Actuarial Analysis - Follow up Report - Infographic
Purpose
This report updates the 2013 Actuarial Analysis by evaluating improvements to the NVC and considers the effects on lifetime compensation for Veterans.
Comparison of 5 TPI Scenarios
| Pension Act | NVC 2013 | NVC 2016 | |
| Caporal, Male, Single, 4 years of service | $3,366,579 | $2,423,171 | $3,310,239 |
| Major, Female, Married, 29 years of service | $3,523,052 | $1,692,124 | $2,292,551 |
| Captain, Male, Married, 10 years of service | $2,732,643 | $2,193,854 | $3,222,261 |
| Sergeant, Male, Married, 15 years of service | $3,299,424 | $1,816,033 | $2,592,688 |
| Corporal, Female, Married, 5 years of service | $1,908,271 | $1,045,654 | $1,736,619 |
Key Findings
- 4 new benefits and 8 enhancements since 2011 were implemented, resulting in additional complexity.
- The increase to the ELB has had the most significant effect.
- The PIA and PIA Supplement contribute significantly to the lifetime compensation for Veterans who are TPI.
- New benefits such as the FCRB, CIB and RISB have a limited impact as few Veterans are eligible for those benefits.
- It is unclear whether the financial needs of Veterans who are not TPI are being met.
- It is unclear whether the financial needs of survivors are being met.
- While the lifetime total may be adequate, there may be times when the annual compensation does not fully meet needs.
Survivor Lifetime Compensation
| Pension Act | NVC 2013 | NVC 2016 | ||||
| Benefit Name | Before Tax | After Tax | Before Tax | After Tax | Before Tax | After Tax |
| SISIP LTD / VAC ELB | 0 | 0 | 790,418 | 646,317 | 1,009,979 | 809,805 |
| PA Disability Pension | 1,123,128 | 1,123,128 | 0 | 0 | 0 | 0 |
| PA Exceptional Incapacity Allowance | 0 | 0 | 0 | 0 | 0 | 0 |
| PA Attendance Allowance | 0 | 0 | 0 | 0 | 0 | 0 |
| NVC Death/Disability Award | 0 | 0 | 310,379 | 310,379 | 360,000 | 360,000 |
| NVC Critical Injury Benefit | 0 | 0 | 0 | 0 | 0 | 0 |
| NVC Permanent Impairment Allowance | 0 | 0 | 0 | 0 | 0 | 0 |
| NVC Permanent Impairment Allowance Supplement | 0 | 0 | 0 | 0 | 0 | 0 |
| NVC Supplementary Retirement Benefit | 0 | 0 | 0 | 0 | 0 | 0 |
| NVC Retirement Income Security Benefit (RISB) | 0 | 0 | 0 | 0 | 0 | 0 |
| NVC Family Caregiver Relief Benefit | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | $1,123,128 | $1,123,128 | $1,100,797 | $956,696 | $1,431,079 | $1,230,906 |
Lifetime vs Annual Compensation
| Member Age | Pension Act | NVC 2013 | NVC 2016 |
| 40 | $63,615 | $196,484 | $204,969 |
| 41 | $63,615 | $41,295 | $49,780 |
| 42 | $63,615 | $41,295 | $49,780 |
| 43 | $63,615 | $41,295 | $49,780 |
| 44 | $63,615 | $41,295 | $49,780 |
| 45 | $63,615 | $41,295 | $49,780 |
| 46 | $63,615 | $41,295 | $49,780 |
| 47 | $63,615 | $41,295 | $49,780 |
| 48 | $63,615 | $41,295 | $49,780 |
| 49 | $63,615 | $41,295 | $49,780 |
| 50 | $63,615 | $41,295 | $49,780 |
| 51 | $63,613 | $41,295 | $49,780 |
| 52 | $63,613 | $41,295 | $49,780 |
| 53 | $63,613 | $41,295 | $49,780 |
| 54 | $63,613 | $41,295 | $49,780 |
| 55 | $63,613 | $41,295 | $49,780 |
| 56 | $63,613 | $41,295 | $49,780 |
| 57 | $63,613 | $41,295 | $49,780 |
| 58 | $63,613 | $41,295 | $49,780 |
| 59 | $63,613 | $41,295 | $49,780 |
| 60 | $63,613 | $41,295 | $49,780 |
| 61 | $63,613 | $41,295 | $49,780 |
| 62 | $63,613 | $41,295 | $49,780 |
| 63 | $63,613 | $41,295 | $49,780 |
| 64 | $63,613 | $41,295 | $49,780 |
| 65 | $20,218 | $26,454 | $63,322 |
| 66 | $20,218 | $0 | $31,433 |
| 67 | $20,218 | $0 | $31,433 |
| 68 | $20,218 | $0 | $31,433 |
| 69 | $20,218 | $0 | $31,433 |
| 70 | $20,218 | $0 | $31,433 |
| 71 | $20,218 | $0 | $31,433 |
| 72 | $20,218 | $0 | $31,433 |
| 73 | $20,218 | $0 | $31,433 |
| 74 | $20,218 | $0 | $31,433 |
| 75 | $20,218 | $0 | $31,433 |
| 76 | $20,218 | $0 | $31,433 |
| 77 | $20,218 | $0 | $31,433 |
| 78 | $20,218 | $0 | $31,433 |
| 79 | $20,218 | $0 | $31,433 |
| 80 | $20,218 | $0 | $31,433 |
| 81 | $20,218 | $0 | $31,433 |
| 82 | $20,218 | $0 | $31,433 |
| 83 | $20,218 | $0 | $31,433 |
| 84 | $20,218 | $0 | $31,433 |
| 85 | $20,218 | $0 | $31,433 |
| 86 | $20,218 | $0 | $31,433 |
| 87 | $20,218 | $0 | $31,433 |
| 88 | $20,218 | $0 | $31,433 |
| 89 | $20,218 | $0 | $31,433 |
| 90 | $20,218 | $0 | $31,433 |
| 91 | $20,218 | $0 | $31,433 |
| 92 | $20,218 | $0 | $31,433 |
| 93 | $20,218 | $0 | $31,433 |
| 94 | $20,218 | $0 | $31,433 |
Recommendations
- Consolidate financial benefits to reduce complexity
- Assess the level of financial support provided to Veterans who are not TPI
- Assess the level of financial support provided to survivors
- Review when financial benefits are being delivered to Veterans and their survivors