I would agree, but it's difficult for me to comment on what it should be. As I've mentioned, we work with the policy within a very specific framework and this is what we have to live with. This should not be the Government of Canada's policy with respect to those things.
Is it the right construct or not? There are always ways to improve any policies we have, and at any given time we make representations to improve the SISIP policy. One of the latest improvements we have made to this policy was last year. We made the Treasury Board submission and the Government of Canada agreed after to pay 100% of the premium, as opposed to the members, for all conditions attributable to military service. This was quite significant.
Another such improvement we made to the policy was in December 1999, when we made a submission and asked the Treasury Board to approve that anyone who was being released for medical reasons be entitled to SISIP LTD. So they don't have to fight for it. The fact that you're being released for a medical condition means this entitlement is there for up to 24 months. There are no ifs or buts. You're being medically released and you have this entitlement.
You're right. We always look at ways to improve it. I believe you mentioned the CPP, which stems from Bill C-201, and it has nothing to do with SISIP. But you're right that it is an offset when we get to age 65 and the Canadian Forces pension is reduced by this amount. It is essentially the construct of all of the various plans, and more so on an insurance platform. That's the way they're being constructed.
If I can go back to 1969, when SISIP was implemented, it was strictly for life insurance, long-term disabilities, and for conditions not attributable to military service. It meant that anyone who received a monthly Pension Act benefit could not apply for SISIP LTD. So they were out of the process.
Once we realized, between 1969 and 1976, that maybe some of those members were getting a very little pension amount under the Pension Act, a submission was made and was approved to include this group of people as part of the LTD group. The conditions that prevailed at that time was that we agreed that you would include this group, but the amount received as a monthly pension would become an offset. That's how it came about. That group was excluded initially and then they were included.
There is all kinds of historical background with respect to the monthly Pension Act amount and how it came about. First of all, in 1971, those who were serving in special duty areas.... This is not only from Bill C-41 in 2000, when those members could receive their monthly Pension Act amount while serving. There was a group from 1971 onwards who weren't allowed to receive this monthly Pension Act benefit if they had served in the special duty area. In 2000, when Bill C-41 was enacted, it provided this benefit to all other serving members, to all other CF personnel. At that point, anyone who had a condition that was attributable to service, although they were receiving a monthly pension, they could receive their pension while they were serving. We know the consequences of this. There was the 2003 ombudsman's report that said, in light of all of this, it's unfair treatment.
I cannot comment on the fairness of this process, but I can say that the premium structure of the SISIP LTD was based on the fact that there are reductions, like the Pension Act, the CPP, the CFSA, and monthly income. All of those are built actuarially into the pricing structure of the SISIP LTD.
It's a long-winded explanation, but there's lots of background that goes into this.