Question Period Note: VETERANS SURVIVORS FUND

VETERANS SURVIVORS FUND

• Veterans’ spouses and common-law partners play a crucial role in caring for Veterans. The Government of Canada is committed to ensuring that those who served, and their spouses, have the support they need.

• In 2019, $150 million was committed to help survivors who married Veterans after the Veteran’s 60th birthday have the financial support they need.

• Veterans Affairs Canada has worked with Statistics Canada, and the Canadian Institute for Military and Veteran Health Research to learn about the characteristics and needs of these survivors.

• The Department is using the research to determine how best to support these survivors.

BACKGROUND – VETERANS SURVIVORS FUND
It has been a long standing concern that spouses who marry Veterans after the Veteran turns 60 are not entitled to automatic survivor pensions under the Canadian Forces Superannuation Act. Being a qualified surviving spouse also entitles them to coverage under the Public Service Health Care Plan and Pensioners Dental Care Plan.

Although, Veterans can obtain coverage for an otherwise ineligible survivor through the Optional Survivor Benefit, less than 1% of CAF superannuation pensioners choose this option. Under this arrangement, the Veteran opts to reduce their CAF superannuation pension payments (by 30% – 50%) in exchange for a future survivor pension.

In, $150 million was committed over five years to establish a Veterans Survivors Fund to “better support Veterans who married over the age of 60 and their spouses”.

In February, 2021, VAC received the results of research conducted in collaboration with Statistics Canada and the Canadian Institute of Military Health Research (CIMVHR) to identify the size and characteristics of the survivor population. The Department is using the information to determine how best to support these survivors.

The research revealed the following data about this group:

o A total of 4,490 living survivors entered into a relationship (married/common-law) with a Veteran (CAF Superannuate) after the Veteran’s 60th birthday.
 Virtually all were female
 Most (90%) were 70 or older;
 Overall, their incomes were higher than other similarly aged Canadian females (i.e., median income of $34,900 -vs- $25,600)

o Of these 4,490 VSF survivors:
 850 (19%) had incomes below the Low Income Measure ($24,890 before-tax); and
 1,220 (27%) were in receipt of the Guaranteed Income Supplement

o The planned increase to the Old Age Security (OAS) announced in Budget 2021 will address the income issues for the majority (approximately ¾) of these survivors.
 It is anticipated that the OAS increase will result in less than 250 VSF survivors having incomes below the Low Income Measure

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