Veterans Affairs Committee on Feb. 6th, 2018

[The Chair, Liberal, Neil Ellis]

I call the meeting to order.

Good morning, everybody. I'd like to welcome all of our guests today and all our witnesses who are here testifying as we resume the study of barriers to transition and measurable outcomes of successful transition.

The panel today consists of the Department of Veterans Affairs and the Department of National Defence.

From the Department of Veterans Affairs, we have Elizabeth Douglas, Director General, Service Delivery Program Management, and Susan Baglole, National Manager, Rehabilitation, Career Transition Services, and Income Support. They will focus on the new Veterans Charter transition program, vocational rehabilitation programs, and statistics.

From the Department of National Defence, we have Commodore Sean Cantelon, Director General, Canadian Forces Morale and Welfare Services, Military Personnel Command, and Phil Marcus, Vice-President, Operations and Support Services. They will focus on support services, service income, and security insurance plans, or SISIPs. To respond to questions about SISIPs, we welcome, from Manulife Financial, Kathleen McIlwham, Vice-President for Wellness, Disability, and Life.

Ms. Douglas, you have the floor for five minutes.

[Elizabeth Douglas, Director General, Service Delivery and Program Management, Department of Veterans Affairs]

Thank you.

Good morning, Mr. Chair, Mr. Vice-Chair, members of the committee.

My name is Elizabeth Douglas, Director General for Service Delivery Program Management for Veterans Affairs Canada.

I'm responsible for approximately 200 employees, located primarily in Charlottetown, in the areas of online services, strategic and enabling initiatives, case management and support services, health care programs, income support programs, rehabilitation services, vocational assistance, and long-term care.

I would like to thank you for the invitation to appear before the committee today. Joining me is Susan Baglole, the National Manager of Rehabilitation, Career Transition Services, and Income Support.

I'm also pleased to provide an overview of our rehabilitation services and vocational assistance program. I note that you emphasized the importance of vocational rehabilitation in your “Comparative Study of Services in Other Jurisdictions“ report and concur that workforce reintegration is one of the keys to successful transition. At VAC, the 2016 “Life After Service” study, conducted internally, identified that 52% of our veterans report easy or moderately easy adjustment to civilian life and that veterans who are employed have lower rates of difficulty with transition to civilian life.

Employment can impact health, social integration, and finances. Also, health, social integration, or financial problems can affect the ability to find or retain a job. Research shows clearly that participation in paid employment is beneficial to health. VAC's programs provide an opportunity to close this gap for Canadian Armed Forces personnel in their transition to civilian life. As we will discuss today, there are programs in place that are closing that seam.

Our LASS research shows that overall, veterans do well in the labour market, with 65% employed at the time of our last LASS study in 2016. In addition, 49% of veterans are able to transfer their military skills, knowledge, and abilities to comparable civilian occupations. Also, the unemployment rate for veterans is the same as that of the Canadian general population.

However, veterans are more likely to have activity limitations at work and to face barriers to labour force participation. Some veterans are retired and are not interested in working, while others are at school or pursuing other interests. However, 22% of those not in the labour force reported being on disability.

There are also other subpopulations who may have more difficulty in post-military employment success. These include women, those with fewer years of service, those who are younger, and those who served in the army. While veterans in general are doing well integrating into the civilian workforce, some still need support.

For those who are unable to transition successfully, VAC's rehabilitation services and vocational assistance program provide eligible veterans and their spouses or survivors with medical, psychosocial, and/or vocational services. The intent of the program is to support restoration of functioning in areas such as mental and physical functioning, social adjustment, family relationships, financial security, and employment.

Participants in the rehabilitation program often have complex needs in a number of areas and require medical, psychosocial, and/or vocational services. As of June 30, 2017, 12,245 veterans and 196 spouses or survivors benefited from rehabilitation services.

Vocational professionals work with the veteran to help them transfer skills and education to the civilian labour force. These vocational supports may include help to identify suitable employment, job search skills, resumé development, and financial support for training and related costs. In the first quarter of 2017-18, 76% of veterans were more employable upon completion of a vocational rehab plan.

Education and training may be an important part of a plan for some veterans. Through the rehabilitation program, veterans can access up to $75,800 for education and related costs. Veterans can work towards a university degree, attend a technical college, or partake in a variety of educational programs.

In most cases, rehab services are provided through a network of local experts. A VAC case manager works with the veteran and their family to help determine what is needed and how to access these services. On behalf of VAC, Canadian veterans vocational rehabilitation services provides the vocational rehabilitation and assistance to help the veteran build their vocational rehab plans and achieve their goals.

Shortly, you’ll hear from my CAF colleague about SISIP. Some veterans may be participating in VAC’s rehab program, receiving medical and psychosocial rehabilitation services while receiving vocational assistance from SISIP. CAF, VAC, and SISIP case managers work to coordinate these services across organizations.

There are significant efforts under way between the CAF and VAC to enhance transition and to align programs and services. The Prime Minister identified closing the seam between CAF and VAC by reducing complexity and strengthening partnerships as the first priority in the Minister of Veterans Affairs' mandate letter. In an effort to ensure CAF members, veterans, and their families have a successful transition from the military to civilian life, a CAF-VAC seamless transition task force was established in 2016.

Early engagement and intervention is one of the most critical components of a successful transition process from CAF. In 2016, in response to the June 2014 report of the Standing Committee on Veterans Affairs, we launched the CAF-VAC enhanced transition services. This initiative is about VAC engaging earlier with medically releasing VAC members and their families. This results in building stronger relationships with medically releasing members prior to release, the determination of eligibility for programs and services pre-release, and the strengthening of joint case management activities between CAF and VAC.

In conclusion, I want to note that every veteran is different. However, one unifying experience is the major life change that results from the journey to life after service. The most successful transitions occur when a veteran has a positive state of well-being, which is a balance of financial, mental, physical, and social factors. Financial security is critical, but financial security is just one of the domains essential to the overall well-being of the veteran.

The rehabilitation services and vocational assistance program provides individualized, needs-based services to veterans and their spouses and survivors. The program aims to support restoration of functioning in areas such as mental and physical, social adjustment, family relationships, financial security, and employment.

Thank you again for the invitation to speak to you today. I appreciate the opportunity to support the work of your committee and consider what it may hold for the future of Canada's services to veterans and families in the recognition of their extraordinary contributions and service.

Thank you.

[The Chair, Liberal, Neil Ellis]

Thank you for your testimony.

Commodore, we will start with your 10 minutes, please.

[Commodore Sean Cantelon, Director General, Canadian Forces Morale and Welfare Services, Military Personnel Command, Department of National Defence]

Thank you, Mr. Chair.

Mr. Chair and members of the committee, as the Director General of Morale and Welfare Services, I am also the Managing Director of Non-Public Property and the Chief Executive Officer of the staff of the non-public funds, Canadian Forces. It is in these capacities that I'm responsible for over 5,000 staff of the non-public funds Canadian Forces employees on bases, wings, and units, as well as at the Canadian Forces morale and welfare services headquarters here in Ottawa.

CFMWS works to enhance the morale and welfare of the military community, thus contributing to the operational readiness and effectiveness of the Canadian Armed Forces. The programs and services under my authority are the personnel support programs, or PSP; the CANEX retail operations; military family services; the support our troops program; the Canadian Forces appreciation program; and the Canadian Armed Forces service income security insurance plan, or, as it is now known, SISIP Financial. I'm very pleased to have the opportunity to talk specifically about SISIP Financial products, services, and benefits.

Joining me today as CFMWS's subject matter expert is Mr. Phil Marcus, our Associate Vice-President, Operations, at SISIP Financial, and from Manulife, Ms. Kathy McIlwham, Vice-President of Wellness, Disability, and Life Group Benefits and Retirement Solutions.

SISIP Financial is a non-public property entity created under the National Defence Act in 1969. In the Canadian Forces, the chief of the defence staff is the vested authority for non-public property, and he has delegated the management functions to the managing director of non-public property, who happens to be me, the director general, morale and welfare services. The Canadian Forces morale and welfare services organization is responsible for administrating non-public property on behalf of the chief of the defence staff. SISIP Financial is a key division of the Canadian Forces morale and welfare services. Its revenues contribute more than any other division's to corporate non-public property.

The Department of National Defence and the Canadian Armed Forces are committed to the care, health and well-being of all military personnel and their families. Canadian Armed Forces members have excellent benefits, including world-class health care and rehabilitation services, monetary compensation and benefits, a government subsidized insurance program, a comprehensive transition support, and a rich network of support to military families.

The Canadian Armed Forces long-term disability plan is a key component of the Canadian Armed Forces' suite of group benefits. It provides ill or injured veterans with income and vocational rehabilitation support after their release. The CAF long-term disability plan provides up to 75% of a member's salary at release from the Canadian Armed Forces for both service-related and non-service-related illness and injuries. It is a premium-based disability insurance plan that provides financial benefits, including vocational rehabilitation, to medically releasing members or to members who take a voluntary release and qualify as totally disabled.

All Canadian Armed Forces members are automatically enrolled in CAF long-term disability coverage and are eligible for benefits starting from their first day of service. Personnel who leave the Canadian Armed Forces because of medical limitations receive income support for up to 24 months, or to age 65 if they're unable to return to work.

A component of this program is a vocational rehabilitation program that enables participants to restore their vocational capacity to prepare them for suitable gainful employment in the civilian sector. To this end, the program focuses on the veteran's abilities, interests, medical limitations and potential economic viability of their chosen plan to help establish their future. Recipients receive training that takes into consideration experience, any existing education plans prior to release and the economic realities in their geographic location. The vocational rehabilitation program support can start up to six months prior to release and is often coordinated with the member to ensure continuity after release.

In 1975, the CAF LTD insurer developed a vocational rehabilitation program tailored to former military members. Typically, employers provide a return-to-work rehabilitation program. However, fundamental to the Canadian Armed Forces is the principle of universality of service. It holds that Canadian Armed Forces members, regardless of rank or occupation, are liable to perform general military duties and common defence and security duties. Those in breach of universality of service are subject to an eventual release from the Canadian Armed Forces.

This open-ended nature of military service is one of the features that distinguishes the Canadian Armed Forces from a civilian notion of employment. Therefore, a vocational rehabilitation plan was created to provide specific vocational training and assistance with job search to a group of members who could not return to their previous occupation.

SISIP Financial also provides optional life insurance coverage for Canadian Armed Forces members, veterans, and their spouses. This coverage varies from $10,000 to $600,000, and premiums are paid by members. The member chooses the level of coverage they desire.

The Canadian Armed Forces pay all premiums for accidental dismemberment insurance, which provides coverage up to $250,000. There is no qualifying period. Similar to the public service where accidental death and dismemberment is offered though their optional life insurance plans.

In addition, all Regular Force and Class “C” Canadian Armed Forces members are provided with supplementary death benefit coverage, which is equal to two times their salary rounded to the nearest $250.

SISIP Financial also provides Canadian Armed Forces members the expertise of qualified financial advisers who understand the military environment and the complicated pay, pension, and benefits regime—including severance, pension transfer values, payment in lieu, and lump sum payments—and can provide them with sound financial advice. With 22 offices at major bases and wings across Canada, SISIP Financial is able to deliver personalized service, tailored advice, tailored product solutions, and an exceptional customer experience to meet those needs.

I would like to thank you again for the opportunity to appear, and I would be pleased to respond to any questions from the committee.

[The Chair, Liberal, Neil Ellis]

Thank you.

We will begin our questioning today with Ms. Wagantall.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Thank you, Chair.

The first question I'm going to ask is in regard to SISIP. Have you been impacted by the current issues with our pay system?

[Cmdre Sean Cantelon]

No. The Canadian Armed Forces is not paid by Phoenix, nor are SISIP employees. Staff of the non-public funds is a separate agency and are paid by a different payroll system.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

It still seems to take a long time for a lot of these individuals to get their funding. Why is that?

[Cmdre Sean Cantelon]

I will speak specifically to the SISIP LTD. In fact, I will turn to Mr. Marcus to provide that. The disability payment that comes at 75% is covered by SISIP. Perhaps my colleagues from Veterans Affairs can speak to their benefits.

As I stated in the introduction, normally six months prior to release the individual will meet with the SISIP counsellor, who will go through their files and knows their pay records. Generally speaking, our pay is issued within a normal pay segment upon release through SISIP's financial payment system.

Phil, would you add anything to that?

[Phil Marcus, Vice-President, Operations and Support Service, Department of National Defence]

I'm wondering what you mean by “it takes a long time to get paid”. Are you referring to LTD benefits, pension benefits, or to a combination of both?

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Do you guys follow Facebook?

[Cmdre Sean Cantelon]

Oh, yes.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

A lot of what I hear out there from various veterans organizations is that the funding they should be receiving seems to take longer than they were promised it would take.

[Cmdre Sean Cantelon]

I will speak to two things on behalf of the chief of military personnel, although it's not my direct responsibility. The director general of compensation and benefits is responsible for the Canadian Forces pension fund, and that pension fund has been passed over to the same pension service centre the federal government employees use. If I recall, roughly 90% of payments are done within the mandated 45 days, within 45 days of release. That would be their pension payment.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

Okay.

[Cmdre Sean Cantelon]

Their long-term disability payment, which comes from the insurance program they subscribe to, is paid through Manulife. That's the one I was talking about regarding their funds. There's a separate regime and series of benefits that come through Veterans Affairs, and I will not comment on that.

Often, when you see someone on Facebook saying they've had pay problems, you need to know which benefit is causing the problem and who should address it. In my mandate, I can speak on the Canadian Forces pay regimes—briefly on the pension, and in detail on the payment for long-term disability.

[Kathleen McIlwham, Vice-President, Wellness, Disability and Life, Manulife Financial]

I'm just going to add that in the long-term disability program, generally speaking, we're speaking with the client about six months prior to the date of release. We are quite fortunate: 87% of the clients will know they've been pre-approved prior to their date of release, so most of them know they can expect a payment within a month.

You might ask why it's 87%. Typically, between 8% and 10% of people don't apply until after the date of release. That's the major reason that number is where it is.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

You're saying it's the responsibility of the individual who's being released, then. They're not getting their paperwork in order.

[Kathleen McIlwham]

They work through CAF to be directed to us, and we get notification. Then we reach out and meet with them. We start with the vocational rehab team, which typically meets with them about a year before their date of release. We can actually start funding their rehabilitation program six months prior to the date of the release so that we can get them into rehabilitation and get them ready sooner. The sooner the better, truthfully, to get people engaged in a program. We get them in there six months before and we start working with them. We have the period between then and the date of release to get the payment approved.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

I have a note here that the months leading up to their release give them an opportunity to fill out the necessary applications while they have access to all the relevant information within CAF and are still on full salary. However, once members have been released, it becomes more difficult to obtain certain medical information from military personnel, which can add to the length of time required. Of course, that's because...with the disability program there isn't a concern whether the injuries are due to service or some other reason.

[Kathleen McIlwham]

I don't believe that's with respect to the long-term disability program. We rely heavily upon the papers that are coming from CAF to indicate that they are in fact being medically released. We are indifferent in terms of paying, whether it's service-related or non-service-related.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

That's the point I'm making.

[Kathleen McIlwham]

Either way, we treat them the same. We pay both the same.

[Cathay Wagantall, Conservative, Yorkton—Melville, SK]

In that circumstance, I understand that, but where we're running into trouble with a seamless transition is that the responsibility, then, to determine whether the injury is service-related isn't a concern of the Canadian Armed Forces or SISIP; it falls to VAC. That tends to create all kinds of complications for individuals, because it becomes much more difficult for them to receive their medical records. They then have to fight once they've already been released to prove they have an injury due to service.

That's something that I hear quite a bit, Elizabeth, if you could share.

[Elizabeth Douglas]

First, thank you for your question. I believe that you may be speaking about the disability award, the pension award. If that is the case, we do recognize there is a delay to the service standards. We are working on those, but we also recognize it is frustrating. That area, as Commodore Cantelon stated, is his area of responsibility. It's outside mine. However, I can certainly take any questions back, or you can leave any questions with us, and the director general of our centralized operations division would be pleased to answer them.

What I can answer for you today, and what falls under my jurisdiction, is the rehabilitation program. In terms of stats around the rehab program, all our service standards for the rehab program have an 80% service standard. In terms of the eligibility to get into the rehab program, we are at 75%, and the service standard, of course, is 80%. The earnings loss benefit is at 89% right now. Again, the service standard was 80%.

I will also state that once earning loss benefits came into place on October 1, 2016, there was a huge increase, a huge surge in those applications, so for a period of time our turnaround was a little bit longer. We were slower. We had a 36% surge increase, but we're now pleased to announce that we're back up, and we're at 89%.