Veterans Well-being Regulations

54 (1) For the purposes of subsection 52(3) of the Act, a disability award shall be reduced

• (a) if a compensatory amount is paid or payable to the member or veteran, by either the compensatory amount or the full amount of the disability award, whichever is less; or

• (b) if an additional amount is paid or payable to the member or veteran on a periodic basis, by either the actuarial compensatory amount or the full amount of the disability award, whichever is less.

(2) The present value of an additional amount paid on a periodic basis

• (a) if the payor of the additional amount has calculated its present value, is that additional amount; or

• (b) if the payor has not calculated its present value, is the amount determined by the following formula:

  PV = R[1-(1+i)^-n]/i

  where

  PV

  the present value,

  R

  is the amount of the periodic payment,

  i

  is the discount rate used to value the liability for veteran future benefits as published in the Public Accounts of Canada for the fiscal year prior to the date of the calculation, and

  n

  is the number of periodic payments to be made by the payor.

(3) If the disability award of a member or veteran has been reduced in accordance with paragraph (1)(b) and the member or veteran subsequently dies before receiving periodic payments totalling the actuarial compensatory amount, the reduction of the disability award shall be recalculated so that the disability award is reduced by the lesser of

• (a) the full amount of the disability award, and

• (b) the present value of the periodic payments received by the member or veteran before their death, determined by the formula set out in paragraph (2)(b).

(4) If the recalculation of the reduction results in an increase in the amount of the disability award, the following amount shall be paid to the survivor or the dependant child of the member or veteran in accordance with section 55 of the Act:

• (a) if the original reduction under paragraph (1)(b) was equal to the full amount of the disability award, the entire amount of the increased disability award; or

• (b) if the original reduction under paragraph (1)(b) was less than the full amount of the disability award, the difference between the increased disability award and the amount of the original disability award paid to the member or veteran.