Pension Act Stabilization Clause (courtesy of the Airborne Brotherhood)
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(Extract of info provided by John M)In order not confuse members on pension benefits prior to and after the age 55 I proved the following. There is a present day policy in VAC (Veterans Affairs Canada) that states when an individual has been in receipt of their pension for a period of three years and they have attained the age of 55 years, that, that pension is deemed to be stabilized and the amount will not be subjected to reductions.
First, let us assume that we have a young Veteran of 35 years of age who has received a 15% pension for a bad right knee with Osteoarthritis. Now this member is talking with his buddies and learns that one of them who he feels has a knee less severe than his is getting a 20% pension. With this in mind he applies for a new pension medical with VAC and in doing so the examining doctor feels the members knee is getting better and lowers the pension to 10%, VAC will action this and reduce the amount of monthly pension payable.. This is allowed within the present guidelines. The only recourse the member will have is an appeal of that decision.
However, in another example of this individual with Osteoarthritis of the right knee, let’s say they are pensioned at a rate of 20 %. They have had that amount of money paid to them for three years and they are now over 55. That amount is now stabilized, and cannot be reduced. If this same individual was to have the right knee replaced and in doing so feel their pension should be increased, because of the surgery, they would go to VAC and ask for a new assessment medical. When the medical is conducted the doctor may say, according to their guidelines, that the individual should only be pensioned at 15% vice the 20% they were at. As they meet the criteria for a stabilized pension, this amount will not be reduced and the 20% will be paid, even though the doctor feels 15% is a better assessment.
Now another example, the member is clearly over 55 years of age, lets say 65 years old, they have had the knee replaced and in doing so the operation was not as successful as hoped. It turns out that the knee now provides them less mobility than before and has increased their disability. After a medical the pension is increased to 25%. This amount will be paid as a new assessment. However, this amount is not immediately stabilized. It must be in pay from VAC for a new three year period before the amount is locked in.
Finally, in another scenario, let’s assume the member gets the 25% one year after the knee was replaced. Then the following year they feel their knee is worse again. They go back to VAC for a medical and it is discovered by the doctor that the knee is really better than first imagined when the 25% was awarded. In fact they feel that a disability award of 15% would be a better assessment. VAC cannot lower your pension to 15%, but that can lower it to 20% the amount that was originally stabilized.
I hope this will allow our members to have a clearer understanding of this policy, as it is today. If anyone has any questions please do not hesitate to contact me at home or work jmorrison@legion.ca and I will provide you with a better explanation as per your own situation.
Please note that the original email on this from Harold Leduc, our Nation Veteran Liaison Officer, was to enable individuals who may have been wrongly served by this policy to bring it to his attention. Plus he is addressing other issues. My concern is to ensure everyone fully understand the policy, as it is written today
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