Question Period Note: VETERANS SURVIVOR 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 survivors, 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 worked with Statistics Canada and the Canadian Institute for Military and Veteran Health Research to learn about the needs of these survivors. The Department is using the research to determine how best to support these survivors.

BACKGROUND — VETERANS SURVIVOR 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 (CFSA). Being a qualified surviving spouse would also mean the survivor would be entitled to coverage under the Public Service Health Care Plan and Pensioners Dental Care Plan.

North Island-Powell River MP Rachel Blaney, NDP Critic for Veterans Affairs, has tabled private member’s bill C-221 to eliminate the marriage after 60 clause from the CFSA. The first reading of the bill was December 16, 2021.

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 2019, $150 million was committed over five years to establish a Veterans Survivor 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 for Military and Veteran 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:
• 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.
o Virtually all were female
o Most (90%) were 70 or older
o Overall, their incomes were higher than other similarly aged Canadian females (i.e., median income of $34,900 -vs- $25,600)
• Of these 4,490 VSF survivors:
o 850 (19%) had incomes below the Low Income Measure ($24,890 before-tax); and
o 1,220 (27%) were in receipt of the Guaranteed Income Supplement.

• The increase to the Old Age Security (OAS) announced in Budget 2021 (a 10% increase to the OAS pension for those 75 years and older beginning in July 2022) may address the income issues for the majority (approximately 75% ) 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.

WHEN PRESSED:
Q1 – The Veterans Survivor Fund won’t address the issue of the marriage after 60 clause. Are you considering removing the clause?

A - The “marriage after 60 claw-back clause” refers to a provision in the Canadian Forces Superannuation Act which falls under the authority of the Minister of National Defence. Changes to the CFSA would be made by Minister of National Defence. Veterans Affairs Canada is exploring how best to support these survivors within its mandate.

Q2 – The Veterans Survivor Fund was announced in 2019. Why has nothing been announced yet?

A - When the Budget 2019 commitment was made to develop a Veterans Survivor Fund, little was known about the survivor population and who may benefit from this Fund. In order to develop informed options to support these survivors, Veterans Affairs Canada had to understand their needs. The research is complete and Veterans Affairs Canada is exploring options about how best to support these survivors.