The Disability Award is part of a much wider package of services and benefits provided to ill and injured Veterans. Its sole intent is to recognize and compensate for the non-economic impact (pain and suffering) of an injury or illness, and provide immediate financial help.
Veterans may also be eligible for a number of monthly financial supports which recognize and help to compensate for the economic impact of an injury or illness. Among these financial supports is the Earnings Loss Benefit. It guarantees that the monthly income of recipients will not fall below 90% of their pre-release military salary.
Effective October 2016, the Government of Canada enhanced the Earnings Loss Benefit to ensure a total pre-tax income of at least $44,496 a year (2016 rate) regardless of the salary a soldier was earning in the Forces.
Additional monthly financial benefits include the Canadian Forces Income Support, a clothing allowance and the Career Impact Allowance, which ranges between $592 and $1,776 per month, payable for life, for our most seriously disabled Veterans. There is also a one-time supplementary retirement benefit, payable at age 65, to recognize the reduced ability of injured and ill Veterans to put money aside in a private pension plan.
The Government of Canada implemented enhancements to the New Veterans Charter which make it easier to qualify for the Career Impact Allowance (CIA) and the Exceptional Incapacity Allowance.
As well, the Government of Canada added a new $1,088 monthly supplement for eligible recipients of the PIA. With these changes, our most severely injured men and women are guaranteed an annual income of at least $62,600 a year.
The previous system of disability pensions had the effect of encouraging increasingly younger modern-day Veterans to focus on their deteriorating health rather than promoting their recovery and rehabilitation. It did not support successful transition to civilian life.
The Disability Award is a tax-free payment of up to $310,378 (in 2016) based on the extent of the disability. Veterans are counselled about the importance of getting independent financial advice to assist them in managing their Disability Award. The cost for financial advice may be covered by Veterans Affairs Canada, to a maximum of $500.
On April 1, 2017, the maximum Disability Award will be increased from $310,378 to $360,000.
The Government of Canada also implemented payment options for Disability Awards. These options are:
a lump-sum payment;
an annual instalment over the number of years of a Veteran’s choosing; or
a combination of these two payment options.
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Source: http://docphy.com/business-industry/business/lump-sum-disability-award.html
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