Facts and Figures Summary

Summary of Program Recipients

Traditional Programs
Program 2015–16 2016–17 2017–18 Percentage
Change
YTD
Dec 2018
2018–19
Forecast
Forecasted
Percentage
Change
Disability Pensions 124,148 116,031 108,877 -6.2% 103,918 101,500 -6.8%
Treatment BenefitsFootnote 1 81,689 79,964 78,752 -1.5% n/aFootnote 2 80,200 1.8%
Veterans Independence Program (VIP) 93,558 90,854 88,286 -2.8% n/aFootnote 2 85,100 -3.6%
War Veterans Allowance 2,445 2,151 1,895 -11.9% 1,696 1,710 -9.8%
New Veterans Charter Programs
Program 2015–16 2016–17 2017–18 Percentage
Change
YTD
Dec 2018
2018–19
Forecast
Forecasted
Percentage
Change
Disability Awards 57,315 63,599 69,694 9.6% 75,412 76,400 9.6%
Rehabilitation & New Veterans Charter (NVC) Support Services 8,651 11,787 13,233 12.3% 13,659 14,900 12.6%
Earnings Loss 5,746 11,625 14,870 27.9% 16,616 17,800 19.7%
Career Impact Allowance (CIA) 3,743 6,011 7,801 29.8% 11,428 14,000 79.5%
Canadian Forces Income Support 55 64 78 21.9% 78 100 28.2%
Supplementary Retirement Benefit 34 76 79 3.9% 56 90 13.9%
Career Transition Services/GrantFootnote 2 409 644 741 15.1% 535 10 -98.7%
Retirement Income Security Benefit (RISB) 41 72 124 72.2% 182 210 69.4%
Critical Injury Benefit 114 36 15 -58.3% 4 15 0.0%
Family Caregiver Relief Benefit (FCRB) 178 277 363 31.0% 356 40 -89.0%

Summary of Program Expenditures

Traditional Programs
Program (in $ millions) 2015–16 2016–17 2017–18 Percentage
Change
YTD
DEC 2018
2018–19
ForecastFootnote 3
Forecasted
Percentage
Change
Disability Pensions $1,404.3 $1,331.1 $1,261.2 -5.3% $940.7 $1,207.1 -4.3%
Other Health Purchased Services (incl. Treatment Benefits) $517.1 $590.1 $583.3 -1.2% $445.2 $670.6 15.0%
Veterans Independence Program $352.6 $350.2 $344.6 -1.6% $246.6 $350.4 1.7%
War Veterans Allowance $7.5 $6.5 $6.1 -6.2% $4.4 $5.7 -6.6%
New Veterans Charter Programs
Program (in $ millions) 2015–16 2016–17 2017–18 Percentage
Change
YTD
DEC 2018
2018–19
ForecastFootnote 3
Forecasted
Percentage
Change
Disability Awards $660.0 $700.0 $1,621.4 131.6% $998.2 $1,324.2 -18.3%
Rehabilitation & New Veterans Charter (NVC) Support Services $26.8 $33.5 $43.6 30.1% $36.7 $62.0 42.2%
Earnings Loss $180.3 $269.9 $420.1 55.7% $377.3 $497.1 18.3%
Career Impact Allowance (CIA) $51.5 $79.7 $123.1 54.5% $134.8 $229.4 86.4%
Canadian Forces Income Support $0.9 $1.1 $1.5 36.4% $1.1 $1.8 20.0%
Supplementary Retirement Benefit $0.1 $0.3 $0.3 0.0% $0.2 $0.4 33.3%
Career Transition Services/GrantFootnote 4Footnote 5 $0.0 $0.0 $0.0 94.7% $0.0 n/aFootnote 5 n/aFootnote 5
Retirement Income Security Benefit) $0.3 $0.5 $0.9 80.0% $1.1 $2.2 144.4%
Critical Injury Benefit $7.9 $2.5 $1.2 -52.0% $0.3 $1.1 -8.3%
Family Caregiver Relief Benefit $1.3 $2.1 $2.8 33.3% $0.3 $0.3 -89.3%

Note - The following programs came into effect April 1, 2018: Education and Training Benefit ; Veteran and Family Well-Being Fund; Caregiver Recognition Benefit; and Veteran Emergency Fund.

Analysis of VAC Facts and Figures

As of March 31, 2018, VAC estimated the total Veteran population in Canada to be 649,300, consisting of 48,300 War Service (WS) Veterans and 601,000 Canadian Armed Forces (CAF) Veterans. Both the WS and CAF Veteran populations are forecasted to decline through the next five years, but the decline in WS Veterans is expected to outpace the decline in CAF Veterans.

Veterans served by VAC account for approximately 18% of the Veteran population in Canada. As of March 31, 2018 VAC served 20,139 (42%) of the WS Veteran population and 96,644 (16%) of the CAF Veteran population. In addition, VAC provided benefits to 46,980 WS survivors, 10,986 CAF survivors, and administers benefits on behalf of 13,396 RCMP members or former members and their survivors.

Overall, total VAC clients (Veterans and survivors) decreased by 2.3% in 201718; this trend is expected to continue. The forecasted decrease is the result of an expected decrease of 18% in WS Veterans and a 8% decrease in WS survivor clients. CAF Veteran and survivor clients are expected to increase by 5% over the next year.

Pension For Life

April 1, 2019, Pension for Life (PFL) will be introduced. Pension for Life includes three new benefits: Pain and Suffering Compensation; Additional Pain and Suffering Compensation; and Income Replacement Benefit. The Pension for Life Benefits package is intended to meet the following objectives:

  • Providing recognition, income support and better overall stability to Canadian Armed Forces (CAF) members and Veterans who are living with a disability due to a service-related injury and/or illness.
  • Providing a holistic package that reintroduces lifelong monthly pain and suffering payments; implement a new recognition benefit, and consolidate six of seven existing income-related financial benefits.
  • Addressing concerns raised by military and Veteran communities and families by empowering CAF members and Veterans living with a disability, caused by a service-related illness or injury, to choose the form of compensation that works best for them and their families.

VAC’s 2019–20 planned spending is slightly lower than 2018-19 primarily attributed to the transition to the Pension for Life plan and gradual uptake of some of the Department’s other new programs – such as the Education and Training Benefit. As a result of offering monthly benefits through Pension for Life beginning in 2019, benefit payments will be spread over the lifetime of the Veteran, resulting in lower near term cash payments. That being said, the lifetime value of Veterans’ benefits will increase significantly as a result of these programs.

Overall, VAC’s program expenditures increased by 31% to $4,441.5 million in 2017–18 from $3,398.2 million in 2016–17. Expenditures are expected to decrease over the next three years and then will begin to increase starting in 2021–22.

Traditional Programs

Total expenditures for traditional programs serving WS Veterans and Survivors - Disability Pensions, and War Veterans Allowance (WVA) have declined in recent years. The decline is mainly due to decreasing numbers of WS Veterans and survivors. Expenditures for the Veterans Independence Program (VIP) have declined for the same reason.

Expenditures have been increasing since 2015–16 until 2017–18 due to the introduction of changes in Cannabis for Medical Puposes policy. Expenditures are expected to grow throughout the forecast cycle.

New Veterans Charter (NVC) Programs

NVC clients and expenditures have increased each year since implementation of the NVC on April 1, 2006. Clients and expenditures for every NVC program including the three largest [Disability Awards (DA), Earnings Loss Benefits (ELB), and Career Impact Allowance (CIA)], are expected to increase throughout the forecast period, except for Critical Injury Benefit (CIB), which was introduced in 2015–16.

Highlights of 2017–18 Trends

Earnings Loss Benefit

On October 1, 2016, VAC began issuing Earnings Loss Benefits (ELB) at 90% of pre-release salary instead of 75% which had been in place since 2006. This change had an immediate impact as all recipients who were already in receipt of ELB received increases, and many who were not in receipt due to other income started receiving payments. Monthly expenditures for the first six months of 2016–17 were less than $20 million each month. Monthly expenditures since the changes have averaged $25 million.

Enhancements to the Earnings Loss Program have increased the demand on the Rehabilitation Program as a Veteran is required to be in the Rehabilitation Program to be eligible for Earnings Loss Benefits. Rehabilitation and Earnings Loss clients were 13,233 and 14,870 respectively as of March 31, 2018.

Career Impact Allowance (CIA)

In April 2017, the Permanent Impairment Allowance (PIA) was renamed to Career Impact Allowance (CIA) in order to better reflect the program intent of providing compensation for loss of earnings capacity due to a service related injury or illness.

The first significant growth in CIA occurred in 2011, when VAC introduced changes to allow individuals in receipt of a Disability Pension to qualify for CIA; prior to that, only clients with a Disability Award could qualify. VAC also introduced a $1,000 monthly supplement to those CIA clients who were also deemed to have a Diminished Earnings Capacity (DEC). As of March 2018, about 56% of CIA clients were in receipt of the supplement. CIA expenditures for 2017–18 came in over the forecasted amount of $118.1 million.

As of April 1, 2017, a new grading scheme was implemented for CIA, which gave access to higher grade levels for some clients. The result is that a greater proportion of clients are in Grades 1 and 2 than previous to the change. Grade 1 increased from 0.5% to approximately 1% of CIA clients upon implementation of the new grading system. Grade 2 clients increased from 9.4% to approximately 34% of CIA clients. This resulted in a smaller ratio of clients in the lowest paying grade 3, changing from 90.1% to approximately 65% of CIA clients.

Other Health Purchased Services (OHPS)

OHPS expenditures decreased by $6.8 million from 2016–17 to 2017–18. OHPS expenditures are expected to increase in 2018–19 due to increased Treatment Benefits and payments for cannabis for medical purposes.

Disability Awards

During 2017–18, Disability Award (DA) payments were $1,621.4 million which was an increase of 132% from $700 million in 2016–17. This increase in expenditures was due to a one time DA additional amount to increase the maximum DA payment to $360,000. The one time DA amount was also in addition to a 10% increase in DA clients. DA clients are forecast to increase by another 10% in 2018–19 and expenditures are forecasted to be $1,324.2 million.

New Programs at VAC: 2018–19

Career Transition Services (CTS)

The Career Transition Services Program supports the transition to post-service life of eligible members, releasing members, Veterans, spouses/common-law partners, and survivors by providing access to services that will assist them in having the knowledge, skills and plan necessary to prepare for and obtain suitable civilian employment. Services are provided directly to clients through a national service provider.

Career Transition Services (CTS): RecipientsFootnote 6 and Expenditures
CTS Recipients & Expenditures Actuals as of March 31, 2018
2017–18
YTD
Dec 2018
Veterans - 1,249
Spouses - 12
Total CTS Recipients - 1,261
CTS Expenditures (in $ millions)Footnote 7 $1.7 $1.0
ForecastFootnote 3 - Career Transition Services (CTS): RecipientsFootnote 6 and Expenditures
CTS Recipients & Expenditures 2018–19 2019–20 2020–21 2021–22 2022–23
Veterans 1,740 3,030 3,990 4,700 5,230
Spouses 200 380 370 360 340
Total CTS Recipients 1,940 3,410 4,360 5,060 5,570
CTS Expenditures (in $ millions)Footnote 7 $3.2 $4.2 $5.1 $5.7 $6.1

Source: Chief Financial Officer and Corporate Services Branch

Education and Training Benefit (ETB)

The Education and Training Benefit provides funding for eligible participants to pursue education and training that will support them in a successful transition from military to post-service life, help them achieve their education and post-military employment goals, and better position them to be more competitive in the civilian workforce.

Education and Training Benefit (ETB): RecipientsFootnote 8 and Expenditures
ETB Recipients & Expenditures Actuals as of March 31, 2018
2017–18
YTD
Dec 2018
Recipients (Veterans) - 887
ETB Expenditures (in $ millions) - $8.1
ForecastFootnote 3 - Education and Training Benefit (ETB): RecipientsFootnote 8 and Expenditures
ETB Recipients & Expenditures 2018–19 2019–20 2020–21 2021–22 2022–23
Recipients (Veterans) 1,090 2,400 1,550 470 480
ETB Expenditures (in $ millions) $19.1 $44.0 $29.5 $9.9 $9.6

Source: Chief Financial Officer and Corporate Services Branch

Veteran and Family Well-Being Program

The Veteran and Family Well-Being Fund provides funding to organizations that conduct research, develop or implement innovative programs that improve the well-being of Veterans and their families. Veterans Affairs Canada will be calling for applications again in January 2019.

Veteran and Family Well-Being Program: RecipientsFootnote 9 and Expenditures
Veteran and Family Well-Being Fund Recipients & Expenditures Actuals as of March 31, 2018
2017–18
YTD
Dec 2018
Recipients (Organizations) - 21
Expenditures (in $ millions) - $3.0
ForecastFootnote 3Footnote 10 - Veteran and Family Well-Being Program: RecipientsFootnote 9 and Expenditures
Veteran and Family Well-Being Fund Recipients & Expenditures 2018–19 2019–20 2020–21 2021–22 2022–23
Expenditures (in $ millions) $3.0 $3.0 $3.0 $3.0 $3.0

Source: Policy and Commemoration

Veteran Emergency Fund (VEF)

The Veterans Emergency Fund provides funding to assist Veterans and their families during times of crisis and when facing emergency financial situations that threaten their health and well-being. Financial emergencies could include (but are not limited to) food, clothing, shelter, medical care, and expenses required to maintain safety and shelter.

Veteran Emergency Fund (VEF): RecipientsFootnote 11Footnote 12 and Expenditures
Veteran Emergency Fund Recipients & Expenditures Actuals as of March 31, 2018
2017–18
YTD
Dec 2018
Recipients - 576
Expenditures (in $ millions) - $0.9
ForecastFootnote 3 - Veteran Emergency Fund (VEF): RecipientsFootnote 11 and Expenditures
Veteran Emergency Fund Recipients & Expenditures 2018–19 2019–20 2020–21 2021–22 2022–23
VEF Expenditures (in $ millions) $1.0 $1.0 $1.0 $1.0 $1.0

Source: Chief Financial Officer and Corporate Services Branch

Caregiver Recognition Benefit (CRB)

The Caregiver Recognition Benefit formally recognizes the contribution caregivers make to the health and well-being of seriously injured Veterans who require continuous care and supervision, due to their service related physical and/or mental health condition(s). This benefit is paid directly to Veterans’ caregivers.

Caregiver Recognition Benefit Recipients and ExpendituresFootnote 13
Caregiver Recognition Benefit (CRB) Actuals as of March 31, 2018
2017–18
YTD
Dec 2018
RecipientsFootnote 14 - 577
Total Expenditures (in $ millions) - $2.7
ForecastFootnote 3 - Caregiver Recognition Benefit Recipients and ExpendituresFootnote 13
Caregiver Recognition Benefit (CRB) 2018–19 2019–20 2020–21 2021–22 2022–23
Recipients 500 640 780 840 890
Total Expenditures (in $ millions) $5.3 $7.1 $8.9 $10.3 $11.3

Source: Chief Financial Officer and Corporate Services Branch

Pension For Life (PFL)

April 1, 2019, Pension for Life (PFL) will be introduced. Pension for Life includes three new benefits: Pain and Suffering Compensation; Additional Pain and Suffering Compensation; and Income Replacement Benefit. The Pension for Life Benefits package is intended to meet the following objectives:

  • Providing recognition, income support and better overall stability to Canadian Armed Forces (CAF) members and Veterans who are living with a disability due to a service-related injury and/or illness.
  • Providing a holistic package that reintroduces lifelong monthly pain and suffering payments; implement a new recognition benefit, and consolidate six of seven existing income-related financial benefits.
  • Addressing concerns raised by military and Veteran communities and families by empowering CAF members and Veterans living with a disability, caused by a service-related illness or injury, to choose the form of compensation that works best for them and their families.
ForecastFootnote 3 - Pain and Suffering Compensation: Recipients
Pain and Suffering Compensation 2018–19 2019–20 2020–21 2021–22 2022–23
Veterans - 80,400 85,800 91,000 96,000
Survivors - 2,700 3,000 3,300 3,600
Subtotal - 83,100 88,800 94,300 99,600
Death Benefits - 710 790 880 970
Total Recipients - 83,810 89,590 95,180 100,570

Source: Chief Financial Officer and Corporate Services Branch

ForecastFootnote 3 - Pain and Suffering Compensation: Expenditures
Pain and Suffering Compensation
(in $ millions)
2018–19 2019–20 2020–21 2021–22 2022–23
Pain and Suffering Compensation - $662.6 $681.6 $745.8 $814.2
Death Benefits - $22.5 $22.3 $23.7 $25.3
Total ExpendituresFootnote 15 - $685.1 $703.9 $769.5 $839.5

Source: Chief Financial Officer and Corporate Services Branch

ForecastFootnote 3 - Additional Pain and Suffering Compensation: Recipients and Expenditures
Additional Pain and Suffering Compensation 2018–19 2019–20 2020–21 2021–22 2022–23
Recipients (Veterans) - 13,040 15,310 17,580 19,850
Expenditures (in $ millions) - $102.4 $119.7 $137.8 $156.5

Source: Chief Financial Officer and Corporate Services Branch

ForecastFootnote 3 - Income Replacement Benefit: RecipientsFootnote 11 and Expenditures
Income Replacement Benefit 2018–19 2019–20 2020–21 2021–22 2022–23
Temporary - 13,300 15,940 18,250 20,060
Permanent - 8,480 9,620 10,890 11,980
Total: Recipients (Temporary and Permanent) - 21,780 25,560 29,140 32,040
Expenditures (in $ millions) - $628.0 $740.7 $846.4 $941.4

Source: Chief Financial Officer and Corporate Services Branch


Date modified: