Liberals’ pension plan for disabled veterans won’t take won’t come into effect until 2019

The Trudeau government is promising to provide injured veterans with more financial compensation and assistance in the form of long-promised lifelong disability pensions for those injured in uniform.

Veterans Affairs Minister Seamus O’Regan unveiled the new pensions Wednesday, more than two years after the Liberals promised them during the last federal election — and only days before Christmas.

The plan promises more money to injured veterans than the current suite of benefits, especially the most severely disabled who can’t work and continue to suffer from service-related injuries.

Yet it offers only modest increases to those on the other end of the spectrum, and continues to provide many with less than the previous lifelong disability pensions, which were abolished in 2006.

“We were focused in this program on those who are catastrophically injured,” O’Regan explained during a news conference at National Defence Headquarters.

“Our pension-for-life plan is a combination of benefits that provide recognition, income support and stability to veterans and Canadian Armed Forces members who experience a service-related illness or injury,” O’Regan said in a statement.

“We are addressing concerns made by the veteran and military communities by allowing those with a service-related injury or illness to determine the best form of compensation that works for them and their families.”

“Those who have received a disability or an illness during their service. Those who have a hard time going back to work. Those who have a hard time, as they say, re-establishing themselves.”

The plan is expected to cost $3.6 billion over six years, and will take effect in April 2019.

Veterans and support groups were scrambling after the announcement to figure out exactly how the changes would affect them and their clients, citing a lack of detail as a major complaint.

“It’s confusing,” said Jim Lowther, president of VETS Canada, which support homeless veterans in different cities across the country. “We’ve been going over this all morning, but it’s very vague.”

Veterans receive financial benefits and compensation based on the extent of their injuries or disabilities and whether those factors have an impact on their post-military career and earnings.

The existing system, created in 2006, provides a lump-sum worth up to $360,000 for the most severely disabled, in addition to rehabilitation, career training and income support.

While veterans who want the money right away will still be able to choose the lump-sum payment, the Liberals are also giving them the choice of a monthly payment instead worth up to $1,150.

Those with severe or permanent disabilities will also be eligible for an additional new benefit worth between $500 and $1,500 per month. Both benefits are tax free.

Officials said the more than 61,000 veterans who have already received a lump-sum award will be assessed to determine how much they would have received per month. They will also be eligible for the new benefit, which officials said will be retroactive and could result in substantial one-time payments.

The government will also lump together six different benefits for veterans who can’t find work or whose post-military careers pay less than when they were serving in uniform.

The changes are complex and multi-layered, and represent the most-significant overhaul in more than a decade to benefits and services available for disabled veterans.

Different scenarios drawn up by Veterans Affairs Canada indicate the most severely disabled veterans will receive substantially more money through the new system than they would have under the charter and even the old pensions.

Those with moderate injuries that have not affected their ability to rejoin civilian life or find work will also see increases compared with money available through the charter. But the amounts will be hundreds of dollars smaller per month than under the previous pensions.

“Those most catastrophically injured will receive greater financial compensation on our new plan, compared to those on the Pension Act,” said the senior government official.

“While those who have lower assessments will not achieve parity to the Pension Act in financial compensation, they will have access to all of our supports to help them transition to post-service life — unlike those under the Pension Act.”

Veterans had warned in the lead-up to Wednesday’s announcement that they were prepared to rally against the government if its pension plan did not provide an equivalent amount of compensation as the old system.

Image Source: THE CANADIAN PRESS/Darren Calabrese

by Israt Yasmin, The Blogging Connection

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