Disability Award Increase for Veterans
March 17, 2017
OTTAWA: MP Jim Eglinski, Member of Parliament for Yellowhead, is pleased to hear that veterans with a Disability Award from Veterans Affairs Canada (VAC) will receive an additional, tax-free, lump sum payment. The maximum Disability Award is increasing from $314,723.89 to $360,000. This measure comes into effect on April 1, 2017.
The Disability Award provides injured Canadian Armed Forces members or veterans with a one-time, tax-free payment for the pain and suffering associated with an injury or illness resulting from military service. The Disability Award is paid in recognition of these non-economic effects, of service-related disabilities on the lives of Canadian Armed Forces members and veterans.
For those who have already received a Disability Award, no application is necessary to receive the additional lump sum payment. Veterans who received a Disability Award and are getting monthly program benefits from Veterans Affairs Canada, as well as those who received a Disability Award payment within the last two years will automatically get a letter explaining the amount of their additional lump sum payment by mid-April.
Any veterans who received a Disability Award more than two years ago and who are not currently receiving monthly program benefits from Veterans Affairs Canada are encouraged to contact the Department immediately to confirm their address and banking information.
To calculate the amount of the one-time lump sum additional payment, the new maximum Disability Award amount that will go into effect on April 1, 2017 will be adjusted by Consumer Price Index for each year back to 2006 – which is the year the New Veterans Charter was implemented. The amount of the one-time lump sum additional payment will be the difference between this adjusted amount and the Disability Award and/or Death Benefit amount already paid.
If veterans would like to manage their information online and receive communication regarding their Disability Award increase along with other benefits and services, they can register for My VAC Account at www.veterans.gc.ca/myVACaccount . Through this on-line service, veterans will be able to provide information, if required, to expedite the additional lump sum payment. VAC will reimburse eligible veterans for financial advice on how to manage or invest the money.
“Our veterans have served our country valiantly, and I am pleased they will be receiving the services and support they need, and deserve”, concluded MP Eglinski.