Government of Canada Accepts Federal Court Decision on Long-Term Disability Benefits for Veterans

OTTAWA, ONTARIO — (Marketwire) — 05/29/12 — The Honourable Peter MacKay, Minister of National Defence, and the Honourable Steven Blaney, Minister of Veterans Affairs, today announced that the Government of Canada will not appeal the Federal Court’s May 1, 2012 decision regarding the offset of Pension Act disability benefits from the Service Income Security Insurance Plan (SISIP).

“The men and women who serve and sacrifice in Canada’s name need to know that their Government will stand behind them and provide the benefits they need when their service is complete,” said Minister MacKay. “I am pleased to announce our government will discontinue the offset for Long Term Disability benefits.”

Since 2006, the Government of Canada has put in place a wide range of programs and benefits to support ill and injured Veterans, military personnel and their families. These complement the Long Term Disability group insurance plan for Canadian Forces (CF) members that is administered under SISIP. This program has done a tremendous amount of good by giving veterans with a long-term disability a benefit equal to 75 per cent of their pre-release salary.

“I am happy to announce that our Government is taking action to harmonize our disability benefits at Veterans Affairs to reflect the planned changes to SISIP,” said Minister Blaney. “With these changes, Veterans Affairs’ disability pension will no longer be deducted from the Earnings Loss Benefit, as will be the case with the War Veterans Allowance and the Canadian Forces Income Support Benefit. This is a very positive change for our men and women injured in service to Canada who will now receive the benefits and services they are entitled to. Our Government will continue to stand up for them the same way they have stood up for our great country.”

The CF Long Term Disability (LTD) Income Replacement program is a disability group insurance plan administered by SISIP Financial Services that provides CF members with replacement income protection and vocational rehabilitation if they are released from the CF for medical reasons or take a voluntary release but qualify as being totally disabled.

“Today’s decision ensures that our Government’s strong record of delivering for our men and women in uniform continues to meet the needs of those who need these benefits,” said Minister MacKay. “The Government acted in support of our members, past and present, because we believe that it is the right thing to do.”

Notes to editor / news director: For more information on the SISIP LTD program, please visit the SISIP web page at, and/or please visit the Department of National Defence Backgrounder at


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Published May 29, 2012
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