Part 6 – Division 1
Overview: Payments - Veterans Affairs

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On May 29, 2012, Veterans Affairs Canada announced that it would change the way it calculates VAC’s Earnings Loss Benefit, Canadian Forces Income Support and War Veterans Allowance by stopping the practice of offsetting disability pension benefits.

The offsetting practice subsequently ceased on October 1, 2012 for Earnings Loss Benefit and Canadian Forces Income Support recipients and on October 1, 2013 for War Veterans Allowance recipients.

The Government approved a compensatory payment for applicants and recipients of VAC’s Earnings Loss Benefit, Canadian Forces Income Support and War Veterans Allowance who were impacted by disability pension offsetting between May 29, 2012 announcement and the day before the offsetting practice ceased for each benefit.

This compensatory payment will harmonize the treatment of Veterans across VAC programs in voluntarily providing an additional “one-time” benefit to bridge the gap between the original announcement and its implementation.  This approach will also highlight that the Government recognizes that there were lengthy measures involved in implementing the changes, and, as a gesture of goodwill (given VAC has not been court-ordered to do so), is prepared to compensate for the delay.

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