Hello,
I'm past my two years with Manulife and considered "totally disabled" I now receive CPP. This is my first month for theses changes, VAC requires me to upload my earnings to calculate my IRB properly. Yesterday I received a payment from CAF LTD, I wasn't aware this payment although smaller would continue. Would I be correct to say After being considered DEC you are entitled to your, CF pension, CAF LTD until 65, CPP and IRB though VAC for a top up if necessary to reach my pre release salary, I also have my Disability Tax credit open. As all of you are aware the first couple of years after release is a financial roller coaster, The income tax you owe is outrageous, plus then you get hit with CF pension superannuation act because you now are entitled to CPP. Which for myself is 15g's and then also owe Sisip Money for over payment once you CPP is open. I'm tired of owning money and I want to my sure my IRB is calculated correctly.
My situation sound a lot like yours. I am DEC, rolled over with SISIP, have pension income, and qualify for DTC. I was medically released, had my first 2 years of SISIP LTD and continued on LTD as I continued to meet the criteria but remained for over a year under the VOC Rehab category until all my medical conditions were diagnosed and fairly stable. My disability rating went to 98%. VAC had an occupational nurse assess me and after that, I was moved under DEC. Unless I miraculously recover and medical documentation supports this miracle, I will remain on SISIP (manulife) or CAF LTD until I reach retirement at age 65. SISIP is funded under CAF and VAC prefers to keep as many people under this program as this money doesn’t come out of their budget. The 15% top up is not funded at all by CAF and that is why we get the top up from then. Manulife’s contract / funding does not have any directions to include the top up / when the contract is renegotiated, this could be moved under their administration.
Since the biggest portion of my wage / veteran benefit comes from manulife, I report all my other sources of income to them. Manulife and VAC do not share information. I had a period of time where VAC was clawing back the same income I was reporting to manulife and it took over 2 years to sort out. My reserve pension was delayed because of confusion as to my eligibility and lack of knowledge by those administering it… and they reported / shared with VAC… so both started deducting it… and demanding the lump sums clawed back at the untaxed amount. The same happened when I got my CPPD. The first 4 years were a disaster for me.
As of now, I report all my pension incomes from the military, public service, and Canada pension to SISIP manulife. This money is deducted dollar for dollar from my 75% ELB by manulife. VAC provides me with the 15% top and my pain / suffering compensation / additional amount in lieu of lump sum award.
Every 2 years I still have to provide manulife and VAC with an update on my medical condition and let them know what has improved or if new issues are happening. I have been able to do these updates over the phone. Based on my response to these questions determines my ability to keep my DEC / veterans benefits.
I am not sure, but I heard that once I turn 55 or maybe it’s 60, VAC and SISIP will stop asking me to complete this form and I will permanently keep my DEC. Then at age 65, I will automatically roll over to the pension benefit… i believe this is all classed as IRB, income replacement benefit now… and vac still calls it that even after you turn 65.
I am told that SISIP / manulife will transfer me over to VAC and the month I turn 65, my IRB will be 70% of what I received the month before. So I will loose 20% of my income.
What I don’t know is how the claw backs will work and if VAC will deduct my federal pensions ( PSAC, CF, CPP) from that 70% or if I will be able to keep this income. This would be nice to know for pension splitting / tax reasons and whether or not I would prefer to defer my CPP until age 70…
In short… you will need to fill out a form every year or two for VAC and manulife. This determines you still meet the DEC criteria. This then allows you to continue your IRB minus the pension / income clawback. This will go on until you reach 55 or maybe 60 with the forms. Then once you hit 65, your IRB will be recalculated at 70% and will continue as long as you live.
