Got a question from a fellow veteran. Can you answer?

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Got a question from a fellow veteran. Can you answer?

Post by ScottyG on Fri 23 Mar 2018, 1:07 pm

Based on these factors below what will change after April 2019 and once he turns 65? What would his actual numbers be? Will CIA s be taxable or non taxable? Anyone hazard to guess  at his actually income pre 65 and post 65 years of age? He is confused so am I ! He called VAC and they do not know!  Go figure!

Pierre is 64 in less than 4 months (turns 65, Jun 3 2019)
50% - pension tax free granted in 2005- $1745
25%- DA post 2006- $82000
CIA- $609 Taxable
CIAs-$1120 Taxable
DEC - deemed DEC Feb 15 2018
Sisip LTD 70%-$1725
Top up from VAC to 90%-$1100
Also receives long service pension- $2950
cpp will be in 2019 at 65 -$900
also old age pension at 65 -  $540
Receives VIP benefits too
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Re: Got a question from a fellow veteran. Can you answer?

Post by JAFO on Fri 23 Mar 2018, 6:10 pm

Scotty until the Libs release the details of the legislation they presented in December WE ALL are going to be lost.

It's upsetting and sad that the Libtards haven't figured it out that broken veterans are getting wound up because of their dereliction of duty by not giving us the details of this Pension For Life.
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Re: Got a question from a fellow veteran. Can you answer?

Post by Trooper on Fri 23 Mar 2018, 7:08 pm

Well Scotty like JAFO states until they release the legislative details it's difficult to accurately give numbers, especially given that each individual will have their own unique situation.

I can attempt to answer the questions with what I have understood thus far.

- With the 50% pension act pension he will obviously continue receiving that for life.

- With he's 25% DA he will be entitled to a VAC calculation come April 01, 2019 to see if he qualifies for a Pain and Suffering Compensation (PSC) as per the following link example: http://www.veterans.gc.ca/GCWeb/pdf/Retro/PFL-infographic.pdf

- With he's CIA this will automatically be converted to the Additional Pain and Suffering Compensation (APSC) at the same level he is receiving for the CIA. (This will be Tax Free)

- With he's CIA Supplement according to the VAC spokesperson from the Ombudsman town hall the following is what will take place come April 01, 2019;

Those who are receiving the CIA Supplement come April 2019 are protected in this particular way - VAC will look at what this individual is receiving for the IRB. Then they will look at the CIA Supplement inclusive, then they will look at what amount is greater, the individual will receive the greater amount. Remember at 65 the IRB is reduced to 70% less offsets. So the CIA Supplement will be included in the calculation for the IRB, if this amounts to a greater payment they will receive the greater amount.

- With respect to the DEC according to the VAC spokesperson this is what is needed to qualify for the IRB.

- With respect to SISIP if he was released prior to Jan 01, 1995 he gets it for life, after Jan 01, 1995 it will end at age 65.

- The carry over of 15% top up to the ELB will be included in the IRB calculation.

- The VIP remains until it's no longer needed.

Those receiving any of the following three benefits, ELB, CIA Supplement, or the RISB come April 01, 2019 will be protected in being included in the IRB calculation.

The CF Pension, and CPP will be deducted from the IRB.


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Re: Got a question from a fellow veteran. Can you answer?

Post by ScottyG on Sat 24 Mar 2018, 12:25 am

Thanks Trooper- looks like it may be close to the real deal-
One point i see  for calculation purposes they will look at the ltd from sisip prior to turning 65 and reduce it to 70% not just the 15% top up that he receives from VAC.

I am using this as my reference to make this statement: ( Do you have a better one?)

****The Canadian Armed Forces Long Term Disability insurance program
determined that Jamal was totally disabled at the time he was medically
released. Later, VAC’s separate assessment established that Jamal has a
diminished earning capacity. Therefore, Jamal’s income replacement and
rehabilitation needs will be addressed through a partnership between CAF
LTD and VAC until he reaches the age of 65. ***At that point, VAC will take full
responsibility for delivering Jamal’s programs and services****.
Between the CAF LTD and the VAC Income Replacement Benefit, during
rehabilitation Jamal will receive income replacement totaling 90% of his
salary at release. Given VAC’s assessment that Jamal has a diminished
earning capacity, he will continue to be eligible for the IRB for life, totaling a
net lifetime of up to $2.132M (after tax). Once Jamal reaches the age of 65,
his Income Replacement Benefit will continue at a reduced rate....

http://www.veterans.gc.ca/GCWeb/pdf/Veteran-Story/Jamal.pdf
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Re: Got a question from a fellow veteran. Can you answer?

Post by Trooper on Sat 24 Mar 2018, 7:54 am

ScottyG wrote:Thanks Trooper- looks like it may be close to the real deal-
One point i see  for calculation purposes they will look at the ltd from sisip prior to turning 65 and reduce it to 70% not just the 15% top up that he receives from VAC.

I am using this as my reference to make this statement: ( Do you have a better one?)

****The Canadian Armed Forces Long Term Disability insurance program
determined that Jamal was totally disabled at the time he was medically
released. Later, VAC’s separate assessment established that Jamal has a
diminished earning capacity. Therefore, Jamal’s income replacement and
rehabilitation needs will be addressed through a partnership between CAF
LTD and VAC until he reaches the age of 65. ***At that point, VAC will take full
responsibility for delivering Jamal’s programs and services****.
Between the CAF LTD and the VAC Income Replacement Benefit, during
rehabilitation Jamal will receive income replacement totaling 90% of his
salary at release. Given VAC’s assessment that Jamal has a diminished
earning capacity, he will continue to be eligible for the IRB for life, totaling a
net lifetime of up to $2.132M (after tax). Once Jamal reaches the age of 65,
his Income Replacement Benefit will continue at a reduced rate....

http://www.veterans.gc.ca/GCWeb/pdf/Veteran-Story/Jamal.pdf

The way I read that is SISIP will be included in the calculation up until Jamal reaches 65, once he reaches 65 given that VAC has determined him DEC, he will fall completely under the VAC umbrella for the IRB at a reduced rate of 70% less offsets. (SISIP will end at age 65)

One point here regarding my statement of yesterday " With respect to SISIP if he was released prior to Jan 01, 1995 he gets it for life, after Jan 01, 1995 it will end at age 65."
This is true however the (SISIP for life part) does not pertain to the PFL as the PFL is only for those receiving benefits from April 2006 forward.
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Re: Got a question from a fellow veteran. Can you answer?

Post by ScottyG on Sat 24 Mar 2018, 11:58 am

Trooper or anyone else here feel free to analyze these numbers it is confusing to me but it seems to be clearing up. Thanks in advance for the opinions. I think many people are asking the same question.

Pre 65
50% - pension tax free granted in 2005- $1745  -----
25%- DA post 2006- $82000
CIA- $609 Taxable
CIAs-$1120 Taxable
DEC - deemed DEC Feb 15 2018
Sisip LTD 70%-$1725
Top up from VAC to 90%-$1100
Also receives long service pension- $2950
cpp will be in 2019 at 65 -$900
also old age pension at 65 -  $540
Receives VIP benefits too

Pierre's post 65
30% reduction in Sisip ltd
30% reduction in Vac Ltd ( new dollar amount will be received from VAC alone)
Received pre 65 at 90% =$2825  total LTD
post 65  reduced 30% =$2118
Subtract off sets  cpp/old age pension = $1400
So his IRB post 65 = $718 + CIA non taxable and CIAs [His CIA and CIAs are for life and will not be reduced (grandfathered)]



In conclusion, Pierre will see a reduction of total monthly income of Approx $378 per month  or $4536 per year at age 65.


I didn't include this possible pension for life
** His PFL "may" be about 200 + or- based on 25%***
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Re: Got a question from a fellow veteran. Can you answer?

Post by Trooper on Sat 24 Mar 2018, 6:41 pm

SISIP will no longer be in play once he reaches 65.

The IRB is basically 90% of your pre release salary less offsets, OR based on a minimum threshold of ($48,600), and the 90% is reduced to 70% once he reaches 65.

The best way to calculate your numbers is to look at it this way;

The Pain and Suffering Compensation (PSC) will remain as is once he reaches 65.

The Additional Pain and Suffering Compensation (APSC) will remain as is once he reaches 65.

The Income Replacement Benefit (IRB) will be reduced to 70% less offsets once he reaches 65.

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Re: Got a question from a fellow veteran. Can you answer?

Post by ScottyG on Sat 24 Mar 2018, 10:00 pm

Thanks trooper - It seems I am not able to explain this right. The sisip stops at 65 I agree. But- VAC will then top up the lost income from sisip & it is reduced to 70%. Just to ease people minds the monies you received from Sisip up until 65 is not completely lost. VAC keep you at 70% of your income minus offsets. As i type this you i realize you are saying the same thing. LOL
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Re: Got a question from a fellow veteran. Can you answer?

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