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.