Pension for Life focusses on one thing—making sure that you and your family have the flexibility to make the best decisions for your specific needs and overall well-being, now and into the future. This new collection of benefits gives you the power.

If you have a service-related disability, Pension for Life offers you the recognition, income support, and stability that you and your family need. Pension for Life is an overall well-being package that combines financial recognition of pain and suffering, income replacement, and a host of wellness services and programs to help Canadian Armed Forces members successfully transition to life after service. 

Get to know the benefits better

The benefits package is made up of the Pain and Suffering Compensation, Additional Pain and Suffering Compensation and Income Replacement Benefit.

Pain and Suffering Compensation – non-taxable

If you experience pain and suffering due to a disability from a service-related illness or injury, you can choose between monthly and lump sum options, giving you the flexibility to decide what works best for you and your family. It is a monthly, lifelong, tax-free payment.

Additional Pain and Suffering Compensation – non-taxable

If you are encountering barriers to transitioning to life after service because of a severe and permanent service-related illness or injury, this monthly, lifelong, tax-free benefit can help. Depending on the extent of the impairment resulting from a service-related disability, the monthly payment would be $500, $1,000 or $1,500. 

Income Replacement Benefit – taxable

The monthly benefit is designed to provide income support and recognize lost career progression for those who require financial assistance during their transition to life after service. The benefit is available to veterans and their families, for life, should they need it.

The Income Replacement Benefit combines multiple pre-existing benefits—Earnings Loss Benefit, Extended Earnings Loss Benefit, Supplementary Retirement Benefit, and Retirement Income Security Benefit, Career Impact Allowance and Career Impact Allowance Supplement—into one, simpler benefit. 

The Income Replacement Benefit provides 90 percent of pre-release salary (i.e., an additional 15 percent top-up for those receiving CAF Long Term Disability (LTD) income support), indexed annually with no cap. You may earn up to $20,000 in employment earnings per year before any reductions would be made to your Income Replacement Benefit.

Pension for Life will come into effect on April 1, 2019. You can apply online through My VAC account. 

For more information:

Call VAC toll-free at 1-866-522-2122 during local business hours.

Visit a local VAC area office or visit the VAC webpage. 

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