Bill C-55: An Act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act

Third Session, Fortieth Parliament, 59-60 Elizabeth II, 2010-2011 STATUTES OF CANADA 2011CHAPTER 12 An Act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act ASSENTED TO 24th MARCH, 2011 BILL C-55 RECOMMENDATION His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled “An Act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act”. SUMMARY This enactment amends Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act by making the permanent impairment allowance available not only to veterans who are eligible for a disability award under that Act, but also to veterans who are eligible for a disability pension under the Pension Act. It also introduces a supplemental amount to the permanent impairment allowance for the most severely and permanently impaired veterans. It amends Part 3 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act to provide Canadian Forces members and veterans with a choice of payment options for a disability award. It also amends the Pension Act by making the exceptional incapacity allowance available not only to veterans and members of the forces who are receiving a disability pension under that Act, but also to veterans and members who are receiving both such a pension and a disability award under the Canadian Forces Members and Veterans Re-establishment and Compensation Act. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca .vis1 {position: absolute;display:block;} .vis2 {position: static;} 59-60 ELIZABETH II —————— CHAPTER 12 An Act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act [Assented to 24th March, 2011] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: SHORT TITLE Short title 1. This Act may be cited as the Enhanced New Veterans Charter Act. 2005, c. 21 CANADIAN FORCES MEMBERS AND VETERANS RE-ESTABLISHMENT AND COMPENSATION ACT 2. The heading “JOB PLACEMENT” before section 3 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act is replaced by the following: CAREER TRANSITION SERVICES 3. Section 3 of the Act is replaced by the following: Eligibility — members and veterans 3. (1) The Minister may, on application, provide career transition services to a member or a veteran who meets the prescribed eligibility requirements if the Minister is satisfied that the member or veteran requires assistance in making the transition to the civilian labour force. Assistance to spouses, common-law partners and survivors (2) The Minister may, on application, provide career transition services to a member’s or a veteran’s spouse, common-law partner or survivor if the spouse, common-law partner or survivor meets the prescribed eligibility requirements. 4. Subsections 4(2) and (3) of the Act are replaced by the following: Career transition plan (2) The Minister may develop and implement a career transition plan to address the needs that are identified in the assessment. Development of plan (3) In developing a career transition plan, the Minister shall have regard to any prescribed principles. 5. Section 5 of the Act is replaced by the following: Refusal to provide services 5. The Minister may refuse to provide career transition services to a person under this Part to the extent that the person is entitled to receive those types of services from another organization or body. 6. The portion of section 12 of the Act before paragraph (a) is replaced by the following: Eligibility — survivors 12. The Minister may, on application, provide rehabilitation services and vocational assistance to a member’s or a veteran’s survivor, if the member or veteran dies as a result of 7. (1) Subsection 35(1) of the Act is replaced by the following: Requirement to participate 35. (1) A Canadian Forces income support benefit under section 27 or 28 is only payable for each month that the veteran or survivor participates — to the extent required to meet the objectives of the program — in a career transition services program that is approved by the Minister. (2) Paragraph 35(4)(a) of the Act is replaced by the following: (a) the first day of the month in which the veteran or the survivor starts a career transition services program referred to in subsection (1), and (3) Paragraph 35(6)(a) of the Act is replaced by the following: (a) the last day of the month in which the veteran or survivor ceases to participate in a career transition services program referred to in subsection (1), unless the veteran or survivor is exempt from the application of that subsection, 8. (1) Subsection 38(1) of the Act is replaced by the following: Eligibility — veterans 38. (1) The Minister may, on application, pay a permanent impairment allowance to a veteran who has one or more physical or mental health problems that are creating a permanent and severe impairment if the veteran, in respect of each of those health problems, (a) has had an application for rehabilitation services approved under this Part; and (b) has received a disability award under Part 3 or a pension for disability under the Pension Act, or would have received such an award or pension but has not because (i) the aggregate of all of the veteran’s disability assessments and deemed disability assessments exceeds 100%, or (ii) the disability award is not yet payable because, in the opinion of the Minister, the disability has not stabilized. Ineligibility — exceptional incapacity allowance (1.1) A veteran who has received or is receiving an exceptional incapacity allowance under the Pension Act is not eligible to be paid a permanent impairment allowance. (2) Section 38 of the Act is amended by adding the following after subsection (2): Total and permanent incapacitation (3) The Minister may, on application, increase the permanent impairment allowance that may be paid under subsection (2) by the amount set out in item 2.1, column 2, of Schedule 2, if the Minister determines that the veteran is totally and permanently incapacitated. 9. Section 39 of the Act is replaced by the following: When allowance payable 39. The permanent impairment allowance under subsection 38(2) and an increase to the permanent impairment allowance under subsection 38(3) begin to be payable on the later of (a) the day on which the application for the allowance or increase, as the case may be, is made, and (b) the day that is one year prior to the day on which the application for the allowance or increase, as the case may be, is approved. 10. Subsection 48(1) of the Act is replaced by the following: Increase in extent of disability 48. (1) If a member or a veteran to whom a disability award under section 45 or 47 has been paid, in whole or in part, establishes that their extent of disability has subsequently increased, the Minister may, on application, pay a disability award to the member or veteran that corresponds to the extent of that increase. 11. Section 49 of the Act is replaced by the following: Death of member or veteran 49. If a member or a veteran dies as a result of an injury or a disease for which a disability award under section 45 has been paid, in whole or in part, or would be payable and their death occurs more than 30 days after the day on which the injury occurred or the disease was contracted or the injury or disease was aggravated, the member or veteran is deemed to have been assessed, at the time of their death, as having an extent of disability at that time of 100%. 12. Subsection 50(3) of the Act is replaced by the following: Rights of survivors and children (3) The survivor or child has, in respect of the application referred to in subsection (2), all of the rights that the member or veteran would have had had they lived, other than the right to make an election under subsection 52.1(1). 13. The Act is amended by adding the following after section 52: Election as to payment of award 52.1 (1) Subject to subsections (4) and (7), a member or a veteran to whom a disability award is to be paid under section 45, 47 or 48 may elect, within the prescribed time and in the prescribed manner, (a) to be paid the amount of the disability award as a lump sum; (b) to be paid each year, in lieu of the amount of the disability award, for up to the number of years indicated by the member or veteran, an amount equal to the amount determined by the formula A/B + C where A      is the amount of the disability award, B      is the number of years indicated by the member or veteran, and C      is the amount of interest for that year determined in accordance with the regulations; or (c) to be paid the portion, indicated by the member or veteran, of the amount of the disability award as a lump sum and to be paid each year, in lieu of the remainder of the amount of the disability award, for up to the number of years indicated by the member or veteran, an amount equal to the amount determined by the formula set out in paragraph (b) read as though the description of A were the amount of the disability award less the portion that the member or veteran elected to be paid as a lump sum. Notification (2) The Minister shall, in the prescribed manner, inform the member or veteran of their right to make an election under subsection (1). Failure to make election (3) If the member or veteran fails to make the election, the amount of the disability award is to be paid as a lump sum. Lump sum if disability is less than five per cent (4) If the extent of disability for which the disability award is to be paid is less than five per cent of total disability, the amount of the disability award is to be paid as a lump sum. Election in respect of remaining payments (5) A member or a veteran who has elected to be paid in annual payments and who has received at least one payment may elect, in the prescribed manner, to be paid a lump sum, determined in accordance with the regulations, in lieu of the annual payments remaining to be paid. Deemed election (6) A member or a veteran who dies after having elected to be paid in annual payments is deemed to have elected, on the day before their death, to be paid a lump sum, determined in accordance with the regulations, in lieu of the annual payments remaining to be paid. Member or veteran currently receiving annual payments (7) If a member or a veteran to whom a disability award (in this subsection referred to as the “new disability award”) is to be paid under section 45, 47 or 48 is currently being paid annual payments in respect of another disability award and they make an election referred to in paragraph (1)(b) or (c) in respect of the new award, (a) for the purpose of determining the amount of the annual payments in respect of the new disability award, (i) in the case of an election referred to in paragraph (1)(b), the description of A in that paragraph, is, despite that paragraph, the sum of the amount of the new disability award and the amount of the lump sum that the member or veteran would have received had they made an election under subsection (5) in respect of the other disability award, and (ii) in the case of an election referred to in paragraph (1)(c), the description of A in paragraph (1)(b), despite paragraph (1)(c), is the sum of the amount of the new disability award and the amount of the lump sum that the member or veteran would have received had they made an election under subsection (5) in respect of the other disability award less the portion of the new disability award to be paid to the member or veteran as a lump sum; and (b) no additional payments are to be made in respect of the other disability award. Amounts deemed to be compensation payable under this Act (8) The amounts determined by the application of paragraphs (1)(b) and (c) and the lump sum referred to in subsection (5) or (6) are deemed to be compensation payable under this Act. 14. Subsection 56(1) of the Act is replaced by the following: No award — decision under Pension Act 56. (1) No disability award shall be granted in respect of an injury or a disease, or the aggravation of an injury or a disease, if the injury or disease, or the aggravation, has been the subject of an application for a pension under the Pension Act and the Minister, or the Commission as defined in section 79 of that Act, has rendered a decision in respect of the application. 15. Subsection 76(1) of the Act is replaced by the following: Application made to Minister 76. (1) An application for career transition services, rehabilitation services, vocational assistance or compensation under this Act shall be made to the Minister in the form directed by the Minister and shall include any information that is required by the regulations to accompany the application. 16. Section 90 of the Act is replaced by the following: No interest payable 90. Except in the case of amounts payable to a member or a veteran who makes an election referred to in paragraph 52.1(1)(b) or (c) or subsection 52.1(5) or who is deemed to have made an election under subsection 52.1(6), no interest shall be paid in respect of any compensation that is payable under this Act. 17. (1) Paragraph 94(a) of the Act is replaced by the following: (a) respecting the time and manner of making an application for career transition services, rehabilitation services, vocational assistance or compensation under this Act, and respecting the information that is required to accompany the application; (2) Paragraph 94(e) of the Act is replaced by the following: (e) respecting the provision of information or documents to the Minister by persons who are in receipt of career transition services, rehabilitation services, vocational assistance, an earnings loss benefit, a Canadian Forces income support benefit, a permanent impairment allowance or a clothing allowance under this Act, and authorizing the Minister to suspend delivery of the services or assistance or payment of the benefit or allowance until the information or documents are provided; (3) Section 94 of the Act is amended by adding the following after paragraph (i): (i.1) respecting the determination of an amount of interest for the purposes of the description of C in paragraph 52.1(1)(b); (i.2) respecting the determination of lump sums for the purpose of subsections 52.1(5) and (6); (4) Section 94 of the Act is amended by striking out “and” at the end of paragraph (j) and by adding the following after that paragraph: (j.1) prescribing the way in which anything that is required or authorized by this Act to be prescribed is to be determined; and 18. Schedule 2 to the Act is amended by replacing (Subsections 38(2) and 58(1), section 61, paragraph 94(c) and subsection 98(2)) after the heading “SCHEDULE 2” with (Subsections 38(2) and (3) and 58(1), section 61, paragraph 94(c) and subsection 98(2)). 19. Schedule 2 to the Act is amended by adding the following after item 2: Column 1 Column 2 Item Allowance or Benefit Amount ($) 2.1 Permanent impairment allowance supplement for total and permanent incapacitation 12,000.00 (yearly) R.S., c. P-6 PENSION ACT 1999, c. 10, s. 16 20. Subsections 72(1) and (2) of the Pension Act are replaced by the following: Amount of allowance 72. (1) In addition to any other allowance, pension or compensation awarded under this Act, a member of the forces shall be awarded an exceptional incapacity allowance at a rate determined by the Minister in accordance with the minimum and maximum rates set out in Schedule III if the member of the forces (a) is in receipt of (i) a pension in the amount set out in Class 1 of Schedule I, or (ii) a pension in a lesser amount than the amount set out in Class 1 of Schedule I as well as compensation paid under this Act or a disability award paid under the Canadian Forces Members and Veterans Re-establishment and Compensation Act, or both, if the aggregate of the following percentages is equal to or greater than 98%: (A) the extent of the disability in respect of which the pension is paid, (B) the percentage of basic pension at which basic compensation is paid, and (C) the extent of the disability in respect of which the disability award is paid; and (b) is suffering an exceptional incapacity that is a consequence of or caused in whole or in part by the disability for which the member is receiving a pension or a disability award under that Act. Ineligibility — permanent impairment allowance (1.1) A member of the forces who is eligible for a permanent impairment allowance under the Canadian Forces Members and Veterans Re-establishment and Compensation Act is not eligible to be awarded an exceptional incapacity allowance. Determination of exceptional incapacity (2) Without restricting the generality of paragraph (1)(b), in determining whether the incapacity suffered by a member of the forces is exceptional, account shall be taken of the extent to which the disability for which the member is receiving a pension or a disability award under the Canadian Forces Members and Veterans Re-establishment and Compensation Act has left the member in a helpless condition or in continuing pain and discomfort, has resulted in loss of enjoyment of life or has shortened the member’s life expectancy. REVIEW Review 20.1 Within two years after the day on which this section comes into force, a comprehensive review of the provisions and operations of this Act must be undertaken by any committees of the Senate and of the House of Commons that are designated or established by the Senate and the House of Commons for that purpose. COMING INTO FORCE Order in council 21. The provisions of this Act come into force on a day or days to be fixed by order of the Governor in Council. Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada