Canadian Armed Forces Pay and Allowance Increase

Background:

The Canadian Armed Forces (CAF) announced a pay and allowance increase for CAF members on June 2, 2017. Former members—those who left the Canadian Armed Forces after March 31, 2014—will receive a lump sum back-payment and adjustments to their retirement benefits based on the new rates effective at their release (starting June 30, 2017).

Q1: Who will be affected by CAF’s pay and allowance increase?

Veterans who left the Canadian Armed Forces after March 31, 2014 and receive a financial benefit from Veterans Affairs Canada may be affected by the recent pay and allowance increase. A letter will be sent to the Veteran if there are any changes to the Veteran’s financial benefits.

Q2: What Veterans Affairs Canada (VAC) benefits will be affected by the Canadian Armed Force’s pay and allowance increase?

A number of financial benefits may be affected by CAF’s pay and allowance increase, including:

  • Earnings Loss Benefit (ELB)
  • Canadian Forces Income Support (CFIS)
  • Career Impact Allowance (CIA)
  • Supplementary Retirement Benefit (SRB)
  • Retirement Income Security Benefit (RISB)

Q3. How will Veterans be notified if their benefits are affected?

A letter will be sent to the Veteran if there are any changes to their Financial Benefits.

Q4. If a Veteran’s financial benefit(s) is/are affected, when will they be notified?

Veterans Affairs Canada is working closely with the Canadian Armed Forces and Public Services and Procurement Canada to obtain the required information. Veterans Affairs Canada will begin processing payment changes as soon as the information is available.

Q5. If a Veteran receives money from the Department of National Defence, will this affect their Financial Benefit payments from Veterans Affairs Canada?

If a Veteran receives any of the VAC benefits listed above, their payments may be affected as a result of changes to their pre-release military salary or Canadian Forces Superannuation. A letter will be sent to the Veteran if there are any changes to their Financial Benefits.

Q6. Could this possibly result in an overpayment situation?

Lump sum and salary changes may result in additional payments or overpayments depending on individual circumstances. A letter will be sent to the Veteran if there are any changes to their Financial Benefits.

Q7. Will a veteran have to submit new income information to Veterans Affairs Canada?

Veterans Affairs Canada is working closely with the Canadian Armed Forces and Public Services and Procurement Canada to obtain the required information. There may be some cases where Veterans need to provide information directly to VAC.

Q8. If a Veteran was released from the Canadian Armed Forces after March 31, 2014, what is the first thing they need to do?

Contact the Release Personnel Pay Office. Former CAF members will need to confirm that they have the correct banking and address information for their back-payments. Any banking updates need to be sent by e-mail and will not be accepted over the telephone.

Call: 1-800-773-7705

E-mail:
Regular Force DND.RPPOREG-LRDTSA.MDN@forces.gc.ca; or
Reserve Force RPPOReserve@forces.gc.ca

Q9. Where can Veterans and their families find more information about CAF’s pay and allowance increase?

More information is available at forces.gc.ca.

Q10. How will this affect my taxes?

We are working with other government departments to better understand the impacts on your financial benefits. The Canada Revenue Agency or Revenu Québec provide direction on how taxes are calculated. They may be able to answer your tax-related questions. I am happy to provide you with their contact information.

Canada Revenue Agency: 1-800-267-6999
Revenu Québec: 1-800-267-6299

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