Help injured Veterans by re-establishing lifelong pensions and insuring that they all have access to financial advice and support.

What success looks like

Injured Veterans have the option of taking a monthly, tax free payment for life and are provided financial advice and support to assist them in determining the form of compensation that works best for them and their families.

Government's narrative on progress

The Pension for Life initiative is a combination of benefits that provide recognition, income support and better overall stability to Canadian Armed Forces (CAF) members and Veterans who are living with a disability due to a service-related injury and/or illness. As of April 1, 2019, Pension for Life provides a holistic package that reintroduces lifelong monthly pain and suffering payments; implements a new recognition benefit (The Additional Pain and Suffering Compensation); and consolidates six existing income-related financial benefits. The Pension for Life benefits package includes: The Pain and Suffering Compensation, Additional Pain and Suffering Compensation, and the Income Replacement Benefit. 1) For injured Veterans, the Pain and Suffering Compensation (PSC) recognizes pain and suffering caused by a disability resulting from a service-related injury and/or illness. The PSC replaces the lump sum Disability Award announced in 2006. It delivers a maximum of $1,150 per month for the life of the serving member or Veteran, or if a Veteran chooses, they can elect to have the monthly PSC cashed out for a lump sum payment that will be equal to the lump sum offered less any monthly payments already paid. The maximum lump sum cash out for the PSC will be equivalent to a maximum lump sum payment available under the Disability Award on March 31, 2019, which is being replaced by PSC. The amount provided by the PSC will be adjusted annually by the percent increase in the Consumer Price Index. 2) Some injured Veterans will also benefit from Additional Pain and Suffering Compensation (APSC). This benefit provides additional support to Veterans who are experiencing barriers to re-establishment in post-service life due to a service related severe and permanent impairment. Depending on the extent of the Veteran’s impairment, the monthly payment will be $500, $1,000 or $1,500 adjusted annually by the percent increase in the Consumer Price Index. This benefit is not intended to replace lost earnings and so it is tax-free. 3) In addition to the PSC and APSC recognition benefits, PFL will introduce the Income Replacement Benefit (IRB). The Income Replacement Benefit (IRB) is a monthly benefit designed to provide income support to Veterans who are experiencing barriers to re-establishment due to a health problem resulting primarily from service. As the IRB is designed to replace income, it is an economic benefit and as such is taxable. The benefit is available to Veterans and survivors, for life, and orphans, should they need it. For Veterans who have not yet served a full career in the military, the monthly salary will be increased by 1% every year until the Veteran reaches what would have been 20 years of service or age 60. The IRB replaces six pre-existing benefits (i.e. Earnings Loss, Benefit, Extended Earnings Loss Benefit, Career Impact Allowance, Career Impact Allowance Supplement, Supplementary Retirement Benefit and Retirement Income Security Benefit) with one, simpler benefit. Veterans who wish to join the workforce may also earn up to $20,000 from employment before any reduction will be made to their IRB payment. Additionally, financial support for eligible spouses will increase from 50% to 70% of the Veteran’s post age 65 Income Replacement Benefit, providing them with enhanced financial security when they need it most.

Note: this is the government's own description, not an independent assessment.