Service-related Death Benefit Comparison - Reservists and Regular Force Members

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)

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)

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