Disability Pension Corrective Payment

Background

Under the Pension Act, rates of pensions and allowances, including disability pensions, are adjusted (“escalated”) annually.

In 2017, the Office of the Veterans Ombudsman (OVO) completed an analysis of historical escalations and identified a discrepancy. The OVO released their findings publicly in November 2018.

VAC quickly secured a source of funds and began working to deal with the situation. We are issuing corrective payments for those affected. Each corrective payment scenario is different, however most payments will be approximately a few hundred dollars.

Questions and Answers

1. How many individuals were affected by this issue?
2. Will individuals affected by this issue be reimbursed for this?
3. How many corrective payments have been issued to date?
4. When can affected individuals expect to receive a corrective payment?
5. I am pretty sure I was affected by this. Do I need to apply for the corrective payment?
6. I received a payment with no explanation. Could this be my corrective payment?
7. What happens if the benefit recipient is deceased?
8. I am legally entitled to inherit the assets of a deceased benefit recipient. How do I apply for a corrective payment?
9. Can I get an estimate of the amount of the Corrective Payment owing on the deceased individual’s account?
10. I called to ask about a deceased benefit recipient when the discrepancy first made the news. Do I need to contact VAC again in 2020?
11. Will my payment include interest?
12. I believe I should receive a corrective payment OR I have already received a payment. When I log into My VAC Account, I see old decisions that appear to have been reviewed, or other information (former dependants, etc.) that should no longer be on my file from 2003-2010. Why is this? Will it impact my current VAC benefit payments?

Q1. How many individuals were affected by this issue?

A1. In 2018, we found that upwards of 270,000 individuals, including CAF and RCMP members, Veterans, survivors and dependants were affected.

Q2. Will individuals affected by this issue be reimbursed for this?

A2. Yes, we are working to issue corrective payments. Most individuals will receive a few hundred dollars, but each payment scenario is different.

Q3. How many corrective payments have been issued to date?

A3. As of June 2020, we have issued approximately $73 million in corrective payments to approximately 101,000 affected individuals.

Q4. When can affected individuals expect to receive a corrective payment?

A4. Corrective payments began in September 2019 and continue to be issued. If you were affected by this issue and currently receive a pension or other benefit from us, a corrective payment will be issued automatically. Not all payments will be issued at exactly the same time. Some complex cases are being processed and paid manually and will take more time.

Q5. I am pretty sure I was affected by this. Do I need to apply for the corrective payment?

A5. In 2018, we found that individuals who received disability pensions and certain related benefits between 2003 and 2010 were affected. If you were affected and are currently receiving a pension or other benefits that we administer, a corrective payment will be issued automatically.

If you are affected but no longer receive VAC benefits, we may need you to provide updated contact information so that we can issue the payment.

Q6. I received a payment with no explanation. Could this be my corrective payment?

A6. We are still making payments during the ongoing COVID-19 situation, however, letters explaining the corrective payment may arrive after the payment has been issued. If you received a payment and are unsure what it is for, we can check to see if it was your corrective payment.

Q7. What happens if the benefit recipient is deceased?

A7. If a benefit recipient is deceased, a corrective payment may be paid to their estate, or, if they apply, to a person who is legally entitled to inherit (or “succeed to”) their assets.

Estate representatives do not need to apply. For more information on having a corrective payment paid to the estate of a deceased benefit recipient, please contact us.

We generally do not maintain current information for representatives of estates so we may need updated contact information so that we can issue the payment to the estate. You may also have to provide a copy of the deceased benefit recipient’s death certificate and evidence that shows you are the legally appointed executor or other representative of the estate.

If you are legally entitled to inherit the assets of a deceased benefit recipient, you may apply to have a corrective payment paid to you. We need an application before a payment can be issued so that we can ensure you are legally entitled to receive it. Payments will be issued as applications are received and granted.

Q8. I am legally entitled to inherit the assets of a deceased benefit recipient. How do I apply for a corrective payment?

A8. You will be able to apply via an online application form, where you can also upload the required supporting documents, or by using a paper application and sending us hard copies of these documents. To apply, you will need to provide certain information and documents, including:

• Deceased’s permanent residence at time of death, place and date of death, and other identifiers (Service number or Regimental Number, and VAC File number or K number).
• Deceased’s death certificate
• Deceased’s will (if they died with a will)
• Release signed by all other persons legally entitled to inherit (or “succeed to”) the assets of the deceased (form provided in application)
• Proof of your identity

Q9. Can I get an estimate of the amount of the Corrective Payment owing on the deceased individual’s account?

A9. You can now request an estimate via the online portal, available through our website.

Q10. I called to ask about a deceased benefit recipient when the discrepancy first made the news. Do I need to contact VAC again in 2020?

A10.Yes. Individuals who are legally entitled to inherit the assets of a deceased benefit recipient will need to apply so that we have all of the required information and documentation to assess the applicant’s entitlement and grant the application.

Estate representatives do not need to apply. Representatives of estates are invited to contact VAC for information on how a corrective payment can be paid to an estate.

If you are the legally authorized representative of an estate, you may need to provide updated contact information to help us to issue the payment. In this case, you may also have to provide a copy of the deceased benefit recipient’s death certificate and evidence that you are the legally appointed executor or other representative of the estate.

Q11. Will my payment include interest?

A11. No, the payment will not include interest.

Q12. I believe I should receive a corrective payment OR I have already received a payment. When I log into My VAC Account, I see old decisions that appear to have been reviewed, or other information (former dependants, etc.) that should no longer be on my file from 2003-2010. Why is this? Will it impact my current VAC benefit payments?

A12. To calculate these corrective payments, we recreated your situation as it was during 2003-2010. Information that could appear your My VAC Account may include one-time awards and payments, and information on your file such as spouses and dependents, past or present.

This was done for this process only and it will not impact your current VAC payments, benefits or information.