/PSC, and the member/Veteran elected for a lump sum payment, there is no remaining amount to be disbursed to the survivor. If the member/Veteran was receiving monthly PSC at the time of their death, the remaining amount of what the member/Veteran would have received if they had chosen a lump sum, less the monthly amount already paid, is paid as a lump sum to the survivor/dependents. Eligible survivors may also apply for posthumous award of disability benefits, or reassessment of entitled conditions where updated medical info is available.
Adjudication
In complex cases, such as determining eligibility, posthumous applicationsFootnote 3 or an additional/increased disability benefit in respect of an entitled condition, adjudication decisions are made by: the Veteran Benefit Teams (VBT) and Benefits Adjudication and Processing Unit (BAPU)Footnote 4:
- VBT: a multi-disciplinary team that can rapidly process an application from intake to adjudication. Consists of Disability Services Assistants, Benefits Program Officers, and Disability Adjudicators.
- BAPU: processes disability benefits claims and financial benefits for Veterans, RCMP, CAF members and their families. Also responsible for survivor eligibility, DP continuation and Survivor pension, and payment processing. Consists of Benefits Program Officers and Payment Officers.
Area Office role
Area Offices assist in processing disability benefits claims and financial benefits for survivors. Case Managers and Veteran Service Agents are responsible for the Condolence Letter and Benefit Information Letter processes and provide guidance to survivors throughout the disability benefits application process.
Of the 5,460 Veterans who passed away in 2019, 1,775 (33%) had survivors who subsequently received disability benefits from VACFootnote 5.