We have built the system to complete your calculations based on the conversion rules that were part of the new Pension for Life legislation. The calculations for Financial Benefits have been tested extensively and completed.
However, for the letters we had to produce a conversion for each individual scenario. There were more than 24 different conversion/calculations explanations needed for the up to 20,000 recipients. This has caused a delay in some Financial Benefit being completed.
The IRB allows recipients to earn up to $20,000 from employment per year before the benefit https://paydayloansohio.net/cities/bridgeport/ is adjusted. Employment income beyond $20,000 is fully offset dollar for dollar from the IRB amount.
This $20,000 employment exemption resets in January for the new calendar year. Because of this, you may notice an increase in your IRB payment starting in January; or, if you hadn’t been receiving an IRB payment before January, you may begin receiving one.
Once your employment income reaches $20,000, further employment earnings are then deducted as an income offset for the remainder of the calendar year.
Yes, survivors and surviving dependent children are eligible for two of the Pension for Life benefits, which are: the Pain and Suffering Compensation; and the Income Replacement Benefit.
No, the Department is committed to supporting members, Veterans and their survivors. Through the Pension for Life, Veterans Affairs Canada is increasing survivors’ eligibility for financial benefits through the Income Replacement Benefit and is increasing the amount that is payable to them from 50 to 70% (for details see next question).
Eligibility for survivors and surviving dependent children to benefits has increased through the Income Replacement Benefit, and the amount they will be paid has also increased.
For example, if a Veteran in receipt of the Income Replacement Benefit dies before age 65 of non-service related causes, the survivor and surviving dependent children will be eligible for a lump-sum payment equal to 24 months times the amount the Veteran received in the month before he or she died.
Currently, the survivor and/or surviving dependent children do not have access to benefits if the Veteran was in receipt of short-term Earnings Loss, and survivors are only eligible for the Supplementary Retirement Benefit if the Veteran was in receipt of long-term Earnings Loss.
If a Veteran dies after age 65 of non-service related causes, survivors and surviving dependent children will be eligible for 70% of the Veteran’s post-65 Income Replacement Benefit. Currently, survivors are only eligible for 50% of the Veteran’s post-65 Retirement Income Security Benefit and surviving dependent children are not eligible for the Retirement Income Security Benefit.
If a member or Veteran dies before age 65 of service-related causes, the survivor and/or dependent children will be eligible for the same Income Replacement Benefit that the Veteran would have been eligible for until age 65. After age 65, the survivor and/or dependent children will receive 70% of the benefit the Veteran would have been eligible to receive which is payable for life (this is an increase from the current 50%).