New Veterans Charter - Criticisms and Facts The Canadian Forces Members and Veterans Re-establishment and Compensation Act, or New Veterans Charter, was implemented in 2006. Recently a number of criticisms of the Charter have been communicated to the Department through various sources. This paper provides key facts which respond to the criticisms. 1) Criticism: The New Veterans Charter is just cost-savings for Government. The New Veterans Charter was created in response to policy research, which highlighted serious flaws in the disability pension approach, including: < VAC s approach to meeting the needs of Veterans consisted of cash (monthly disability pension) and piecemeal healthcare only accessed through the disability pension gateway which failed as it encouraged illness and dependency and did not meet individual need. < Approval was inconsistent with modern disability management to avoid permanent disability. < Research indicated that many Canadian Forces (CF) members suffered significant levels of chronic pain, permanent disability, and operational stress injuries; many had family stress and struggled with employment, income and inadequate education. < Each year DND was releasing 4,000 members whose average age was 36 but the required supports to enable a successful re-establishment into civilian life were not in place. There were also about 400,000 former Canadian Forces (CF) members in Canada, many of whom had unmet rehabilitation and health needs. < Moderately to seriously disabled Veterans and their families were not successfully integrating into civilian life. < Several studies called for action to address the reestablishment needs of Canada s Canadian Forces (CF) Veterans including the Department of National Defence s Care Injured Personnel and Their Families (1997); the Croatia Board of Inquiry (2000), VAC s Review of Veterans Care Needs (2000) and the Veterans Affairs Canada-Canadian Forces Advisory Council (VAC-CFAC) (2004). Government listened and invested an additional $740 million for the first five years of the New Veterans Charter to modernize programs to better serve Canadian Forces (CF) Veterans. Through the New Veterans Charter, investments are made up front to provide needs based rehabilitation services, income, education, health care and other supports to ensure successful reintegration. Page 1 of 8
Government has re-distributed expenditures so that Veterans who need more support, get more support under the New Veterans Charter; those who need less, get less support is proportional to need. If the New Veterans Charter is successful over the long term, more Veterans will have a successful transition to civilian life. If that is achieved, costs could be less over the long term. If eventually Government saves money, it will be because more Veterans will have successfully made it in civilian life, which is the main goal. 2) Criticism: The New Veterans Charter lump sum disability awards are a payoff and a goodbye by government so long term disability pensions will not have to be paid. The Disability Award offers up front financial and investment opportunities to assist the Veteran and his or her family transition to civilian life. The lump sum disability award is only one of the benefits available to support Veterans under the New Veterans Charter these payments do not stand alone. The New Veterans Charter also provides other long-term financial benefits, particularly for those most in need because of their service related disabilities. These include the Permanent Impairment Allowance (PIA), Canadian Forces Income Support (CFIS) and the monthly Earning Loss (EL) program which supplements existing income to guarantee that severely disabled Veterans always have 75% of pre-release salary as long as needed until age 65. There are no time limits for New Veterans Charter needs based programs the benefits are on the books forever and can be used whenever and as often as they are needed. Prior to the New Veterans Charter, only the Disability Pension program was available which was never designed to help with transition to civilian life, and could not provide a sufficient financial stream to compensate for loss of income. 3) Criticism: New Veterans Charter offers no long-term support. The New Veterans Charter programs were specifically designed to provide a comprehensive social safety net and support for the long term. Individualized case plans are developed and managed in collaboration with the Veteran and his or her family. New Veterans Charter s cornerstone Rehabilitation program provides comprehensive tailored support whenever it is needed, for as long as it is needed, and as often as it is needed, with no time limits. Page 2 of 8
For those unable to work, the New Veterans Charter provides monthly Earnings Loss (EL) replacement up to the normal age of retirement, age 65; beyond age 65, most Veterans have access to Superannuation, Canada Pension, and other retirement income. For the few who may not, the New Veterans Charter provides the Canadian Forces Income Support program. For those Veterans with the most significant impacts to their lives because of service related disability, a Permanent Impairment Allowance (PIA) pays a monthly amount for life payments range between $536 and $1,609 per month. To assist Veterans receiving long-term monthly Earnings Loss (EL) with retirement savings, at age 65 they receive a lump sum payment equal to 2% of their lifetime monthly Earnings Loss (EL) payments. Access to health care for service related disability and access to the Public Service Health Care Plan continues for life. 4) Criticism: The New Veterans Charter ignores families. The New Veterans Charter created many new support options for the needs of families much more than has ever previously existed in VAC s Veteran legislation. Vocational assistance and rehabilitation services may be provided to the partners of Canadian Forces (CF) Veterans who are unable to work Child care support can be made available if the Veteran is in Rehabilitation. Counselling services are available for family members. There is family access to the Public Service Health Care Plan. Consistent with previously existing legislation, Educational Support is available for the children of deceased Veterans who were severely disabled or whose death is related to service. In cases of service related death, death benefits to survivors include the lump sum Death Benefit of $276,000, as well as the monthly Earnings Loss benefit that would have paid to the Veteran this pays irrespective of the income, or future income of the surviving partner. 5) Criticism: New Veterans Charter is slow to respond Page 3 of 8
Before the New Veterans Charter, no VAC support could be provided until the Veteran had received a Disability Pension it was the gateway to all benefits. This took time six month service standard to receive a decision. With New Veterans Charter, services and support can be provided more quickly service standard of 4 weeks to receive a decision regarding Rehabilitation eligibility. Services and supports can immediately be provided based on need there is no disability pension or award gateway requirement. The Rehabilitation program, together with monthly Earnings Loss support and other New Veterans Charter benefits, is available right at the time of release, or as soon as the need for help with transition can be determined. The favourable rate for rehabilitation decisions is high since 2006, 94% of all applications for rehabilitation were approved; since April 2009, 96% were approved. Since implementing New Veterans Charter in 2006, VAC has strengthened front line case management. VAC and the DND are establishing Integrated Personnel Support Centres to provide a seamless care to injured/ill members and their families. Integrated Personnel Support Centres will co-locate key VAC Client Services staff with Department of National Defence (DND)/Canadian Forces (CF) staff to support Canadian Forces (CF) members recovery, rehabilitation and reintegration. Efforts will continue to realign field operations to ensure the right staff, with the right skills, are in the right place to provide service to Veterans. While much progress has been made, more is to be done. 6) Criticism: The situation was better for Canadian Forces Veterans before the New Veterans Charter Before the New Veterans Charter there was only the Disability Pension program, and if a Veteran became eligible for that, then related treatment programs were also available. This encouraged illness and dependency and did not meet individual need. Post New Veterans Charter, new features include: < full treatment for the service related injury was maintained (in additional to New Veterans Charter programs) < VAC case managers who ensure that services are tailored to the individual needs of releasing Canadian Forces members and their families; < Integrated Personnel Support Centres which co-locate key VAC Client Services staff with Department of National Defence (DND)/Canadian Forces (CF) staff to support Canadian Forces members recovery, rehabilitation and reintegration; < a comprehensive Rehabilitation program; Page 4 of 8
< a dual approach to financial compensation with a Disability lump sum Award, and a monthly Earning Loss benefit while in rehabilitation, or till age 65 if seriously disabled and unable to work; < a Supplementary Retirement benefit payable at age 65; < for the most severely disabled, a monthly allowance (which pays between $536 - $1600 monthly for life) to compensate for the loss of career path; < for medium and seriously disabled veterans the amount of financial compensation exceeds what was available under the Disability pension program; < expanded mental health services and supports; < family support benefits; < a death benefit of $276,000 and monthly Earnings Loss benefits for survivors of service related death; < Career Transition Services (formerly the Job Placement Program); < access to the public service health care plan; and < financial counselling. 7) Criticism: The Service Income Security Insurance Plan clawback is unacceptable This issue is currently before the courts so it is not appropriate to comment publicly at this time. The practice of offsetting one disability, retirement or employment related benefit (e.g. employment earnings) by another is common practice in the long term disability insurance industry as well as provincial and federal workers compensation plans across Canada. While each Long- Disability or workers compensation plan may have some differences in terms of the percentage amount of the benefit payable or what other benefit types are to be offset, each plan has some type of offsetting formula in place which is used when calculating the amount of benefit that is payable under their particular plan. Examples of long term disability plans that offset one disability benefit by another include the Public Service Superannuation Plan, the Public Service Management Insurance Plan, the Royal Canadian Mounted Police (RCMP) Long- term Disability plan, and the British Columbia (BC) Public Service Long-term Disability plan. Every provincial Workers Compensation Board has some form of benefit offsetting in place as well. For VAC, the offsetting issue is eliminated by the Disability Award on a goforward basis i.e., the Disability Award is not offset from the Service Income Security Insurance Plan-Long- Disability, or from VAC s monthly Earnings Loss payments. The Disability Pension does continue to be offset in accordance with legislative requirements. Page 5 of 8
8) Criticism: The Disability Pension provides lifetime security; the lump sum Disability Award is a one time payment that encourages financial irresponsibility when it s gone, it s gone. While this is a legitimate concern, it is only a small few who are actually at risk (More than 19,500 clients have received a disability award; of these only 712 clients have received an award amount of $125,000 or greater; of these, 72% have a psychiatric condition. Only a very small portion of this group would be at risk). An individual may have an operational stress injury, but this does not necessarily mean they have the inability to make good financial decisions. All individuals have the right to self determination and choice and for most it is a solid support mechanism. Where the concern is valid is in relation to those who would meet the test of being legally incompetent. VAC is currently contacting disability award recipients to understand Veterans and members experiences with the receipt of a lump sum Disability Award. Preliminary findings indicate that 90% obtained financial advice, and 56% of those found the advice sufficient for managing their Disability Award. Other entities like the courts and insurance companies also issue lump sum payments. Others are also concerned with the irresponsible mismanagement of money but barring a declaration of legal incompetence, self determination and choice must be respected. The Disability Award is just one element of the New Veterans Charter package it cannot be compared directly with the Disability Pension. The New Veterans Charter s dual award approach provides for the economic (Financial Benefits) and non-economic (Disability Award/Death Benefit) impacts of service-related or career-ending disability. Financial benefits provide an income stream to age 65, as required and guarantees a basic standard of living for life. This dual-award approach is consistent with principles of modern disability management it offers early intervention and a focus on wellness, while compensating both for pain and suffering, and economic loss. Seriously injured members and Veterans are guaranteed to be better off under the New Veterans Charter, with better financial supports and optimal supports for rehabilitation. The New Veterans Charter provides a safety net with no time limits Veterans can come to VAC for assistance with service-related disability at any time in the future, and for as many times as required. 9) Criticism: The mental health supports are not adequate Page 6 of 8
Over the past five years the number of clients receiving disability benefits related to a psychiatric condition has tripled to 12,689. Veterans with mental health conditions have access to specialized care services, including assessment, early intervention, treatment, rehabilitation, and ongoing care through a network of Operational Stress Injury (OSI) clinics across the country. VAC has established nine specialized outpatient clinics for operational stress injuries across the country. The tenth is a a Residential Treatment Clinic for Operational Stress Injury (OSI) at Ste. Anne s Hospital (SAH), the first of its kind in Canada. More than 2,736 clients have been helped through these clinics. The VAC Operational Stress Injury (OSI) clinics are integrated with the Department of National Defence network of Operational Trauma and Stress Support Centres (OTSSC) in place across the country. Other mental health supports/services include: the VAC/DND Operational Stress Injury Social Support program; pain management services; co-morbid addictions/post-traumatic Stress Disorder treatments; tele-mental health services; VAC Assistance Line; network of 2000 registered service providers and, Clinical Care Manager Services where a mental health professional works directly with the Veteran and their family who need extra support for a period of time. 10) Criticism: The New Veterans Charter consultation process was flawed. A Veterans Affairs Canada-Canadian Forces Advisory Council (VAC-CFAC) report to the Minister based on expert advice formed the basis of the modernized New Veterans Charter programs and services. During the New Veterans Charter development, several rounds of consultations were held with Veterans Afffairs Canada-Canadian Forces Advisory Council (VAC-CFAC) members and representatives of six major Veterans organizations. Programs internationally were examined and the best features from each country were selected for inclusion in the New Veterans Charter. Focus groups were held with Canadian Forces members, Veterans and their families to inform program design. Information sessions were held with and feedback was sought from Canadian Forces members prior to the tabling of the Bill at a number of bases from Halifax to Victoria. Statute provisions were shared with Veterans organizations to obtain stakeholder feedback and to gauge reaction and support. Post-approval, but before implementation in 2006, consultations continued with major Veterans organizations, the VAC Ad Hoc Advisory Group on Special Needs (SNAG) was established and town hall sessions involving some 3,000 participants were held on CF bases. Page 7 of 8
11) Criticism: Government committed to the New Veterans Charter as a Living Charter, yet there are no concrete examples of where change has been made. The New Veterans Charter is a young program - we are only 4 years in. Like any new program, the first years have been spent on gaining operational experience what is working, what is not. We are monitoring and have made changes to our service delivery to ensure the program is fully working as intended. VAC and DND have established 19 Integrated Personnel Support Centres to provide a seamless care to injured/ill members and their families. IPSC co-locate key VAC Client Services staff with Department of National Defence (DND)/Canadian Forces (CF) staff to support Canadian Forces members recovery, rehabilitation and reintegration. We recently issued the contract for a national Vocational Rehabilitation provider. Several policies and directives have been updated to ensure current program authorities are maximized. A departmental audit is currently underway. In the Fall of 2007, VAC asked the New Veterans Charter Advisory Group (NVCAG) to prepare a report that would identify needs of Canadian Forces Veterans that are not currently being met under the New Veterans Charter and recommend a course of action legislative, regulatory or policy that would enable VAC to better serve its clients. The New Veterans Charter Advisory Group (NVCAG) report was received in the Fall 2009. VAC is analysing the report and exploring options/solutions to address substantiated gaps. The Department is currently realigning its operations through a Concept of Operations plan to optimize service delivery. Page 8 of 8