Minister O’Regan: on veterans, let’s compare apples to apples

OTTAWA—I am grateful for the opportunity to respond to the recent article by Brian Forbes (re: “O'Regan's entitled to his own opinion but not his own facts,” The Hill Times, March 12, p. 14). Forbes is to be admired for his longtime advocacy for veterans, and I am fully supportive of his suggestion that we should compare “apples to apples.” Unfortunately, analysis in his article doesn’t quite meet his own standard. Forbes expressed his desire to see the best of the Pension Act and the best of the New Veterans Charter brought together to provide a better compensation/wellness model for all disabled veterans in Canada. Through the announcement of Pension for Life, a range of programs supporting veteran and family well-being, and an investment of close to $10-billion over the last three budgets, I am proud to say that we are doing just that. In making his comparison, Forbes ignores the Income Replacement Benefit, which is a main component of the Pension for Life. In addition to the monthly, tax-free, payments for life received through the Pain and Suffering Compensation (PSC) and the Additional Pain and Suffering Compensation (APSC), veterans who are unable to return to work will receive 90 per cent of their pre-release salary, indexed annually, for as long as they need it (for life). Further, there is a one per cent career progression factor provided for those who were not able to continue their career in the military. It recognizes potential career loss progression. It provides an additional amount of compensation to veterans in receipt of the Income Replacement Benefit long term and who released prior to 20 years of service (or age 60). It does not represent the actual career progression an individual veteran may have had in the military. Forbes dismisses this as being nominal. Prior to our changes, a 25-year-old with five years of service, making $60,000, who is seriously injured would have received $1.6-million of income support over the course of their life. Under our program, that same veteran will receive $2.9-million over the course of their life. Hardly nominal. It’s almost double. To put that in perspective, after 10 years of being on this program, that veteran would be receiving an annual salary of $72,500, compared to $54,800 under the previous program. Of course, that doesn’t include the tax-free monthly payments they will receive. When we look at what that means in terms of total support, it exceeds what the same person would receive under the Pension Act, if they were single. If that person were married and had two kids, they would receive more, as there are increased benefits for a spouse and each dependant. Lifetime Values Pension for Life (PFL) 2019 Pre-Budget 2016 New Veterans Charter Pre-2006 Pension Act Single Married + 2 children Total Gross $4.273M $3.891M $3.830M $4.398M Total After Tax $3.830M $3.273M $3.624M $4.192M Gross Lifetime Values per Benefit: Income Replacement Benefit1 (IRB)* $2.912M Earnings Loss Benefit1 (ELB)* $1.674M Canadian Armed Forces - Long Term Disability1 (CAF LTD)* $1.674M $1.674M Pain and Suffering Compensation1 (PSC) $689,600 Retirement Income Security Benefit1 (RISB)* $346,900 Disability Pension1 (DP) $1.705M $2.273M Additional PSC1 (APSC) - grade 2 $599,600 Career Impact Allowance1 (CIA) - grade 2* $748,600 Exceptional Incapacity Allowance1 (EIA) - grade 4 $451,400 $451,400 Critical Injury Benefit2 (CIB) $71,800 CIA Supplement1 (CIAS)* $688,200 Supplementary Retirement Benefit2 (SRB)* $46,600 Disability Award2 (DA) $314,700 CIB2 $71,800 1Paid Monthly 2Paid as a lump sum *Taxable Benefit While I am proud of being able to bring back the monthly pension option that the veterans community asked for, I am equally pleased to highlight how we are providing a full range of programs to support veterans and their families. We know how important education is to building a post-service future for veterans, and in just a few weeks we will launch the new education and training benefit for veterans released since April 2006. This is above and beyond the continued vocational rehabilitation programs referenced by Forbes that support our ill and injured veterans. We have also enhanced our career transition services to ease the transition process, supporting veterans, spouses, and survivors with career counselling, job placement, and preparation services. Other new programs and supports coming in April include access to all Military Family Resource Centres, support to veterans in emergency situations, and a Centre of Excellence on PTSD and Mental Health. And I would be remiss if I didn’t respond directly to the critique that we should create a new family benefit. We did. It becomes effective April 1, and provides $1,000 per month, tax-free, and is paid directly to the caregiver, just as the ministerial advisory group on families asked us to do. Today’s veterans and their families deal with very different challenges—related to various domains of well-being, not only financial—in everyday life. Veterans Affairs is committed to providing veterans and their families with access to the right combination of financial security, education and training, and well-being and family supports to enable them to achieve their goals in post-service life. I will continue to meet with veterans across the country and work hard to make sure people fully understand the new benefits and how they will help veterans and their families. Seamus O’Regan is the Liberal MP for St. John's South-Mount Pearl, N.L., and Canada’s minister of veterans affairs. The Hill Times

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Minister O’Regan: on veterans, let’s compare apples to apples

A recent opinion piece in The Hill Times doesn’t quite meet that standard.

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