Response from CDS: Follow-up Request to Impact on SISIP LTD Change of Release Item

16 November 2020

Mr. Gregory Lick
Ombudsman
Office of the National Defence and
Canadian Armed Forces Ombudsman
100 Metcalfe Street, 12th floor
Ottawa, Ontario K1P 5M1

Dear Mr. Lick,

I am writing in response to your letter dated 2 October 2020 where you sought an update on the issue of certain retired Canadian Armed Forces (CAF) members who had their release item amended, post release, for medical reasons. Key concerns remain given these members are ineligible to apply for CAF Long Term Disability (LTD) benefits.

CAF, through the Directorate of Medical Policy and Director Military Careers Administration (DMCA), continue to strive to meet members’ needs by assigning the appropriate item of release prior to the date of release (DOR). DMCA has the ability to assess the Medical Employment Limitations (MELs) of a CAF member up to their last day of service. DMCA may substitute a medical release caveat for an originally requested voluntary release item if the determination is made that the member’s MELs are in breach of the Universality of Service (U of S) principle.

In general, requests to change a release item after a release date are examined on a case-by-case basis by DMCA. Once a retired member makes the request to have their item of release reviewed, DMCA will change the release item retroactively only if the release was deemed unlawful (i.e. a release item is assigned by someone who has no delegated release authority). Specific to the issue at hand, if it is found during the review process that a member who chose to voluntary release had MELs in breach of U of S, the item of release is not amended since the voluntary release request remains the prime reason for release and is deemed lawful. However, in these cases DMCA will annotate the member’s release item with the term “disabled” (i.e. 4(a) Voluntary Release “disabled”). The “disabled” annotation is in accordance with the Canadian Forces Superannuation Act, conferring certain benefits to which the member would otherwise not be entitled. This annotation does not impact or allow for released members to subsequently make a CAF LTD claim.

Between June 2016 to October 2017 DMCA changed the release items of approximately 350 CAF members. Since that time, no additional released members have had their item of release amended to a medical item after their DOR. The application of the CAF LTD policy by SISIP Financial and Manulife has been consistent over the years: any change in a voluntary release item after DOR to a medical release item is not recognized by the CAF LTD policy and the

member is not eligible for benefits unless they can demonstrate that they are totally disabled and therefore cannot work in any job. Therefore, a change of release item within 120 days does not qualify the member for the 24-month CAF LTD benefits unless they are totally disabled. SISIP Financial, who administers CAF LTD claims with the Insurer Manulife, has retained files of retired members whose item of release was amended post DOR should a change of policy occur in the future.

Going forward, Commander Military Personnel Command (CMP) will consult with Directorate of Law/Military Personnel and the Canadian Forces Legal Advisor to determine if any amendments should be considered regarding the CAF LTD policy. This will include assessing the legal risk associated with adjudicating the claims identified in this matter if the policy were not to be amended. CMP will notify your office when the legal review is underway. If you require further clarification, please contact Commander Military Personnel Command, Vice-Admiral Haydn C. Edmundson.

Sincerely,

J.H. Vance
General

c.c. Vice-Admiral Haydn C. Edmundson - Commander Military Personnel

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