Manulife
Video / August 1, 2024
Transcript
The following is an overview of the Canadian Armed Forces Long Term Disability Benefit, the CAF LTD and support services. As you prepare for your release, SISIP Financial Advisors can help you assess your financial well-being. They can do general assessments and advice, insurance needs assessments, financial planning investment and financial counseling. They also offer insurance services. Their insurance services include term life insurance, accidental death dismemberment and the long term disability for Regular Force and Primary Reserve members, which will be the primary focus for our presentation today.
Today we're going to be discussing timelines, objectives, planning, support services, eligibility, application process and the income after release.
Now what is CAF Long Term Disability? Long term disability is through the Canadian Armed Forces. It's an employer paid insurance plan. That means the CAF is paid into a group insurance plan that can potentially replace your income for up to two years and if you qualify for total disability up until age 65.
Now how do we apply for the CAF LTD? We need to apply within 120 days of our release. The application, we encourage it at disclosure which is up to a year prior to your date of release. You can apply with an expected date of release. We do require the confirmation of the date of release prior to the preapproval of your CAF LTD and that allows you to have access to the Canadian Armed Forces Long Term Disability Vocational Rehab program and the financial supports. CAF LTD benefits are only payable after the date of release.
Now let's look at eligibility. The Long-Term Disability Benefit eligibility requirements may vary based on whether a member is Regular Force or a Reservist. Coverage for the Long-Term disability benefits for Regular Force members is in place 24/7 and injury does not have to be service attributable or related to duty. It is important to note that the Long Term disability benefit for Regular Force members is based on the salary at time of release.
Now when it comes to reserve force members, if you are a Class A or Class B with a contract under 180 days, the injury or illness needs to be while on duty. Class B Reservist with a contract more than 180 days or a Class C coverage in place is very similar to those of a Regular Force member where the coverage is in place 24/7 and the injury or illness does not have to be related to duty.
Now it is important to note for reservists for all reservists that the long-term disability benefits are based on salary and class at time of injury or illness and not at the time of the release. Non-medical releases are also eligible to apply for the Canadian Armed Forces Long Term Disability.
Now this means not just 3A or 3B categories are eligible for long term disability. You could apply with a 4A or a 5F for example. However, the eligibility is a little bit different. Eligibility is based on the definition of total disability. Now what this means is the member is totally disabled if their medical condition prevents them from working in any job that they're qualified to do.
It is very important to remember if a medical release is currently in progress, members are cautioned against choosing an early voluntary release. Electing an early voluntary release may negatively impact the supports available to a member. The CAF LTD benefit is adjudicated based on the release item on file at the date of release. Even in cases where the release item is amended post release, the CAF LTD benefit approval is still based on the release item on file on the date of release.
If this situation applies to you as the listener, you currently have a medical release in progress and you're considering an early voluntary release, please discuss this with your CAF Nurse Case Manager, your local transition center, or contact a member of our CAF LTD VRP team to further discuss the implications this may have on your access to financial and program supports post release.
Now let's look at the period of benefits. Benefits are available up to 24 months post release. Supports will continue beyond the 24-month mark if a member meets the definition of total disability. Total disability is determined based on the education and training, experience, medical condition at that 24-month mark post release. Should you meet the definition of total disability benefits are available up to age 65. For all of those that are on a non-medical release, so your 4As, your 5F, the benefit eligibility is already based on total disability. Therefore, total disability is determined when the application is evaluated and should the member meet the requirements, disability is available up until age 65 as long as they continue to satisfy the definition of total disability.
Let's review the CAF LTD benefit income amount. For Regular Force members the minimum income is equal to 75% of a corporal salary. The CAF LTD benefit is calculated at 75% of gross pay at release, with offsets for CFSA pension, CPP/QPP taxes and employment income.
For Reserve Force members on Class B contract, minimum income is equal to 75% of corporal salary. The CAF LTD benefit is calculated at 75% of monthly gross pay at the time of injury or illness, with offsets similar to those for Regular Force members. For Reserve Force members on Class B long term contract more than 180 days, the minimum income is equal to 75% of a corporal salary.
The CAF LTD benefit is calculated at 75% of their daily rate at the time of injury or illness, with all the applicable taxes. For Reserve Force members Class A or Class B contract 180 days or less, the benefit is calculated based on a deemed salary of $2700 per month, with optional higher amounts available with financial proof.
When calculating post release income, it's important to keep in mind that gross CAF pay is calculated before all applicable offsets. Remember, the CAF LTD benefits are a taxable income. A member's income may come from various sources post release. What we've identified here is that your income could come from CAF LTD, which is your 75% gross salary. You could be getting your CFSA pension. There's also QPP and CPP to keep in mind. You could also be earning employment income or other income as well as Veterans Affairs Canada's Income Replacement benefit.
Now there are the offsets that we mentioned in the previous slide. So in the previous slide, we discussed that there were offsets on that 75%. The CAF LTD provides that 75% with offsets for CFSA, pension, other pensions, CPP/QPP. Those could be a direct offset to your CAF LTD depending on your situation. Other income such as employment income may also be an offset to your CAF LTD.
These are the steps to assure your future. We encourage applications at disclosure so this is up to one year prior to your date of release. Once you apply, we also encourage applications to your provincial healthcare plan, your public service healthcare plan, and Veterans Affairs Canada. That will allow us to provide enough time up to six months prior to your date of release to have access to the vocational rehabilitation program and the financial supports that come along with it. After the date of release is when your income replacement benefit begins.
To recap what we've discussed so far, we've looked at what the CAF LTD benefit is. We've looked at who can apply, the eligibility, what is needed to apply, and the income benefit.
Now, once you are approved for the CAF LTD, this provides you with access to all of its support services. Once you apply for the Canadian Armed Forces Long Term Disability Program, you're met with one of our administration staff followed by a case manager who will be assigned to your file for adjudication. Once the CAF LTD is preapproved, you have access to our vocational rehabilitation program up to six months prior to your release.
You will also have access to job search assistance and even a functional rehabilitation for non-service attributable conditions. Our support service specialists and case managers will work together in order to take a holistic approach to ensure your successful transition in the civilian workforce.
Now let's have a look at the Canadian Armed Force's long term Disability Vocational Rehabilitation Program. The objective of our VRP program, so vocational rehabilitation, is to prepare member for return to employment. This is available to all members who have been approved for the CAF LTD. The CAF VRP can help by providing transition counselling and vocational retraining when required.
How much CAF LTD VRP support time is there? As discussed earlier, we encourage application at disclosure up to 12 months prior to your date of release, provided all documentation has been submitted and received. The CAF LTD file has been reviewed and approved, and the file has been referred to the CAF LTD VRP. Members may access the CAF LTD VRP financial support up to six months prior to their date of release. The CAF LTD VRP support is available to all members who continue to meet the requirements for CAF LTD benefit eligibility. This means if your CAF LTD benefits go beyond the 24 months, so does the access to the vocational rehabilitation program. As members go through the release process it is important for them to remember they are still members of the CAF until their effective date of release and as such are subject to the chain of command.
What are the requirements for vocational support? In order for funding to be approved through the CAF LTD VRP, there has to be a need for training. The proposed plan must make medical sense and not have any negative impact to the members overall health and well-being. When possible, the training should build on existing skills, so training under the CAF LTD VRP is provided only for one program or direction. There may be exceptions to this, particularly in cases where two programs are linked closely together and where both are required as a condition of employment. An example of this is a member who is considering becoming a heavy equipment operator. They also may need a Class 1 license, so you need to get the heavy equipment operator certificate and a Class 1 license as part of the employment requirement. Training must have realistic employment opportunities.
It's important for members to consider where they will be residing after release and whether the labor market in that area has realistic employment opportunities for training which they plan to pursue. This is where the CAF LTD VRP counselor can help provide valuable feedback with respect to employment opportunities, employment statistics based on training programs completion and emerging trends in both the public and private sector of employment.
In order for funding to be approved for a training program, the training must provide a license, certificate, diploma, degree from a recognized training institution or facility. This means we won't pay your best friend or your neighbor to teach you how to do some woodworking.
And last but not least, the training must give good value to the member and their future. This visual demonstrates why it's important for members to speak with a CAF LTD VRP Counselor with respect to any plans they may be exploring for their upcoming release. The CAF LTD VRP Counselor has the experience required to assist members in making informed decisions. They know the school programs and eligibility requirements and often can provide valuable insight with respect to the labor market in the region where the member plans to reside after the release. Relying on the experience of a CAF LTD VRP counselor can be a great benefit to the member. While the member may see a straight line, a smooth path to their goal, in a reality there may be avoidable roadblocks, twists and turns with a CAF LTD VRP Counselor can help the member navigate or avoid altogether. It's important to talk it through.
Support funding through the CAF LTD VRP is provided on a case-by-case basis. We do provide 100% of funding and coverage for mandatory costs on the administration cost for school that might be applicable, 100% of coverage in terms of tuition, books. There also are some allowances that are available for those that are in approved programs. That includes travel to and from school. There's an Internet allowance and supplies. If the school program is only offered in an alternate province or an alternate country, there is the ability to look at dual residency allowances as well, up to a maximum, of course. There's also a childcare allowance, up to 50% of receipts to a monthly maximum. There's also educational supports, so while a member is in school, if they require tutoring, we can look at that as well. There's interest free loans if there is very specific equipment that somebody may require or somebody desires. Safety equipment is covered at 100%. And there are also other supports such as equipment and tools that are required for their programs on a case-by-case basis.
So that means if you're taking a coding course and you require a special laptop or a mechanics course that requires tools, these are things that could be considered on a case-by-case basis. And we encourage you to speak with your vocational counselor.
Let's explore timelines for the CAF LTD. As noted here, it's important to apply at disclosure. Early applications ensure a successful transition. On average, transitions can take up to more than two years before the date of release. During the initial time frame, members have access to CAF LTD VRP counsellors who can help with those "What If" scenarios. Members may contact the CAF LTD VRP who will be happy to provide general information on supports available through the CAF LTD and CAF LTD VRP. Counselors are also available to discuss training, training plans or programs that members may be exploring to review, and questions that the member may have regarding our services and supports.
CAF LTD VRP counselors are unable to confirm funding approval for training programs until the file has officially been referred to VRP. However, they are more than happy to have early conversations with members to help guide them through vocational decisions and exploration in preparation for their release. Once CAF LTD file has been approved and referred to the CAF LTD VRP members may access funding for approved programs up to six months prior to their effective date of release.
This means if the training program is approved and the member has an approved VRPSM through their chain of command, they may attend school or an unpaid OJT full time during the six months prior to their date of release while still receiving 100% of their CAF pay.
CAF LTD benefit eligibility begins at the effective date of release and continues up to 24 months post the effective date of release and should the member meet the definition of total disability, could be potentially extended to age 65.
Within the CAF LTD and our support services we also provide job search assistance. Our job search assistance team can also provide you with assistance in terms of being able to create a resume, help you with training and interviewing techniques, targeted employment leads and as well as helping with the priority hiring portal. For any members releasing after April 1st 2024. CAF LTD has started providing medical, psychosocial supports and functional rehabilitation for those with non-service attributable injuries or illnesses. The objective of this program is to medically prepare a member to return to work in the civilian workforce.
In order to achieve this mandate, the CAF LTD has begun providing functional assessments, arranging and funding required medical and psychosocial treatment, and monitoring, treatment and functional recovery. These services are available to all CAF LTD approved members for their non-service attributable conditions. Some members may find themselves with multiple health conditions which might be deemed to be service attributable and non-service attributable.
For these situations, you might receive supports through both CAF LTD and VAC's Rehabilitation Program. With your consent, the two organizations will be able to ensure your needs are being addressed for the eligible conditions that are identified. We encourage members to reach out to both organizations to discuss the benefits and services they may be eligible for.
In summary, the CAF LTD will continue to be the first payor for income replacement benefits up to 75% of your gross salary for releasing members. CAF LTD VRP will continue to be the first provider for vocational supports for all CAF LTD approved members. The CAF LTD Functional Rehabilitation Program will be the only provider of medical psychosocial support for medical conditions which are deemed to be non service attributable.
To finish up, we'd like to leave you with these final thoughts. There is life after the Canadian Armed Forces. While we recognize the unknown can be scary, rest assured there is a team of experienced CAF LTD VRP counselors, knowledgeable agencies and service providers who are ready and available to help you as you transition through this next important and exciting phase. You are soon going to become your own career Manager. Let's work together to help you make informed decisions which will set you up for long term success. Don't be afraid to reach out to our subject matter experts who are ready and available to help you as you begin to explore your options. Lastly, reach out to your CAF LTD team and your SISIP Financial advisor for assistance.
We are here to provide guidance and we are eager to work with you as you prepare for your release. Should you have any questions regarding the CAF LTD, please contact us at the 1-800-565-0701. We're located across Canada and can provide you support in both official languages. You may also visit our website at www.sisip.com.
Thank you for your time and interest in the CAF LTD support services. We wish you all the best as you embark on your transition and we look forward to working with you.