Actuarial Analysis - Follow up Report

(does not include budget 2017)

Actuarial Analysis - Follow up Report - Infographic
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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
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