Source: https://veterans-ombudsman.gc.ca/eng/reports/reports-reviews/risk-assessment-benchmark-benefits
Timestamp: 2020-06-01 21:50:34
Document Index: 210946946

Matched Legal Cases: ['art 2', 'art 2', 'art 3', 'art 2', 'art 2', 'art 6', 'art 2', 'art 6', 'art 2', 'art 6', 'art 2', 'art 2', 'art 3', 'art 4']

The Canadian Forces Members and Veterans Re-establishment and Compensation Act came into effect on April 1, 2006. This act including subsequent amendments is referred to in this report as the New Veterans Charter (NVC). As per section 2.1 of the NVC, the stated purpose of the NVC is to "recognize and fulfil the obligation of the people and Government of Canada to show just and due appreciation to members and veterans for their service to Canada. This obligation includes providing services, assistance and compensation to members and veterans who have been injured or have died as a result of military service and extends to their spouses or common-law partners or survivors and orphans. This Act shall be liberally interpreted so that the recognized obligation may be fulfilled."Footnote 1
The NVC has a focus on rehabilitation and re-integration into civilian life. As described by Veterans Affairs Canada (VAC), "The New Veterans Charter contains a new program mandate that is based on years of study and consultation. Research has identified the need for VAC programs to focus on rehabilitation and re-integration to civilian life, with the aim of helping CF Veterans regain employment and attain their fullest potential. Studies highlighted the need to align the approach with the best practices of modern disability management."Footnote 2
NVC: The NVC has a focus on reintegrating injured Veterans into the workplace, and providing financial support where required. The income replacement disability benefit under the NVC for those with a service related injury or illness is called the Earnings Loss Benefit (ELB). VAC defines the ELB as "a benefit designed to provide financial compensation in recognition of the economic impact that a service related or career ending injury has on a Veteran's earnings capacity following release."Footnote 3 The benefit can cover Temporary Earnings Loss while a Veteran is participating in a rehabilitation program, or Extended Earnings Loss payable to age 65 if the Veteran is unable to perform any occupation that would be considered suitable gainful employment. Benefits are also payable to surviving spouses and/or orphans. After age 65, the Retirement Income Security Benefit (RISB) offers retirement income for recipients whose ELB ceases at that age.
an injury or a disease that is a consequence of an injury or a disease described in paragraph (c)."Footnote 4
B is an amount that is payable to the veteran for a month from prescribed sources. These offsets include payments under the Canadian Forces Superannuation Act (CFSA), Canadian Pension Plan (CPP)/Quebec Pension Plan (QPP) benefits, and any other employment income."Footnote 5
There are proposed changes to the ELB formula in the Government of Canada's 2016 Budget (Budget 2016). This includes increasing the earnings replacement ratio in part A of the above formula to be 90% of pre-release earnings. The minimum salary will be amended to be based on a Senior Private's salary, instead of a Basic Corporal's salary. If passed, these changes will be effective October 1, 2016.Footnote 6
WSIB: Under WSIB's LOE benefit, annual benefit amounts for injuries on or after January 1, 1998 are payable at 85% of pre-injury earnings after tax less net average earnings the individual is able to earn in suitable and available employment or business after the injury.Footnote 7 Pre-injury earnings are based on the most recent earnings received from all employers combined. Benefits payable under the Canadian Pension Plan or the Quebec Pension Plan are also deducted from the amount payable under the LOE. The minimum net salary is currently defined as $20,454, resulting in a minimum benefit amount of $17,386 under the LOE, less applicable offsets.Footnote 8 Unlike the ELB, the LOE has a maximum on annual covered earnings. The "annual wage ceiling" is defined as 175% of the average industrial wage for Ontario. With the current average industrial wage of $50,307, the maximum annual covered earnings for the LOE is $88,000.Footnote 8 LOE benefits are not taxable.
NVC: Under Section 18 of Part 2 of the NVC, "The earnings loss benefit begins to be payable on the day on which the Minister determines that a rehabilitation plan or a vocational assistance plan should be developed. For greater certainty, if the determination is in respect of a member, the earnings loss benefit is not payable until the day after the day on which the member is released from the Canadian Forces."Footnote 9 Benefits are then payable until the Veteran completes their rehabilitation or vocational assistance plan. In the event that the Minister determines the Veteran receiving the ELB is unable to engage in suitable gainful employment as a result of being totally and permanently incapacitated, benefits are payable until the earlier of the date the member is able to engage in suitable gainful employment, or age 65.
the day on which the worker is no longer impaired as a result of the injury"Footnote 10
NVC: The ELB is currently annually indexed at the rate of inflation as measured by the percentage increase in the Consumer Price Index (CPI), to a maximum of 2% per year. We note that there are proposed changes to the increase rate in Budget 2016, where the 2% cap on inflation will be removed, and benefit increases will match increase rates in a Senior Private's salary. If approved, these changes will become effective for the ELB on October 1, 2016.Footnote 11
WSIB: With the exception of a worker whose loss of earnings is 100%, LOE benefits are annually indexed at a rate of 0.5 x % change in CPI – 1%, with a minimum of 0% and a maximum of 4%.Footnote 12 Where the worker has a 100% loss of earning, the applicable indexing factor is the full % change in CPI, with a minimum of 0% and no maximum. We note that this section of the WSIB Act has been repealed. Effective January 1, 2018, all LOE benefits will be annually indexed to the full CPI, with a minimum of 0% and no maximumFootnote 10.
b) a non-service-related injury or disease that was aggravated by service."Footnote 13
minus 1 per cent of the net average earnings for each year by which the spouse's age on the date of the worker's death is less than 40."Footnote 14
Section 48 (4) Part VI of the Workplace Safety Insurance Act outlines: "If the deceased worker is survived by a spouse and one or more children, the spouse is entitled to be paid, by periodic payments, 85 per cent of the deceased worker's net average earnings until the youngest child reaches 19 years of ageFootnote 14. The minimum amount payable under this clause is currently set at $22,588 per year.Footnote 15 In the event that the child or children do not reside with the spouse or are not in the custody of the spouse, the Board will divide the benefit amongst the spouse and the child(ren) in a manner deemed appropriate by the Board.
Per Section 48 (14) Part VI of the Workplace Safety Insurance Act, "If there is no spouse or if the spouse dies and the deceased worker is survived by only one dependent child, the dependent child is entitled to be paid, by periodic payments, 30 per cent of the deceased worker's net average earningsFootnote 14. Similar to other LOE benefits, there is a minimum net average earnings amount currently set at $20,454 for dependent child/children benefit. Payments for each additional child are 10% of the deceased worker's net average earnings, up to a maximum of 85% of the deceased works net average earnings for all children combined.
C is the total amount that is payable to the veteran for a month from prescribed sources."Footnote 16
B is the total amount payable to the survivor in respect of the veteran for a month from prescribed sources."Footnote 17
B is the total amount that is payable to the survivor in respect of the member or veteran for a month from prescribed sources."Footnote 17
A Veteran receiving the ELB may also be eligible for the Supplementary Retirement Benefit (SRB) at age 65. The NVC does not explicitly define the benefit amount of the SRB. Part 2, Section 26 states: "The Governor in Council may make regulations respecting the amount of the supplementary retirement benefit payable in respect of any class or classes of veterans or survivors."Footnote 18 It is our understanding that the SRB is currently payable as a taxable lump sum, equal to 2% of the total ELB amount received from the date of first payment until age 65. The SRB is also payable to surviving spouses who were in receipt of the ELB.
WSIB: If a worker has received the WSIB LOE benefit for at least 12 continuous months, the Board sets aside an amount of 5% of every subsequent LOE payment. The worker may also elect to set aside an additional amount of 5% of their LOE payment, which would be deducted from their LOE benefit. At age 65, the worker becomes eligible for WSIB's Loss of Retirement Income (LRI) benefit. The LRI benefit amount is equal to the amount set aside by the Board and the contributions by the worker, plus accumulated investment income on those amounts. At age 65, this accumulated amount is then payable at the worker's preferred payment scheme, either as a lump sum or in monthly payments. There are no offsets to the LRI benefit payments. Under WSIB's LOE benefit, payments for loss of retirement income do not apply for a worker who is 64 years of age or older at the date of injury.Footnote 19
Family Caregiver Relief Benefit: The Family Caregiver Relief Benefit (FCRB) is a tax-free lump sum grant for Veterans receiving ongoing care who also received a Disability Award. The purpose of the FCRB is to allow a Veteran to pay for their required support when an informal caregiver is temporarily unavailable. An informal caregiver is defined under part 3, Section 65.1(c) as "a person who is 18 years of age or older plays an essential role in the provision or coordination of the ongoing care in the veteran's home for which the person receives no remuneration."Footnote 20
WSIB has a Health Care component. If necessary, the Health Care benefit allows for the services of an attendant. This benefit under WSIB would allow for payment of the attendant, rather than a lump sum grant as is the case with the FCRB. The Workplace Safety and Insurance Act does not define an annual limit per person for the services of an attendant, but rather states "A worker who sustains an injury is entitled to such health care as may be necessary, appropriate and sufficient as a result of an injury."Footnote 21
Death Benefit: The Death Benefit is paid to the surviving spouse or children when a Veteran dies due to a sudden service-related event, within 30 days of the event. The Death Benefit is structured as a one-time, non-taxable lump sum benefit. The current maximum amount payable for the Death Benefit is $310,379.Footnote 22 As outlined in Budget 2016, the intention is to increase this maximum amount to $360,000 in 2017.Footnote 23 The Death Benefit is meant to recognize the impact of the loss a family is faced with, and is not meant to be seen as an Economic benefit similar to Life Insurance.
Surviving Spouses may be eligible for the WSIB Death Benefit, which is payable as a lump sum in the event of a worker's death results from an injury. The benefit amount varies based on the age of the surviving spouse, with younger spouses receiving a larger benefit. In 2016, the minimum lump sum payable is $39,780, while the maximum amount payable is $119,339.Footnote 24
Detention Benefit: VAC describes the Detention Benefit as a benefit that "recognizes and compensates a member for the non-economic impacts arising from the time of detainment."Footnote 25 The Detention Benefit is paid as a one-time non-taxable lump-sum, with the payment amount varying depending on number of days the Veteran was detained while serving in the CAF. The benefit is payable for those who were detained by an enemy, opposing force or terrorist group, for a minimum of 30 days. If a Veteran dies before making an application, or after making an application but before a decision is made on the payment of the benefit, the Detention Benefit is payable to the estate of the Veteran.
Disability Award: The Disability Award is payable as a non-taxable benefit to Veterans who suffer an injury or illness resulting from their service in the military. Payment amounts depend on assessment of the level of disability, and the degree to which the disability is related to the Veteran's service. At the Veteran's discretion, the payments can be made as a lump sum, or annual payments over a period of time chosen by the Veteran. The Disability Award does not vary based on the Veteran's pre-release income level. The current maximum amount payable for the Disability Award is $310,379.Footnote 26 As outlined in Budget 2016, the intention is to increase this maximum amount to $360,000 in 2017.Footnote 27
Under WSIB, the Non-Economic Loss (NEL) benefit is the benefit that is most similar to the Disability Award under the NVC. Similar to the Disability Award, the amount payable for the NEL is non-taxable, and varies according to the worker's level of impairment from the injury. Also similar to the Disability Award, workers are allowed to elect a lump sum payment, or monthly payments. Unlike the Disability Award, the NEL varies by age, with younger workers receiving a higher benefit. The NEL has a much lower benefit level than the Disability Award, with a maximum amount payable of $84,514.Footnote 28
Canadian Forces Members and Veterans Re-establishment and Compensation Act, S.C. 2005, c. 21. Purpose 2.1. Current as at May 24, 2016. Available http://laws-lois.justice.gc.ca/eng/acts/C-16.8/ (Accessed May 25, 2016).
"New Veterans Charter Evaluation – Phase I (Final: December 2009)", Veterans Affairs Canada, 1.0 Backgroundhttp://www.veterans.gc.ca/eng/about-us/reports/departmental-audit-evaluation/2009-12-nvc/1-0#ftnref1 (accessed June 10, 2016).
"Annex B – Summary of NVC Programs", Veterans Affairs Canada, http://www.veterans.gc.ca/eng/about-us/reports/departmental-audit-evaluation/2010-08-nvc-evaluation-phase-2/annexb (accessed June 7, 2016).
Canadian Forces Members and Veterans Re-establishment and Compensation Act, S.C. 2005, c. 21. Part 2, Section 7. Current as at May 24, 2016. Available http://laws-lois.justice.gc.ca/eng/acts/C-16.8/ (Accessed May 25, 2016).
Canadian Forces Members and Veterans Re-establishment and Compensation Act, S.C. 2005, c. 21. Part 2, Section 19. Current as at May 24, 2016. Available http://laws-lois.justice.gc.ca/eng/acts/C-16.8/ (Accessed May 25).
Government of Canada's 2016 Budget. Tabled in the House of Commons by the Honourable William Francis Morneau, Minister of Finance, March 22, 2016. Chapter 5, pg. 175.
Workplace Safety and Insurance Act, 1997. Part 6, Section 43. Updated with amendments to April 6, 2016.
"Benefit Dollar Amounts – Accidents from 1998", WSIB Operational Policy. www.wsib.on.ca (Accessed June 9, 2016).
Canadian Forces Members and Veterans Re-establishment and Compensation Act, S.C. 2005, c. 21. Part 2, Section 18. Current as at May 24, 2016. Available http://laws-lois.justice.gc.ca/eng/acts/C-16.8/ (Accessed May 25, 2016).
Government of Canada's 2016 Budget, Tabled in the House of Commons by the Honourable William Francis Morneau, Minister of Finance, March 22, 2016. Chapter 5, pg. 176.
Workplace Safety and Insurance Act, 1997. Part 6, Section 49. Updated with amendments to April 6, 2016.
Canadian Forces Members and Veterans Re-establishment and Compensation Act, S.C. 2005, c. 21. Part 2, Section 22. Current as at May 24, 2016. Available http://laws-lois.justice.gc.ca/eng/acts/C-16.8/ (Accessed May 25, 2016).
Workplace Safety and Insurance Act, 1997. Part 6, Section 48. Updated with amendments to April 6, 2016.
2016 Compensation Amounts for Survivors, WSIB Ontario. www.wsib.on.ca (accessed June 9, 2016).
Canadian Forces Members and Veterans Re-establishment and Compensation Act, S.C. 2005, c. 21. Part 2, Section 40. Current as at May 24, 2016. Available http://laws-lois.justice.gc.ca/eng/acts/C-16.8/ (Accessed May 25, 2016).
Canadian Forces Members and Veterans Re-establishment and Compensation Act, S.C. 2005, c. 21. Part 2, Section 26. Current as at May 24, 2016. Available http://laws-lois.justice.gc.ca/eng/acts/C-16.8/ (Accessed May 25, 2016).
Loss of Retirement Income benefit, WSIB Ontario. www.wsib.on.ca (accessed June 9, 2016).
Canadian Forces Members and Veterans Re-establishment and Compensation Act, S.C. 2005, c. 21. Part 3, Section 65. Current as at May 24, 2016. Available http://laws-lois.justice.gc.ca/eng/acts/C-16.8/ (Accessed May 25, 2016).
Workplace Safety and Insurance Act, 1997. Part 4, Section 33. Updated with amendments to April 6, 2016.
"Rates Effective from: January 1, 2016", Veterans Affairs Canada http://www.veterans.gc.ca/eng/services/rates (accessed June 9, 2016).
Government of Canada's 2016 Budget, Tabled in the House of Commons by the Honourable William Francis Morneau, Minister of Finance, March 22, 2016. Chapter 5, pg. 177.
"Annex B – Summary of NVC Programs", Veterans Affairs Canada
"Rates Effective from: January 1, 2016", Veterans Affairs Canada http://www.veterans.gc.ca/eng/services/rates#disaward (accessed June 9, 2016).
Government of Canada's 2016 Budget, Tabled in the House of Commons by the Honourable William Francis Morneau, Minister of Finance, March 22, 2016. Chapter 5, pg. 175.
"Benefit Dollar Amounts – Accidents from 1998", WSIB Operational Policy. www.wsib.on.ca (Accessed June 9, 2016)