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I am writing to try and get more awareness out there regarding the VAC Disability Award system that was brought in with the New Veterans Charter of 2006. This was touted by the Government as a better system than the old monthly pension system that has been around for over 50 years. Native Americans have long held that they were unjustly screwed over by the Government many years ago when they were bought off their land for cheap trinkets and a pittance of money. This new system is the same thing to Veterans who have served Canada. Under the old system, soldiers received a monthly, tax free benefit in accordance with their pension percentage. A quick look at the 2013 pension table shows that a 5% monthly pension is $129.67. With a spouse, add another $32.42. One child is another $16.86, a second child is another $12.32 and all subsequent children are another $9.73 each. So, a married Veteran with a wife and 3 kids and a 5% pension is getting $201.00, tax free per month (Until children reach 18 years of age or 21 if in post secondary). A Veteran getting a 5% pension under the new system gets a lump sum of $14,929.40. There is no extra allowance for a spouse and children under the new charter, it's a flat rate.
That being said, the Veteran with the 5% pension under the old system with a wife and 3 kids will make that 15k lump sum in 74 months or 6 years 2 months. It doesn't matter if it's a 5% pension or a 100% pension, the numbers still wash out the same. A 100% pension under the old system is $2,593.32 a month, $648.33 for a spouse, $337.13 first child, $246.37 second child, $194.50 each subsequent child. A 100% pension under the new system is $298,587.97. (Again, no extra money for dependants) Take the spouse and kids out of the equation, it will take a Veteran 115 months or 9 1/2 years under the old system to get the same amount as a Veteran under the new system. If he has a wife or kids, well, it'll be that much quicker, but still, 9.5 years is the longest.
The best part of this is, Veterans under the old system have a guaranteed, tax free monthly income for life that they can count on to help supplement their monthly income (Or if disabled enough that they can't work, to live on alone). New Veterans don't have this luxury. A soldier who gets medically released for say, a back condition and gets a 40% pension from VAC is going to get a $120,000 payout and that's it. Unless he gets reassessed down the road, he may get anther lump sum increase, but he has no guaranteed monthly income. Perhaps he is unable to return to work with his condition, or if he can, his hours may be limited. $120,000 is squat if he's 28 and has a whole life ahead of him and can not earn close to his former Military salary.
Herein lies the problem with the New Veterans charter. We have thousands of Veterans whose lives have diminished and their capacity to earn a living reduced, and they are being punished for it. The cherry on top of this crap sundae is with the SISIP decision made, Veterans with pensions under the old system and the 75% permanent impairment payments from SISIP are really laughing now as they may well be making more now than they ever did in the Military. A Corporal who was medically released and pensioned under the old system is on the 75% SISIP payments, getting almost $3,000 a month from SISIP, PLUS, whatever their monthly pension is from VAC. Yay them, but the disparity between that Veteran and a New Veteran Charter Veteran is now grossly widened. As the new Charter came out in 2006, the bulk of the New Veterans Charter pensioners are war wounded from Afghanistan, men and women who gave their all for Canada in combat, and are now being bought out for cheap. One's quality of life is substantially higher than the other. Why is this? To me, this is disgusting that our Government has thrown us under the bus in this fashion and why? To save money long term.
This does not have to stay this way. The Government can scrap that garbage Charter and go back to the old system fairly easily. All they need to do is calculate when a Veteran received his lump sum disability award, and then move forward on the calander 9.5 years and begin monthly payments from there for all the Veterans paid out disability awards. The only way it can change is for Veterans to make noise on this issue. Write letters to MP's, get the media involved so Canadians on a whole can be shown the differences between the old and new and get them on board. This has to change.
That being said, the Veteran with the 5% pension under the old system with a wife and 3 kids will make that 15k lump sum in 74 months or 6 years 2 months. It doesn't matter if it's a 5% pension or a 100% pension, the numbers still wash out the same. A 100% pension under the old system is $2,593.32 a month, $648.33 for a spouse, $337.13 first child, $246.37 second child, $194.50 each subsequent child. A 100% pension under the new system is $298,587.97. (Again, no extra money for dependants) Take the spouse and kids out of the equation, it will take a Veteran 115 months or 9 1/2 years under the old system to get the same amount as a Veteran under the new system. If he has a wife or kids, well, it'll be that much quicker, but still, 9.5 years is the longest.
The best part of this is, Veterans under the old system have a guaranteed, tax free monthly income for life that they can count on to help supplement their monthly income (Or if disabled enough that they can't work, to live on alone). New Veterans don't have this luxury. A soldier who gets medically released for say, a back condition and gets a 40% pension from VAC is going to get a $120,000 payout and that's it. Unless he gets reassessed down the road, he may get anther lump sum increase, but he has no guaranteed monthly income. Perhaps he is unable to return to work with his condition, or if he can, his hours may be limited. $120,000 is squat if he's 28 and has a whole life ahead of him and can not earn close to his former Military salary.
Herein lies the problem with the New Veterans charter. We have thousands of Veterans whose lives have diminished and their capacity to earn a living reduced, and they are being punished for it. The cherry on top of this crap sundae is with the SISIP decision made, Veterans with pensions under the old system and the 75% permanent impairment payments from SISIP are really laughing now as they may well be making more now than they ever did in the Military. A Corporal who was medically released and pensioned under the old system is on the 75% SISIP payments, getting almost $3,000 a month from SISIP, PLUS, whatever their monthly pension is from VAC. Yay them, but the disparity between that Veteran and a New Veteran Charter Veteran is now grossly widened. As the new Charter came out in 2006, the bulk of the New Veterans Charter pensioners are war wounded from Afghanistan, men and women who gave their all for Canada in combat, and are now being bought out for cheap. One's quality of life is substantially higher than the other. Why is this? To me, this is disgusting that our Government has thrown us under the bus in this fashion and why? To save money long term.
This does not have to stay this way. The Government can scrap that garbage Charter and go back to the old system fairly easily. All they need to do is calculate when a Veteran received his lump sum disability award, and then move forward on the calander 9.5 years and begin monthly payments from there for all the Veterans paid out disability awards. The only way it can change is for Veterans to make noise on this issue. Write letters to MP's, get the media involved so Canadians on a whole can be shown the differences between the old and new and get them on board. This has to change.