Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

Limitation

Special Duty Areas and Special Duty Operations

Transitional Provisions Relating to Income Replacement Benefit

Definitions

Marginal note:Definitions

98 The following definitions apply in this section and in sections 99 to 129.

Consumer Price Index

Consumer Price Index means the annual average all-items Consumer Price Index for Canada (not seasonally adjusted) published by Statistics Canada. (indice des prix à la consommation)

former Act

former Act means this Act as it read immediately before April 1, 2019. (ancienne loi)

indexed

indexed means adjusted annually on January 1 in accordance with the annual percentage increase to the Consumer Price Index, rounded to the next 0.10%, for the year ending on October 31 of the previous year. (indexé)

new Act

new Act means this Act as it reads on April 1, 2019. (nouvelle loi)

Earnings Loss Benefit

Members and Veterans

Marginal note:Veterans’ deemed entitlement to income replacement benefit

• 99 (1) If, before April 1, 2019, the Minister determined, as a result of an assessment of a veteran’s needs under subsection 10(1) of the former Act, that a rehabilitation plan or a vocational assistance plan should be developed for the veteran in respect of a physical or a mental health problem and if, as a result of the Minister’s determination, an earnings loss benefit was payable to the veteran on March 31, 2019 under section 18 of the former Act, then the veteran is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 18 of the new Act in respect of that health problem and the following rules apply in respect of the veteran:

  • (a) for the purposes of subsection 18(2) of the new Act, the veteran is deemed, on April 1, 2019, to be informed of their entitlement to the income replacement benefit;

  • (b) despite subsection 18(3) of the new Act, the benefit begins to be payable to the veteran on April 1, 2019;

  • (c) the physical or mental health problem in respect of which the veteran is deemed to be entitled to the benefit is deemed to be the physical or mental health problem referred to in subsection 18(5) or (7) of the new Act;

  • (d) if, on a day before April 1, 2019, the Minister determined that the veteran has a diminished earning capacity that is due to the physical or mental health problem in respect of which the veteran is deemed to be entitled to the benefit, the Minister is deemed to have made that determination, on that day, under subsection 18(5) of the new Act;

  • (e) if, on March 31, 2019, the veteran was entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act, the veteran is deemed, on April 1, 2019, to be entitled to continue to receive the income replacement benefit under subsection 18(7) of the new Act; and

  • (f) the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is to be determined under subsection 19(1) or 19.1(1) of that Act, subject to subsections (2) to (5).

• Marginal note:Limitation — career progression factor

  (2) If the physical or mental health problem in respect of which the veteran is deemed to be entitled to the income replacement benefit under subsection (1) did not result primarily from service in the Canadian Forces and an increase to the career impact allowance was not payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, then the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is determined under subsection 19(1) of that Act without any periodic adjustment in accordance with a career progression factor.

• Marginal note:Protected amount — veteran under age 65

  (3) If, in determining the amount of the income replacement benefit that is payable to the veteran for a given month, the amount determined for A in subsection 19(1) of the new Act is less than the sum of the following amounts, indexed until the time the benefit is payable, then the amount determined for A is to be replaced by that sum:

  • (a) the amount determined for A in subsection 19(1) of the former Act that was used to calculate the earnings loss benefit payable to the veteran under section 18 of that Act for the month of March 2019, and

  • (b) if an increase to the career impact allowance was payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, the amount of the increase that the veteran received for the month of March 2019 or, if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under that subsection for that month if the increase had been payable for the whole month.

• Marginal note:Protected amount — veteran 65 years or older

  (4) If, in determining the amount of the income replacement benefit that is payable to the veteran for a given month, the amount determined for A in subsection 19.1(1) of the new Act, indexed until the time the benefit is payable, is less than 70% of the sum of the following amounts, indexed until the time the benefit is payable, then the amount determined for A is to be replaced by 70% of the sum of the following amounts, indexed until the time the benefit is payable:

  • (a) the amount determined for A in subsection 19(1) of the former Act that was used to calculate the earnings loss benefit payable to the veteran under section 18 of that Act for the month of March 2019, and

  • (b) if an increase to the career impact allowance was payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, the amount of the increase that the veteran received for the month of March 2019 or, if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under that subsection for that month if the increase had been payable for the whole month.

• Marginal note:Minimum amount of income replacement benefit

  (5) Despite subsections (3) and (4), if an increase to the career impact allowance was payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, then the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is not to be less than,

  • (a) if the increase was payable for the whole month of March 2019, the amount of the increase that the veteran received for that month, indexed until the time the benefit is payable; or

  • (b) if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under subsection 38(3) of the former Act for that month if the increase had been payable for the whole month, indexed until the time the benefit is payable.

• Marginal note:Amount paid

  (6) If an increase to the career impact allowance was payable to a veteran referred to in subsection (1), under subsection 38(3) of the former Act, on March 31, 2019, then the Minister shall pay to the veteran, for every month for which the income replacement benefit is not payable to the veteran and that is included in the period beginning with the month of April 2019 and ending with the month in which the veteran dies, an amount equal to,

  • (a) if the increase was payable for the whole month of March 2019, the amount of the increase that the veteran received for that month, indexed until the time the amount is payable under this subsection; or

  • (b) if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under subsection 38(3) of the former Act for that month if the increase had been payable for the whole month, indexed until the time the amount is payable under this subsection.

• Marginal note:Non-application of subsection (6)

  (7) Subsection (6) does not apply if the Minister determines that the veteran’s eligibility for an amount that is payable under that subsection is based on a misrepresentation or the concealment of a material fact. The determination is deemed to be made under Part 2.

• Marginal note:Amount deemed to be compensation

  (8) An amount paid or payable under subsection (6) is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

• Marginal note:Application of subsection 88(4)

  (9) Subsection 88(4) applies to an amount paid under subsection (6).

Marginal note:Pending applications — earnings loss benefit and rehabilitation services

100 If, before April 1, 2019, a veteran made an application — in respect of a physical or a mental health problem — for an earnings loss benefit under subsection 18(1) of the former Act and for rehabilitation services or vocational assistance under section 8 or 9 of that Act but the Minister did not make a determination in respect of either of those applications before that date, then the veteran is deemed to have made an application for an income replacement benefit under subsection 18(1) of the new Act on that date.

Marginal note:Pending applications — earnings loss benefit

• 101 (1) If, before April 1, 2019, the Minister approved an application for rehabilitation services or vocational assistance made by a veteran under section 8 or 9 of the former Act in respect of a physical or a mental health problem but the Minister did not make a determination before that date in respect of an application for an earnings loss benefit made by the veteran under subsection 18(1) of the former Act in respect of that health problem, then the Minister shall make the determination in respect of the application for the earnings loss benefit under that subsection.

• Marginal note:Approved applications — payment of benefit

  (2) If the Minister approves the application, the Minister shall pay to the veteran, under section 18 of the former Act, the earnings loss benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 18(2) of that Act and ending on March 31, 2019.

Marginal note:Review

• 102 (1) If, before April 1, 2019, the Minister made a determination to deny an application for an earnings loss benefit made by a veteran under subsection 18(1) of the former Act but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the benefit in respect of a physical or a mental health problem, then the veteran is deemed, on the day of the final determination, to be entitled to an income replacement benefit under section 18 of the new Act in respect of that health problem and the following rules apply in respect of the veteran:

  • (a) for the purposes of subsection 18(2) of the new Act, the veteran is deemed, on the day of the final determination, to be informed of their entitlement to the income replacement benefit;

  • (b) despite subsection 18(3) of the new Act, the benefit begins to be payable to the veteran on the first day of the month in which the final determination is made;

  • (c) the physical or mental health problem in respect of which the veteran is deemed to be entitled to the benefit is deemed to be the physical or mental health problem referred to in subsection 18(5) or (7) of the new Act; and

  • (d) the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is to be determined under subsection 19(1) or 19.1(1) of that Act, subject to subsection (2).

• Marginal note:Limitation — career progression factor

  (2) If the physical or mental health problem in respect of which the veteran is deemed to be entitled to the income replacement benefit under subsection (1) did not result primarily from service in the Canadian Forces and an increase to the career impact allowance was not payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, then the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is determined under subsection 19(1) of that Act without any periodic adjustment in accordance with a career progression factor.

• Marginal note:Non-application of subsection (1)

  (3) Subsection (1) does not apply to a veteran if the final determination referred to in that subsection is made after the day on which the veteran attains the age of 65 years.

Marginal note:Review — diminished earning capacity

103 If, on a given day before April 1, 2019, the Minister made a determination that a veteran did not have a diminished earning capacity that was due to a physical or a mental health problem in respect of which the veteran was entitled to an earnings loss benefit under section 18 of the former Act but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, that the veteran has a diminished earning capacity that is due to that problem, then the following rules apply in respect of the veteran:

• (a) the Minister is deemed to have made that final determination on that given day;

• (b) if, before April 1, 2019, the veteran was no longer entitled to the earnings loss benefit in respect of that problem, then

  • (i) the veteran is deemed, on the day on which the veteran was no longer entitled to the benefit, to be entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act,

  • (ii) the Minister shall pay to the veteran, under section 18 of the former Act, the earnings loss benefit that they are entitled to, but only for the period beginning on the day referred to in subparagraph (i) and ending on the earlier of March 31, 2019 and the day on which the veteran attains the age of 65 years, and

  • (iii) if the veteran attained the age of 65 years in the period beginning on the day referred to in subparagraph (i) and ending on March 30, 2019, the veteran is deemed to have made an application for a retirement income security benefit under subsection 40.1(1) of the former Act on the day on which they attained the age of 65 years; and

• (c) if a career impact allowance was payable to the veteran under subsection 38(1) of the former Act on March 31, 2019 and the Minister, before April 1, 2019, made a determination to deny the veteran’s application for an increase to the career impact allowance made under subsection 38(3) of this Act as it read at any time before that date and if the Minister’s determination is not the subject of a review under section 83 on March 31, 2019 and the veteran did not, before April 1, 2019, make a new application for an increase to the career impact allowance under that subsection 38(3), then the veteran is deemed to have made an application for an increase to the career impact allowance under subsection 38(3) of the former Act on March 31, 2019.

Marginal note:Members — determination deemed not to have been made

104 If, before April 1, 2019, the Minister made a determination in respect of an application for an earnings loss benefit made by a member under subsection 18(1) of the former Act and the member was not released from the Canadian Forces before March 31, 2019, then the application and the determination are deemed not to have been made.

Marginal note:Members — pending applications

105 If, before April 1, 2019, a member made an application for an earnings loss benefit under subsection 18(1) of the former Act but the Minister did not make a determination in respect of the application before that date and the member was not released from the Canadian Forces before March 31, 2019, then the application is deemed not to have been made.

Survivors and Orphans

Marginal note:Survivors’ and orphans’ deemed entitlement to income replacement benefit

• 106 (1) A survivor or an orphan to whom an earnings loss benefit was payable on March 31, 2019 under section 22 of the former Act is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 22 of the new Act and the following rules apply in respect of the survivor or orphan:

  • (a) despite subsection 22(2) of the new Act, the income replacement benefit begins to be payable to the survivor or orphan on April 1, 2019; and

  • (b) the monthly amount of the income replacement benefit that is payable to the survivor or orphan under section 22 of the new Act is determined under section 23 of that Act, subject to subsections (2) to (7).

• Marginal note:Survivors — protected amount for month referred to in paragraph 23(1)(a)

  (2) If the amount of the income replacement benefit that is payable to a survivor under section 22 of the new Act for a month referred to in paragraph 23(1)(a) of that Act and that is determined under section 23 of that Act — not taking into account any reduction under subsection 23(3) of that Act — is less than the amount of the earnings loss benefit that was payable to the survivor under section 22 of the former Act for the month of March 2019 and that was determined under section 23 of that Act — not taking into account any reduction under subsection 23(3) of that Act — then the former amount is to be replaced by the latter amount.

• Marginal note:Survivors — protected amount for month referred to in paragraph 23(1)(b)

  (3) If the amount of the income replacement benefit that is payable to a survivor under section 22 of the new Act for a month referred to in paragraph 23(1)(b) of that Act and that is determined under section 23 of that Act — not taking into account any reduction under subsection 23(3) of that Act — is less than the amount determined by the following formula, then the former amount is to be replaced by the latter amount:

  A × B

  where

  A

  is 70%; and

  B

  is 70% of the amount of the earnings loss benefit that was payable to the survivor under section 22 of the former Act for the month of March 2019 and that was determined under section 23 of that Act, not taking into account any reduction under subsection 23(3) of that Act.

• Marginal note:Non-application of subsections (2) and (3)

  (4) Subsections (2) and (3) cease to apply to a survivor on the first day of the month after the month in which the facts that were used to determine the percentage of the income replacement benefit payable to them in accordance with subsection 23(2) of the new Act are different from those used to determine the percentage of the earnings loss benefit that was payable to them in accordance with subsection 23(2) of the former Act for the month of March 2019.

• Marginal note:Protected amount — orphans

  (5) If the amount of the income replacement benefit that is payable to an orphan under section 22 of the new Act for a month referred to in paragraph 23(1)(a) of that Act and that is determined under section 23 of that Act is less than the amount of the earnings loss benefit that was payable to the orphan under section 22 of the former Act for the month of March 2019 and that was determined under section 23 of that Act, then the former amount is to be replaced by the latter amount.

• Marginal note:Non-application of subsection (5)

  (6) Subsection (5) ceases to apply to an orphan on the first day of the month after the month in which the facts that were used to determine the percentage of the income replacement benefit payable to them in accordance with subsection 23(2) of the new Act are different from those used to determine the percentage of the earnings loss benefit that was payable to them in accordance with subsection 23(2) of the former Act for the month of March 2019.

• Marginal note:Indexation

  (7) For the purposes of subsections (2) and (5), the amount of the earnings loss benefit referred to in those subsections, and for the purposes of subsection (3), the amount determined by the formula set out in that subsection, is to be indexed until the time the income replacement benefit is payable.

Marginal note:Pending applications

• 107 (1) If, before April 1, 2019, a survivor or an orphan made an application for an earnings loss benefit under subsection 22(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

• Marginal note:Approved applications — payment of benefit

  (2) If the Minister approves the application, the Minister shall pay to the survivor or orphan, under section 22 of the former Act, the earnings loss benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 22(2) of that Act and ending on March 31, 2019.

• Marginal note:Deemed application for retirement income security benefit

  (3) If the earnings loss benefit that is paid to a survivor referred to in subsection (2) ceases to be payable before March 31, 2019, the survivor is deemed to have made an application for a retirement income security benefit under subsection 40.4(1) of the former Act on the day on which the member or veteran, if alive, would have attained the age of 65 years.

Marginal note:Review

• 108 (1) If, before April 1, 2019, the Minister made a determination to deny an application for an earnings loss benefit made by a survivor or an orphan under subsection 22(1) of the former Act but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the benefit, then,

  • (a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date; and

  • (b) the Minister shall pay to the survivor or orphan, under section 22 of the former Act, the earnings loss benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 22(2) of that Act and ending on March 31, 2019.

• Marginal note:Deemed application for retirement income security benefit

  (2) If the earnings loss benefit that is paid to a survivor referred to in paragraph (1)(b) ceases to be payable before March 31, 2019, the survivor is deemed to have made an application for a retirement income security benefit under subsection 40.4(1) of the former Act on the day on which the member or veteran, if alive, would have attained the age of 65 years.

Career Impact Allowance

Marginal note:Amount paid — veterans who received increase

• 109 (1) If an increase to the career impact allowance was payable to a veteran, under subsection 38(3) of the former Act, on March 31, 2019 but neither an earnings loss benefit under section 18 of the former Act nor a retirement income security benefit under section 40.1 or 40.2 of that Act was payable to the veteran on March 31, 2019, then the Minister shall pay to the veteran, for every month for which the income replacement benefit is not payable to the veteran under section 18 of the new Act and that is included in the period beginning with the month of April 2019 and ending with the month in which the veteran dies, an amount equal to,

  • (a) if the increase was payable for the whole month of March 2019, the amount of the increase that the veteran received for that month, indexed until the time the amount is payable under this subsection; or

  • (b) if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under subsection 38(3) of the former Act for that month if the increase had been payable for the whole month, indexed until the time the amount is payable under this subsection.

• Marginal note:Non-application of subsection (1)

  (2) Subsection (1) does not apply if the Minister determines that the veteran’s eligibility for an amount that is payable under that subsection is based on a misrepresentation or the concealment of a material fact. The determination is deemed to be made under Part 2.

• Marginal note:Minimum amount of income replacement benefit

  (3) If a veteran received an amount under subsection (1) for a given month and if, for any month after that month, the income replacement benefit is payable to the veteran under section 18 of the new Act, then the monthly amount of the income replacement benefit that is payable to the veteran is not, despite subsections 19(1) and 19.1(1) of the new Act, to be less than,

  • (a) if the increase to the career impact allowance that the veteran received under subsection 38(3) of the former Act for the month of March 2019 was payable for the whole month, the amount of the increase that the veteran received for that month, indexed until the time the benefit is payable; or

  • (b) if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under subsection 38(3) of the former Act for that month if the increase had been payable for the whole month, indexed until the time the benefit is payable.

• Marginal note:Amount deemed to be compensation

  (4) An amount paid or payable under subsection (1) is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

• Marginal note:Application of subsection 88(4)

  (5) Subsection 88(4) applies to an amount paid under subsection (1).

Marginal note:Pending applications

• 110 (1) If, before April 1, 2019, a veteran made an application for a career impact allowance under subsection 38(1) of this Act as it read at any time before April 1, 2019 but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under subsection 38(1) of the former Act. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

• Marginal note:Approved applications — payment of allowance

  (2) If the Minister approves the application, the Minister shall

  • (a) determine, under subsection 38(2) of the former Act, the amount of the career impact allowance that is payable to the veteran in a year; and

  • (b) pay to the veteran, under section 38 of the former Act, the career impact allowance that they are entitled to, but only for the period beginning on the day on which the allowance begins to be payable under section 39 of that Act and ending on March 31, 2019.

• Marginal note:Pending applications for increase

  (3) If, before April 1, 2019, a veteran made an application for an increase to the career impact allowance under subsection 38(3) of this Act as it read at any time before April 1, 2019 but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under subsection 38(3) of the former Act. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

• Marginal note:Approved applications — payment of increase

  (4) If the Minister approves the application, the Minister shall increase the career impact allowance that is payable to the veteran under section 38 of the former Act by the amount set out in item 2.1, column 2, of Schedule 2 to the former Act, but only for the period beginning on the day on which the increase begins to be payable under section 39 of that Act and ending on March 31, 2019.

Marginal note:Review respecting applications for allowance

• 111 (1) If, before April 1, 2019, the Minister made a determination to deny an application for a career impact allowance made by a veteran under subsection 38(1) of this Act as it read at any time before that date but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the allowance, then,

  • (a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date;

  • (b) the Minister shall determine, under subsection 38(2) of the former Act, the amount of the career impact allowance that is payable to the veteran in a year; and

  • (c) the Minister shall pay to the veteran under section 38 of the former Act the career impact allowance that they are entitled to, but only for the period beginning on the day on which the allowance begins to be payable under section 39 of that Act and ending on March 31, 2019.

• Marginal note:Review respecting applications for increase

  (2) If, before April 1, 2019, the Minister made a determination to deny an application for an increase to the career impact allowance made by a veteran under subsection 38(3) of this Act as it read at any time before that date but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the increase, then,

  • (a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date; and

  • (b) the Minister shall increase the career impact allowance that is payable to the veteran under section 38 of the former Act by the amount set out in item 2.1, column 2, of Schedule 2 to that Act, but only for the period beginning on the day on which the increase begins to be payable under section 39 of that Act and ending on March 31, 2019.

Marginal note:Review respecting amount of allowance

112 If, after approving an application made by a veteran for a career impact allowance under subsection 38(1) of this Act as it read at any time before April 1, 2019, the Minister determined, under subsection 38(2) of this Act as it read at any time before April 1, 2019, the amount of the career impact allowance that may be paid to the veteran in a year but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to increase the amount of the allowance that may be paid, then,

• (a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date; and

• (b) the Minister shall increase the career impact allowance that may be paid to the veteran under section 38 of the former Act, by an amount that is the difference between the amount of the allowance set out in the final determination and the amount of the allowance that was initially determined, but only for the period beginning on the latest of the following days and ending on March 31, 2019:

  • (i) the day on which the application for the allowance was made under that subsection 38(1),

  • (ii) the day that is one year before the day on which the final determination is made, and

  • (iii) the day after the day on which the veteran was released from the Canadian Forces.

Marginal note:Members — determination under subsection 38(1) of former Act

• 113 (1) If, before April 1, 2019, the Minister made a determination in respect of an application for a career impact allowance made by a member under subsection 38(1) of this Act as it read at any time before April 1, 2019 and the member was not released from the Canadian Forces before March 31, 2019, then

  • (a) if the determination was to approve the application,

    • (i) the application and the Minister’s determination are deemed not to have been made, and

    • (ii) the member is deemed to have made an application for additional pain and suffering compensation under subsection 56.6(1) of the new Act on April 1, 2019; and

  • (b) if the determination was to deny the application, the application and the Minister’s determination are deemed not to have been made.

• Marginal note:Members — determination under subsection 38(3) of former Act

  (2) If, before April 1, 2019, the Minister made a determination in respect of an application for an increase to the career impact allowance made by a member under subsection 38(3) of this Act as it read at any time before April 1, 2019 and the member was not released from the Canadian Forces before March 31, 2019, then the application and the Minister’s determination are deemed not to have been made.

Marginal note:Members — pending applications for allowance

• 114 (1) If, before April 1, 2019, a member made an application for a career impact allowance under subsection 38(1) of this Act as it read at any time before April 1, 2019 but the Minister did not make a determination in respect of the application before that date and the member was not released from the Canadian Forces before March 31, 2019, then the application is deemed not to have been made and the member is deemed to have made an application for additional pain and suffering compensation under subsection 56.6(1) of the new Act on April 1, 2019.

• Marginal note:Members — pending applications for increase

  (2) If, before April 1, 2019, a member made an application for an increase to the career impact allowance under subsection 38(3) of this Act as it read at any time before April 1, 2019 but the Minister did not make a determination in respect of the application before that date and the member was not released from the Canadian Forces before March 31, 2019, then the application is deemed not to have been made.

Retirement Income Security Benefit

Veterans

Marginal note:Veterans’ deemed entitlement to income replacement benefit

• 115 (1) A veteran to whom a retirement income security benefit was payable on March 31, 2019 under section 40.1 or 40.2 of the former Act is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 18 of the new Act and the following rules apply in respect of the veteran:

  • (a) despite subsection 18(3) of the new Act, the income replacement benefit begins to be payable to the veteran on April 1, 2019;

  • (b) the veteran is deemed, on April 1, 2019, to be entitled to continue to receive the income replacement benefit under subsection 18(7) of the new Act; and

  • (c) the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is to be determined under subsection 19.1(1) of that Act, subject to subsections (2) to (4).

• Marginal note:Amount determined for A in subsection 19.1(1)

  (2) The amount determined for A in subsection 19.1(1) of the new Act is 70% of the income replacement benefit that the veteran would have been entitled to for the month of March 2019 if the benefit had been payable to the veteran for that month, if the veteran had attained the age of 65 years in that month and if any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) had not been taken into account.

• Marginal note:Protected amount

  (3) If, in determining the amount of the income replacement benefit that is payable to the veteran for a given month, the amount determined for A in subsection 19.1(1) of the new Act, indexed until the time the benefit is payable, is less than the sum of the following amounts, indexed until the time the benefit is payable, then the amount determined for A is to be replaced by that sum:

  • (a) the amount determined for A in subsection 40.1(4) or 40.2(4) of the former Act, as the case may be, that was used to calculate the retirement income security benefit payable to the veteran under subsection 40.1(1) or 40.2(1) of that Act, as the case may be, for the month of March 2019, and

  • (b) if an increase to the career impact allowance was payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, 70% of the amount of the increase that the veteran received for the month of March 2019 or, if the increase was payable only for a portion of that month, 70% of the amount of the increase that the veteran would have received under that subsection for that month if the increase had been payable for the whole month.

• Marginal note:Minimum amount of benefit

  (4) Despite subsection (2), if an increase to the career impact allowance was payable to the veteran, under subsection 38(3) of the former Act, on March 31, 2019, then the monthly amount of the income replacement benefit that is payable to the veteran under section 18 of the new Act is not to be less than,

  • (a) if the increase was payable for the whole month of March 2019, the amount of the increase that the veteran received for that month, indexed until the time the benefit is payable; or

  • (b) if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under subsection 38(3) of the former Act for that month if the increase had been payable for the whole month, indexed until the time the benefit is payable.

• Marginal note:Amount paid

  (5) If an increase to the career impact allowance was payable to a veteran referred to in subsection (1), under subsection 38(3) of the former Act, on March 31, 2019, then the Minister shall pay to the veteran, for every month for which the income replacement benefit is not payable to the veteran and that is included in the period beginning with the month of April 2019 and ending with the month in which the veteran dies, an amount equal to,

  • (a) if the increase was payable for the whole month of March 2019, the amount of the increase that the veteran received for that month, indexed until the time the amount is payable under this subsection; or

  • (b) if the increase was payable only for a portion of that month, the amount of the increase that the veteran would have received under subsection 38(3) of the former Act for that month if the increase had been payable for the whole month, indexed until the time the amount is payable under this subsection.

• Marginal note:Non-application of subsection (5)

  (6) Subsection (5) does not apply if the Minister determines that the veteran’s eligibility for an amount that is payable under that subsection is based on a misrepresentation or the concealment of a material fact. The determination is deemed to be made under Part 2.

• Marginal note:Amount deemed to be compensation

  (7) An amount paid or payable under subsection (5) is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

• Marginal note:Application of subsection 88(4)

  (8) Subsection 88(4) applies to an amount paid under subsection (5).

Marginal note:Pending applications — subsection 40.1(1) of former Act

• 116 (1) If, before April 1, 2019, a veteran made an application for a retirement income security benefit under subsection 40.1(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

• Marginal note:Approved applications — payment of benefit

  (2) If the Minister approves the application, the Minister shall pay to the veteran under section 40.1 of the former Act the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.1(2) of that Act and ending on March 31, 2019.

Marginal note:Pending applications — subsection 40.2(1) of former Act

• 117 (1) If, before April 1, 2019, a veteran made an application for a retirement income security benefit under subsection 40.2(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

• Marginal note:Approved applications — payment of benefit

  (2) If the Minister approves the application, the Minister shall pay to the veteran, under section 40.2 of the former Act, the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.2(2) of that Act and ending on March 31, 2019.

Survivors

Marginal note:Survivors’ deemed entitlement to income replacement benefit (section 40.3 of former Act)

• 118 (1) A survivor to whom a retirement income security benefit was payable on March 31, 2019 under section 40.3 of the former Act is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 26 of the new Act and the following rules apply in respect of the survivor:

  • (a) despite subsection 26(2) of the new Act, the income replacement benefit begins to be payable to the survivor on April 1, 2019;

  • (b) the monthly amount of the income replacement benefit that is payable to the survivor under section 26 of the new Act is determined under section 26.1 of that Act, subject to subsections (2) and (3); and

  • (c) subsection 26.1(2) of the new Act does not apply.

• Marginal note:Amount determined in accordance with paragraph 26.1(1)(a)

  (2) The monthly amount of the income replacement benefit that is payable under section 26 of the new Act and that is determined under paragraph 26.1(1)(a) of that Act is to be determined by the formula

  A × B

  where

  A

  is 70%; and

  B

  is 70% of the income replacement benefit that the veteran would have been entitled to for the month of March 2019 if the benefit had been payable to the veteran for that month, if the veteran had attained the age of 65 years in that month and if any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) had not been taken into account.

• Marginal note:Protected amount

  (3) If the amount of the income replacement benefit that is payable to a survivor under section 26 of the new Act for a given month and that is determined under section 26.1 of that Act — not taking into account any reduction under subsection 26.1(3) of that Act — is less than the amount determined for A in subsection 40.3(4) of the former Act that was used to calculate the retirement income security benefit that was payable to the survivor under section 40.3 of that Act for the month of March 2019, then the former amount is to be replaced by the latter amount.

• Marginal note:Indexation

  (4) For the purposes of subsection (3), the amount of the income replacement benefit referred to in that subsection and the amount determined for A referred to in that subsection are to be indexed until the time the income replacement benefit is payable.

Marginal note:Survivors’ deemed entitlement to income replacement benefit (section 40.4 of former Act)

• 119 (1) A survivor to whom a retirement income security benefit was payable on March 31, 2019 under section 40.4 of the former Act is deemed, on April 1, 2019, to be entitled to an income replacement benefit under section 22 of the new Act and the following rules apply in respect of the survivor:

  • (a) despite subsection 22(2) of the new Act, the income replacement benefit begins to be payable to the survivor on April 1, 2019;

  • (b) the monthly amount of the income replacement benefit that is payable to the survivor under section 22 of the new Act is determined under section 23 of that Act, subject to subsection (2); and

  • (c) subsection 23(2) of the new Act does not apply.

• Marginal note:Protected amount

  (2) If the amount of the income replacement benefit that is payable to a survivor under section 22 of the new Act for a month referred to in paragraph 23(1)(b) of that Act and that is determined under section 23 of that Act — not taking into account any reduction under subsection 23(3) of that Act — is less than the amount that is one half of the amount determined for A in subsection 40.4(4) of the former Act that was used to calculate the retirement income security benefit that was payable to the survivor under section 40.4 of that Act for the month of March 2019, then the former amount is to be replaced by the latter amount.

• Marginal note:Indexation

  (3) For the purposes of subsection (2), the amount, referred to in that subsection, that is one half of the amount determined for A is to be indexed until the time the income replacement benefit is payable.

Marginal note:Pending applications — subsection 40.3(1) of former Act

• 120 (1) Subject to subsection (3), if, before April 1, 2019, a survivor made an application for a retirement income security benefit under subsection 40.3(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

• Marginal note:Approved applications — payment of benefit

  (2) If the Minister approves the application, the Minister shall pay to the survivor, under section 40.3 of the former Act, the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.3(2) of that Act and ending on March 31, 2019.

• Marginal note:Veteran died in March 2019

  (3) If the veteran in respect of whom a survivor made an application referred to in subsection (1) died in the month of March 2019, the survivor is deemed not to have made that application.

Marginal note:Pending applications — subsection 40.4(1) of former Act

• 121 (1) If, before April 1, 2019, a survivor made an application for a retirement income security benefit under subsection 40.4(1) of the former Act but the Minister did not make a determination in respect of the application before that date, then the Minister shall make the determination in respect of the application under that subsection. If the determination is made after March 31, 2020, it is deemed to have been made on that date.

• Marginal note:Approved applications — payment of benefit

  (2) If the Minister approves the application, the Minister shall pay to the survivor, under section 40.4 of the former Act, the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.4(2) of that Act and ending on March 31, 2019.

Marginal note:Review

122 If, before April 1, 2019, the Minister made a determination to deny an application for a retirement income security benefit made by a survivor under subsection 40.3(1) of the former Act but, as a result of a review of the determination under section 83, the Minister makes a final determination, on or after April 1, 2019, to approve the application for the benefit, then,

• (a) if the final determination is made after March 31, 2020, it is deemed to have been made on that date; and

• (b) the Minister shall pay to the survivor, under section 40.3 of the former Act, the retirement income security benefit that they are entitled to, but only for the period beginning on the day on which the benefit begins to be payable under subsection 40.3(2) of that Act and ending on March 31, 2019.

Marginal note:No application — subsection 40.3(1) of former Act

123 If a veteran who died before April 1, 2019 was eligible, or would have been eligible had the veteran applied, for a retirement income security benefit under section 40.1 or 40.2 of the former Act at the time of their death and the veteran’s survivor did not make an application for a retirement income security benefit under subsection 40.3(1) of the former Act before April 1, 2019, the following rules apply to the survivor:

• (a) if the veteran died before March 1, 2019, the survivor is deemed to have made an application for a retirement income support benefit under subsection 40.3(1) of the former Act on March 31, 2019; and

• (b) if the veteran died in the month of March 2019,

  • (i) the survivor is deemed to have made an application for an income replacement benefit under subsection 26(1) of the new Act on April 1, 2019,

  • (ii) for the purpose of that application, the veteran is deemed to have been entitled to the income replacement benefit at the time of their death, and

  • (iii) if the Minister approves the application, then

    • (A) the day referred to in paragraph 26(2)(a) of the new Act is April 1, 2019,

    • (B) the monthly amount of the income replacement benefit that is payable to the survivor under section 26 of the new Act is determined under section 26.1 of that Act, subject to subsection 118(2), and

    • (C) subsection 26.1(2) of the new Act does not apply.

Supplementary Retirement Benefit

Marginal note:Amount paid — veterans

• 124 (1) The Minister shall pay the amount determined in accordance with subsection (2) to

  • (a) a veteran who was at any time entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act but who, on March 31, 2019, was no longer entitled to that benefit, if that veteran has not received the supplementary retirement benefit to which they are entitled under subsection 25(1) of that Act before April 1, 2019; or

  • (b) a veteran who, on March 31, 2019, was entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act.

• Marginal note:Calculation of amount

  (2) The amount payable to the veteran under subsection (1) is an amount equal to 2% of the total amount of the earnings loss benefit that would have been payable to the veteran under section 18 of the former Act until March 31, 2019, had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) of that Act not been taken into account.

• Marginal note:Reduction

  (3) The amount payable to the veteran is to be reduced by any amount of the supplementary retirement benefit that the veteran received before April 1, 2019.

Marginal note:Amount paid — survivors under subsection 25(2) of former Act

• 125 (1) The Minister shall pay the amount determined in accordance with subsection (2) to a survivor who

  • (a) is the survivor of a veteran who, at the time of their death, was entitled to continue to receive the earnings loss benefit under subsection 18(4) of the former Act;

  • (b) was not eligible to receive an earnings loss benefit under section 22 of the former Act on March 31, 2019; and

  • (c) has not received a supplementary retirement benefit under subsection 25(2) of the former Act before April 1, 2019.

• Marginal note:Calculation of amount

  (2) The amount payable to the survivor under subsection (1) is an amount equal to 2% of the total amount of the earnings loss benefit that would have been payable to the veteran under section 18 of the former Act until their death, had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) of that Act not been taken into account.

Marginal note:Amount paid — survivors under subsection 25(3) of former Act

• 126 (1) The Minister shall pay the amount determined in accordance with subsection (2) to

  • (a) a survivor who was at any time entitled to the earnings loss benefit under section 22 of the former Act but who, on March 31, 2019, was no longer entitled to that benefit, if that survivor has not received a supplementary retirement benefit under subsection 25(3) of that Act before April 1, 2019; or

  • (b) a survivor who, on March 31, 2019, was entitled to the earnings loss benefit under section 22 of the former Act.

• Marginal note:Calculation of amount

  (2) The amount payable to the survivor under subsection (1) is an amount equal to,

  • (a) in the case of a member’s survivor, 2% of the total amount of the earnings loss benefit that would have been payable to the survivor under section 22 of the former Act until March 31, 2019, had any amounts that were payable to the survivor from prescribed sources referred to in subsection 23(3) of that Act not been taken into account; or

  • (b) in the case of a veteran’s survivor, 2% of the sum of the following amounts:

    • (i) the total amount of the earnings loss benefit that would have been payable to the veteran under section 18 of the former Act until their death, had any amounts that were payable to the veteran from prescribed sources referred to in subsection 19(1) of that Act not been taken into account, and

    • (ii) the total amount of the earnings loss benefit that would have been payable to the survivor under subsection 22 of the former Act until March 31, 2019, had any amounts that were payable to the survivor from prescribed sources referred to in subsection 23(3) of that Act not been taken into account.

Marginal note:Lump sum

127 An amount that is to be paid under any of sections 124 to 126 is to be paid as a lump sum.

Marginal note:Power to require information or document

128 The Minister may, for the purposes of establishing a person’s entitlement to an amount under any of sections 124 to 126, require that person to provide the Minister with any information or document specified by the Minister.

Marginal note:Deeming

129 An amount paid or payable under any of sections 124 to 126 is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

Transitional Provisions Relating to Pain and Suffering Compensation

Marginal note:Definition of former Act

130 In sections 131 and 132, former Act means this Act as it read immediately before April 1, 2019.

Marginal note:Member or veteran who made election

• 131 (1) Section 52.1 of the former Act applies to a member or a veteran who, before April 1, 2019, made the election referred to in paragraph 52.1(1)(b) or (c) of that Act and who, on March 31, 2019, was still entitled to receive payments in accordance with that section 52.1.

• Marginal note:Member or veteran entitled to make election

  (2) If a member or a veteran to whom a disability award is to be paid under section 45, 47 or 48 of the former Act has not, before April 1, 2019, made the election referred to in subsection 52.1(1) of that Act and the prescribed time for making that election has not expired before that date, then the member or veteran may make the election under that subsection. If the member or veteran makes the election referred to in paragraph 52.1(1)(b) or (c) of that Act, section 52.1 of that Act applies to the member or veteran.

• Marginal note:Payment

  (3) The Minister may pay to the member or veteran the disability award for which the member or veteran made the election.

• Marginal note:Non-application of section 90

  (4) Section 90 does not apply in respect of the disability award paid under subsection (3) to a member or a veteran who made the election referred to in paragraph 52.1(1)(b) or (c) of the former Act.

• Marginal note:Regulations

  (5) The Governor in Council may make regulations

  • (a) respecting the determination of an amount of interest for the purposes of the description of C in paragraph 52.1(1)(b) of the former Act;

  • (b) respecting the determination of lump sums for the purpose of subsections 52.1(5) and (6) of that Act; and

  • (c) prescribing any matter required or authorized by section 52.1 of that Act to be prescribed.

Marginal note:Monthly amount paid

• 132 (1) For every month that is included in the period beginning with the month of April 2019 and ending with the month in which the member or veteran dies, the Minister shall pay to a member or a veteran who was paid a disability award, and who is alive on April 1, 2019, the amount determined by the formula

  A – [(B – C)/D]

  where

  A

  is the amount set out in column 3 of Schedule 3 to this Act, as it read on April 1, 2019, that corresponds to the member’s or veteran’s extent of disability, as set out in column 2 of that Schedule, for which the disability award was paid;

  B

  is an amount equal to the sum of the following amounts:

  • (a) the amount of the disability award that was payable to the member or veteran under subsection 52(1) of the former Act or, in the case of a member or a veteran who made the election referred to in paragraph 52.1(1)(b) or (c) of the former Act, the amount of the disability award that would have been payable to the member or veteran if the member or veteran had made the election referred to in paragraph 52.1(1)(a) of the former Act, and

  • (b) the amount paid to the member or veteran under section 100 of the Budget Implementation Act, 2016, No. 1 in respect of the disability award;

  C

  is an amount equal to the product obtained by multiplying the amount determined in accordance with paragraph (a) by the number determined in accordance with paragraph (b):

  • (a) the amount set out in column 3 of Schedule 3 to this Act, as it read on April 1, 2019, that corresponds to the member’s or veteran’s extent of disability, as set out in column 2 of that Schedule, for which the disability award was paid,

  • (b) the number of months included in the period beginning with the month in which the disability award was paid and ending with the month of March 2019;

  D

  is a number determined in accordance with the regulations.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations respecting the determination of the number referred to in the description of D in subsection (1).

• Marginal note:Periodic adjustment

  (3) The amount determined in accordance with subsection (1) is to be periodically adjusted in the same manner as the amounts set out in column 3 of Schedule 3.

• Marginal note:Member or veteran in receipt of annual payments

  (4) The following rules apply to a member or a veteran to whom an amount is to be paid under subsection (1) in respect of a disability award:

  • (a) a member or a veteran who made an election referred to in paragraph 52.1(1)(b) or (c) of the former Act before April 1, 2019 in respect of the disability award and who, on March 31, 2019, was still entitled to receive payments in accordance with section 52.1 of the former Act is deemed to have made an election under subsection 52.1(5) of the former Act on April 1, 2019; and

  • (b) a member or a veteran referred to in subsection 131(2) is, despite that subsection, deemed to have made the election referred to in paragraph 52.1(1)(a) of the former Act.

• Marginal note:Power to require information or document

  (5) The Minister may require a member or a veteran to whom an amount is to be paid under subsection (1) to provide information or documents to the Minister.

• Marginal note:Amount deemed to be compensation

  (6) An amount paid or payable under subsection (1) is deemed to be compensation for the purposes of sections 88 to 90 and subsection 93(1).

• Marginal note:Application of subsection 88(4)

  (7) Subsection 88(4) applies to an amount paid under subsection (1).

Transitional Provisions Relating to Additional Pain and Suffering Compensation

Marginal note:Definitions

• 133 (1) The following definitions apply in this section.

  former Act

  former Act means this Act as it read immediately before April 1, 2019. (ancienne loi)

  new Act

  new Act means this Act as it reads on April 1, 2019. (nouvelle loi)

• Marginal note:Deemed entitlement to additional pain and suffering compensation

  (2) If a career impact allowance was payable to a veteran on March 31, 2019 under section 38 of the former Act, then the veteran is deemed, on April 1, 2019, to be entitled to additional pain and suffering compensation under section 56.6 of the new Act and the following rules apply in respect of the veteran:

  • (a) the physical or mental health problems in respect of which the career impact allowance was payable to the veteran are deemed to be the disabilities in respect of which the veteran is deemed to be entitled to additional pain and suffering compensation;

  • (b) the monthly amount of additional pain and suffering compensation that is payable to the veteran under section 56.6 of the new Act is determined under subsection 56.6(5) of that Act, subject to subsections (3) and (4); and

  • (c) despite subsection 56.6(6) of the new Act, additional pain and suffering compensation begins to be payable to the veteran on April 1, 2019.

• Marginal note:Extent of veteran’s permanent and severe impairment

  (3) The extent of the veteran’s permanent and severe impairment that is used to determine the amount of additional pain and suffering compensation that is payable to the veteran for the month of April 2019 is assessed in accordance with the following rules:

  • (a) a veteran to whom the maximum amount of career impact allowance was payable under section 38 of the former Act on March 31, 2019 — without taking into account the amount of any increase to the career impact allowance referred to in subsection 38(3) of that Act — is assessed as having a Grade 1 extent of permanent and severe impairment as set out in Schedule 4 to the new Act;

  • (b) a veteran to whom the minimum amount of career impact allowance was payable under section 38 of the former Act on March 31, 2019 — without taking into account the amount of any increase to the career impact allowance referred to in subsection 38(3) of that Act — is assessed as having a Grade 3 extent of permanent and severe impairment as set out in Schedule 4 to the new Act; and

  • (c) a veteran who is not referred to in paragraph (a) or (b) is assessed as having a Grade 2 extent of permanent and severe impairment as set out in Schedule 4 to the new Act.

• Marginal note:Protected amount

  (4) For every month after the month of April 2019 for which the veteran is entitled, as a result of subsection (2), to additional pain and suffering compensation under section 56.6 of the new Act, the amount of additional pain and suffering compensation that is payable to the veteran under that section is not to be less than the amount of additional pain and suffering compensation that is payable for the month of April 2019.