Veterans Affairs Canada - Estimates and Budget

2019-20 Veterans Affairs Canada Supplementary Estimates (A)

Details 2019-20 VAC Supplementary Estimates (A)

• Veterans Affairs Canada will receive $857.6 million in funding, representing a 19% increase over the current budget. Veterans Affairs Canada's budget will increase from $4,433.3 million ($4.43 billion) to $5,290.9 million ($5.29 billion) for the following:
• $676.9 million for demand-driven programs and services which provide support to eligible Veterans and their families.
  • Whether ten Veterans, or 10,000 come forward, the funding will be available to ensure that they receive the benefits they need.
  • For these demand-driven programs and services, the Department annually estimates how many Veterans will come forward and how much funding will be required to meet that forecasted demand.
  • If, during the year, more Veterans require benefits and services than forecasted under a specific Veteran program, Veterans Affairs Canada has the ability to increase budgets accordingly through an annual Quasi Statutory Treasury Board Submission.
  • Conversely, if fewer Veterans than forecasted access certain benefits and services, then any unused funding is returned to the fiscal framework.
  • Veterans Affairs Canada requires additional funding for a number of programs for the 2019/20 fiscal year. The majority of this funding is required to support the new Pension for Life programs which were implemented as of April 1, 2019.
• $101.1 million for Toth class action settlement agreement
  • A class action lawsuit referred to as "Toth" was certified by the Federal Court in March 2016.
  • The claim challenged the validity of the deduction (offsets) of disability benefits payable from Veterans Affairs Canada's income support programs (Earnings Loss and Canadian Forces Income Support benefits).
  • The action sought compensation for these offsets.
  • On January 30, 2019, the Federal Court approved the Final Settlement Agreement, and class counsel's legal fees.
  • The funding received in Supplementary Estimates is broken down as:
    • $100 million for settlement payments, and $1.1 million for the administration of the settlement agreement to the class (including Employee Benefit Plans).
    • $65.1 million to correct the indexation of the Disability Pension
  • Under the Pension Act, Veterans Affairs Canada's Disability Pension program provides a monthly tax-free payment to eligible Veterans, or their Survivors, and also administers Disability Pensions on behalf of the Royal Canadian Mounted Police.
  • Section 75 of the Pension Act prescribes two methods of calculating the annual escalation adjustment: using either the Consumer Price Index or an Annual Wage Calculation, with the method applied being the one that provides a greater benefit to the client.
  • In the early 2000's, the Government of Canada introduced a change to the personal tax exemptions under the Income Tax Act. Unfortunately, this change was not incorporated in Veterans Affairs Canada's annual adjustment calculations until 2011.
  • As a result, between 2003 and 2010, the annual adjustment amounts were understated for approximately 270,000 Veterans, Survivors and Royal Canadian Mounted Police members.
  • The total value of this error was $165M with $65.1M being the portion to be paid out in 2019/20.
• $14.5 million for the continued implementation of Pension for Life o The Pension for Life program, introduced on April 1, 2019, is a combination of benefits that provide recognition, income support and stability to members and Veterans who experience a service-related illness or injury.
  • Pension for Life is an ambitious project for Veterans Affairs Canada with the objective of consolidating and streamlining veteran's disability, income replacement and rehabilitations services and benefits.
  • In 2018/19, the first year of the project was dedicated to providing the initial operating capacity to meet mandate commitments as well as the legislative changes in effect as of April 1, 2019.
  • In 2019/20, the second year of the project continues the development of the products and services to meet the final operating capacity and satisfy all stakeholders and enhance the working experience for departmental staff.
  • This amount represents unspent project funds from 2018/19 which are required in 2019/20.

Version 1; 2019-10-07
Source: VAC QP Note on Budget Estimates, 2019-10-07

Back to top

Main Estimates - Departmental Budget 2019-2020

Details

• Veterans Affairs Canada's planned spending each year is established through the Main Estimates and Supplementary Estimates.

Main Estimates 2019-2020:

• Main Estimates provides a detailed listing of the resources required by Veterans Affairs Canada for the upcoming fiscal year in order to deliver its programs. The 2019-20 Main Estimates provide Veterans Affairs Canada funding of $4.42 billion, which represents a net increase of 25.4million (or .6%) in comparison to last year's Main Estimates (2018-19).

Summary of Key Changes:

• $89 million increase in Vote 1 (Operating) related to adjustments in:
  • Regular Operating – funding for Service Excellence and implementation funding for Pension for Life, and
  • Funding related to the increased demand for health and rehabilitation services.
• $146 million decrease in Vote 5 (Grants and Contributions) primarily related to adjustments in:
  • Disability Pensions ($71M Decrease) – Decline in the number of War Service Veterans and Survivors
  • Due to the transition of Pension for Life suite of programs, the following programs are being adjusted:
    
    Decreases due to sunsetting Veterans Well-being Programs:
    
    
    • Disability Awards - $934M decrease (Phasing out the Disability Award program as a result of the new Pain and Suffering Compensation)
    • Earnings Loss and Supplementary Retirement Benefit - $646M decrease (Phasing out the Earnings Loss program as a result of the new Income Replacement Benefit)
      Increases due to PFL Implementation:
      
      
      • Pain and Suffering Compensation - $685M Increase
      • Income Replacement Benefit - $628M Increase
      • Additional Pain and Suffering Compensation - $102M Increase
        (Replaces Career Impact Allowance)
      • Supplementary Retirement Benefit Grant Payout - $54M Increase (One-time payout)
  • Education and Training Benefit ($39M Increase) – New benefit introduced on April 1, 2018
• This year's Main Estimates include items pertaining to Budget 2019 initiatives such as:
  • $1 million related to Commemorating Canada's Veterans through the Highway of Heroes project. The project will see 2 million trees being planted between Trenton and Toronto: one tree for every Canadian that has served since Confederation.
  • $0.5 million related to the Juno Beach Centre - a Second World War museum in Normandy, France, which pays homage to the Canadians who lost their lives during the Second World War.
  • $30 million related to Recognizing Métis Veterans. These funds will be used to recognize the contribution of Métis veterans to the country's Second World War efforts and commemorate the sacrifices and achievements of all Métis veterans.
  • $0.9 million related to Supporting Research on Military and Veteran Health. Budget 2019 proposes to create a Centre of Excellence on Chronic Pain Research. Working closely with veterans, partners and experts in the field, the Centre will help ensure that veterans' chronic pain realities are reflected in research on chronic pain treatment, and help pilot innovative therapies and enhance treatment options.
  • $14 million related to Supporting Veterans as They Transition to Post-Service Life. Budge  2019 proposes a number of initiatives to make the transition process more simple and seamless for veterans as they transition out of service life.
  • $30 million related to Supporting Veterans' Families. To better support veterans who married over the age of 60 and their spouses, Budget 2019 announced a new Veterans Survivors Fund.

Version 1; 2019-10-07
Source: VAC QP Note on Budget Estimates, 2019-10-07

Back to top

Budget 2019

Details

• Budget 2019 proposes measures for:
  • Supporting Veterans as They Transition to Post-Service Life
  • Supporting Research on Military and Veteran Health
  • Supporting Veterans' Families
  • Commemorating Canada's Veterans

In 2019 Budget For Veterans

Supporting veterans as they transition to post-service life

• Budget 2019 proposes a number of initiatives to make the transition process simpler and seamless for veterans, including, for example:
  • Expanding access to support provided by the Canadian Armed Forces Transition Group to ensure that members of the Canadian Armed Forces— not just those who are ill and injured—benefit from personalized support services.
  • Enhancing training available on transitioning to civilian life, to improve members of the Canadian Armed Forces' knowledge of programs, benefits and available services.
  • Launching a new online questionnaire to help Veterans Affairs Canada identify members of the Canadian Armed Forces at risk of a difficult transition and proactively inform them about the services and benefits that may help them most.
  • Improving service to departing members by making benefit application and information sharing between Veterans Affairs Canada and the Department of National Defence simpler and more streamlined.
  • Launching a personalized transition guide, available through a service member's My VAC Account, to help them better navigate the process from beginning to end.
• In addition, in Budget 2019 the Government proposes to amend legislation to expand eligibility for the Education and Training Benefit, so that members of the Supplementary Reserve can access the Benefit. Launched on April 1, 2018, the Education and Training Benefit provides veterans with up to $80,000 for education. Supplementary Reservists—who were previously ineligible for this benefit—will now have access to this additional support to help them transition to post-military careers and life.
• With these examples and measures to improve administrative processes, Veterans and members of the Canadian Armed Forces will be better supported as they transition out of service life. To support these measures, Budget 2019 proposes to provide Veterans Affairs Canada with $41.0 million and $5.4 million ongoing and the Department of National Defence with $94.3 million over six years, beginning in 2018-19, with $19.0 million per year ongoing.

Supporting Research on Military and Veteran Health

• The rate of chronic pain among veterans, in particular, is almost double that of the general Canadian population. Budget 2019 proposes to create a Centre of Excellence on Chronic Pain Research. Working closely with veterans, partners and experts in the field, the Centre will help ensure that veterans' chronic pain realities are reflected in research on chronic pain treatment, and help pilot innovative therapies and enhance treatment options. To support the centre, Budget 2019 proposes to provide Veterans Affairs Canada $20.1 million over five years, starting in 2019-20, with $5 million per year ongoing.
• This work will be complemented by that of the Canadian Institute for Military and Veteran Health Research (CIMVHR), which brings together a network of 43 Canadian university members, 10 global affiliates, four philanthropic organizations, three industry partners, several government departments and more than 1,700 researchers—all committed to improving the way that Canada cares for members of the military, veterans and their families. Organizations like the Royal Canadian Legion that need to develop effective, evidence-based services for veterans and their families rely on the research done by CIMVHR.
• To ensure that the Canadian Institute for Military and Veteran Health Research can continue to respond to the unique health needs of military members, veterans and their families, Budget 2019 proposes to provide Veterans Affairs Canada with $25 million over 10 years, starting in 2020-21, to fund CIMVHR's ongoing operations.

Supporting Veterans' Families

• To better support veterans who married over the age of 60 and their spouses, Budget 2019 announces a new Veterans Survivors Fund committing $150 million over 5 years starting in 2019-20 to Veterans Affairs Canada. With these funds, the Government will work with the community to identify impacted survivors, process their claims and ensure survivors have the financial support they need. The Government will announce additional details on this measure in the coming months.

Commemorating Canada's Veterans

• In honour and remembrance of those who have served during times of conflict, the Highway of Heroes project will see 2 million trees being planted between Trenton and Toronto: one tree for every Canadian that has served since Confederation. So far, over 90,000 trees have been planted.
• To support the Highway of Heroes project, Budget 2019 proposes to provide funding of $2.9 million over three years, starting in 2019-20, to the Highway of Heroes Fund, through Veterans Affairs Canada.
• The Juno Beach Centre is a Second World War museum in Normandy, France, that pays homage to the Canadians who lost their lives during the Second World War. The Centre's mandate is to preserve the legacy of all Canadians who served during the Second World War for future generations. The Centre has been receiving operating funding from Veterans Affairs Canada since 2007.
• To help the Centre continue to deliver its mandate, Budget 2019 provides $2.5 million over five years, starting in 2019-20 to Veterans Affairs Canada.
• Many young Métis men and women served in the Canadian Forces during the Second World War. To recognize the contribution of Métis veterans to the country's Second World War efforts and to commemorate the sacrifices and achievements of all Métis veterans, Budget 2019 provides $30 million to Veterans Affairs Canada in 2019-20.

Version 2; 2019-12-08
Source: VAC QP Note on Budget 2019, 2019-12-08

Back to top