Financial Support
CF members who become disabled often worry about how they are going to pay their bills and support their families. The new Charter means that CF members who have a service-related, or career-ending, condition may qualify for:
Loss of Earnings Benefits
- This provides you or your family with financial support to help replace wages and other benefits you have lost due to an injury or illness.
- It will ensure that your income does not fall below 75% of your gross pre-release military salary.
- Loss of Earnings benefits are not affected by any lump sum Disability Award you may receive.
- Short-term Support: In some cases, you may only need short-term
support: for example, until you recover from your injury or illness, complete your rehabilitation, and find a new job.
- Extended Support: Longer-term financial support may be provided if you cannot rejoin the workforce.
Income Support
- If you are a CF Veteran, you may qualify for Income Support if you successfully complete a rehabilitation program and are capable of working but are not employed OR if you reach age 65 and have a low income.
- Income Support is not affected by any Disability Award you may receive.
Other Benefits
- CF Veterans who are the most seriously disabled may qualify for a monthly Permanent Impairment Allowance. To qualify for it, you must take part in Rehab services and have a severe permanent physical and/or mental impairment for which you received a Disability Award. This Allowance will be paid in addition to Loss of Earnings benefits.
- A Supplementary Retirement Benefit may be payable to you at age 65 if you qualify for Loss of Earnings benefits and you are totally and permanently incapacitated.
Disability Awards
When you have a disability, it can cause pain and suffering, change the way your body or mind functions, and make it hard for you to enjoy life. The Disability Award places a value on these 'non-economic' losses.
- The Disability Award is tax free. It can range from $654 to $250,000 depending on how serious the disability is.
- The amount of the Award is not linked in any way to other payments you may receive, including Earnings Loss benefits or Income Support.
- The Award will not be the sole 'gateway' to other benefits. This means you do not need to qualify for a Disability Award to get other benefits under the new Charter.
The Monthly Payment
Under the new Charter, no new monthly pensions will be awarded. But if you already get a monthly pension, the amount of that pension may increase if:
- you have medical proof your condition is worse; or
- you apply for a new pension for a new health condition that is closely linked to your pensioned condition but cannot be assesed on its own.
Example: Corporal Libby Mason gets a monthly pension for a shoulder injury. Medical evidence shows that the disability in her shoulder is worse. Libby will get a larger monthly pension.
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Lump Sum Payment
Under the new Charter, Disability Awards will be paid as lump sum cash awards.
You will qualify for a lump sum payment if:
- the illness or injury is related to your service and you do not already get a monthly pension for the condition; or
- you already have a pensioned illness or injury and you develop another health problem that is directly related to it. This is called a 'consequential' condition. It means we can assess each health problem on its own.
Example: Charlie Packard is a CF Veteran. He gets a monthly pension for a lower back problem. The medicine he takes for his back has given him a stomach ulcer. Charlie is granted an award for the ulcer. It is a 'consequential' condition, so Charlie will get a lump sum payment.
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Money Advice
Q. If I receive a lump sum award, can I get advice to help me manage it wisely?
A. Yes. If you and your family feel it would be helpful, you may seek independent financial advice. Some, or all, of the fees related to this counselling may be paid by our Department. In addition, after weighing your options, you may decide on your own to buy an annuity that can provide you and your family with a monthly payment. For clients who are not able to manage their own financial affairs, payments could be made to a legal representative, such as a public trustee, guardian, or power of attorney.
Death Benefit
- A $250,000 tax-free Death Benefit will be paid to your spouse or common-law partner, and dependent children if your death is related to your service and:
- you are killed while in service; or
- you are injured while in service and you die within 30 days of your injury.
Funeral and Burial Coverage
Access to funeral and burial coverage will be available to former CF members who:
- die while receiving either Earnings Loss benefits or Income Support benefits; and
- do not have enough money in their estate to pay for funeral and burial services.
A "means test" will be used to make this decision.
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