Scenario: Age 30, Basic Pay Level for Corporal and Captain with 5 Years of Service
| Benefit | Corporal Regular Force | Captain Regular Force | Corporal Reserve who worked 180 days or less |
Captain Reserve who worked 180 days or less |
|---|---|---|---|---|
| Salary (Annual) |
$56,568 | $74,424 | Paid by the day = $131.74 (equivalent to 85% Regular Force Salary) | Paid by the day = $173.32 (equivalent to 85% Regular Force Salary) |
| Superannuation Survivor Benefit (Annual) |
$2,828 | $3,721 | See Notes | |
| Supplementary Death Benefit (SDB) |
$113,136 | $148,848 | N/A | N/A |
| Reserve Death Gratuity | n/a | n/a | $94,280 | $124,040 |
| VAC Death Benefit | $306,698 | |||
| VAC Annual Earnings Loss Benefit (ELB) |
$42,426 | $55,818 | $24,300 (43% less) | $24,300 (56% less) |
| 35 Years Later $84,852 | 35 Years Later $111,636 | 35 Years Later $24,300 (71% less) |
35 Years Later $24,300 (78% less) |
|
| Optional SISIP Term Insurance | Up to $600K | |||
| Minimum Payment Possible (until age 65) |
$419,834 Lump Sum |
$455,546 Lump Sum |
$400,978 Lump Sum |
$430,738 Lump Sum |
| $3500 Per Month |
$4700 Per Month |
$2000 Per Month (not indexed) |
$2000 Per Month (not indexed) |
|
| VAC Supplementary Retirement Benefit (SRB) | $41,833 | $56,913 | $17,000 (60% less) | $17,000 (70% less) |
| VAC Rehabilitation Program | Yes | Yes | Yes | Yes |
| Educational Assistance | Yes | Yes | Yes | Yes |
| Public Service Health Care Plan | Yes | Yes | Yes | Yes |
Note: All future value calculations used the following formula: Future Amount = PV x (1+i)n where PV= present value, i = interest rate (2%) and n = number of intervals (35 years)
Salary (Annual)
- For VAC benefits all Reservists Class A/B < 180 are deemed to have a salary of $32,400 ($2700 per month)
- 2013 pay rates used for calculations
Superannuation Survivor Benefit (Annual)
- Calculations based on 50% of (years of service x 2%)
- Until the member would have reached age 65, ELB will be offset by these amounts
- Because of the complex variables associated with Reserve pensions, determining a value is difficult; however, the value will not exceed that of Regular Force member
- These calculations use very simplistic formulas for the sole purpose of illustrating the magnitude of the payment likely to be provided. Actual values will be less. Regardless, until age 65 these payments will be used as an ELB offset and thus have no effect on overall outcomes
Supplementary Death Benefit (SDB)
- Twice the Annual Salary
- Only available to Regular Force and Class C Reservists
- SDB Eligibility criteria
CAF Death Gratuity - Reserve Force
VAC Death Benefit
- Split 50/50 between survivor and dependent children
VAC Earnings Loss Benefit (ELB)
- 75% of Salary or 75% of $32,400 for Class A/B Reservist
- Split 60/40 between survivor and dependent children (until age 18 or age 25 while in school)
- Paid until member would have reached age 65 regardless of marital status or income
- Regular Force payments are indexed to cost of living, payments for Reservists who worked 180 days or less are not
- $42,426 is the minimum Salary a Regular Force member or Class C/Class B Reservists who worked more than 180 days can receive
- $24,300 is the only Salary a Class A/Class B Reservists who worked 180 days or less can receive regardless of rank
Optional SISIP Term Insurance
Potential Minimum Outcomes (until age 65)
- These are the minimum benefits that should be available to the member without he or she having exercised any optional insurance.
- Lump sums could be up to $600K higher if optional insurance is chosen
- 35 years of indexing will double Regular Force payments while Reserve payments do not change
VAC Supplementary Retirement Benefit (SRB)
- Lump sum = 2% of total ELB paid when member would have reached age 65. (This example shows effect of 35 years of ELB payments at 2% increase per year)
VAC Rehabilitation Program
- Up to $75,800 and treatment benefits for survivor only
- Survivor must apply within one year
- OVO recommendation to remove one year deadline
Educational Assistance
- $5,370.82 Tuition and fees per year of schooling, per child
- $402.81 monthly allowance while in school, per child
Public Service Health Care Plan
- If not accessible under DND/CF, VAC can administer under NVC
- Survivor required to pay premiums