Currently, the Earnings Loss Benefit—upon which many moderately to severely disabled Veterans rely—is not available after the age of 65, resulting in a drop in the Veteran’s annual income.
The new Canadian Government’s Retirement Income Security Benefit announced Mar. 9, would provide these Veterans with continued assistance in the form of a monthly income support payment beginning at age 65.
The proposed Retirement Income Security Benefit would work in concert with existing services and benefits to establish a continuum of support that spans a disabled Veteran’s entire life. It is designed for those whose ability to save for retirement was directly impacted by their service to our country. Income support would also be extended to families through continued payment of a monthly benefit to the Veteran’s survivor.
“The Retirement Income Security Benefit meets the intent of my recommendation to the House of Commons Standing Committee on Veterans Affairs on the most urgent New Veterans Charter shortcoming: after age 65 financial support. I congratulate the Minister of Veterans Affairs for his leadership on this issue and I encourage all parliamentarians to pass this new pension benefit without delay,” stated Guy Parent, Canada’s Veterans Ombudsman.
Government of Canada stated that it recognizes the complexity of financial benefits available for moderately to severely disabled Veterans. Veterans Affairs Canada (VAC) is currently examining ways to combine these new and existing supports into a single monthly pension for severely injured Veterans.
• The Retirement Income Security Benefit would ensure that an eligible Veteran’s total annual income is at least 70% of what he or she received in financial benefits from VAC before age 65.
• Monthly payments would be calculated on a case-by-case basis, taking into account how much the Veteran was receiving before age 65 and other sources of income he or she may have beyond age 65.
• It is estimated that by 2020, approximately 5,800 Veterans and survivors would qualify for the Retirement Income Security Benefit upon turning 65. An estimated 261 Veterans and survivors would receive payments by 2020.
• Monday’s announcement responds directly to concerns raised by the Veterans Ombudsman and the House of Commons’ Standing Committee on Veterans Affairs.