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VR in with 2x TCAT

ParadigmShift1983

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Good day,

I'm trying to figure out a few things and I can't find someone who's able to answer my question, hopefully some of you will have an idea :)

21 yrs service (4yrs combined reserves + reg).

I put in my VR for this July for personal family reasons. My plan was to take the transfer value and invest (yeah I'm aware TV took a hit from high interest).

I'm currently on my 2nd TCAT (neck/back) I spoke with my Doctor last week and he confirmed he will be filing me in my VR as 'unfit'.

Now my question is, should I possibly be expecting a medical pension? Or since it's a VR I should just go ahead with pulling out my Transfer Value as planned?

Thanks for your time.
 
Good day,

I'm trying to figure out a few things and I can't find someone who's able to answer my question, hopefully some of you will have an idea :)

21 yrs service (4yrs combined reserves + reg).

I put in my VR for this July for personal family reasons. My plan was to take the transfer value and invest (yeah I'm aware TV took a hit from high interest).

I'm currently on my 2nd TCAT (neck/back) I spoke with my Doctor last week and he confirmed he will be filing me in my VR as 'unfit'.

Now my question is, should I possibly be expecting a medical pension? Or since it's a VR I should just go ahead with pulling out my Transfer Value as planned?

Thanks for your time.
You won't be released until medically cleared. I don't know what your plans are or if you have work lined up but you may be able to get transferred to JPSU, start "working in your new job" and continue the medical release process which could take a while.

You also may be entitled to an immediately annuity in this case which would be potentially be a better deal than simply taking a transfer value.

I'd recommend sorting our your TCAT which if he is recommending "unfit" means it might turn in to a PCAT. Your release item may change to Med Release instead of Voluntary Release at that point.
 
Also, note that with Interest Rates, Govt Bonds and the Market atm, Transfer Values are way down.

I took mine and it is a substantial sum of money but if I could have taken an immediate annuity, I would opt for that because it's money every year for the rest of your life, as opposed to a Lump Sum payment which would be smaller than the amount they would pay you.
 
If you have documented service-related injuries you can attempt to submit a claim with VAC. If it's approved you would be able to draw either a to-be-determined monthly amount or receive a lump sum.

If you are given a medical release (3B) from the military you can draw your normal pension immediately instead of at 65 years old.

If you submit a voluntary release (4C I believe) you're breaking your contract and essentially quitting. If you have documented injuries you could be awarded a 4C "disabled" status which gives you a couple of extra benefits with VAC but not a pension. It's not really many benefits.

If you release medically you'll be paid 90% of your salary for 2 years post-release and have an opportunity to attend school for 2 years (and up to $31,900 in tuition and costs). I'd have to check but I believe that's on top of the $96,000 education benefit you have access to from VAC.

You should speak with your doctor and clarify what he/she means by unfit on your VR. They could be indicating you should be considered for a medical release instead of a voluntary release. Point to note a medical release could take 3-4 years.
 
If you have documented service-related injuries you can attempt to submit a claim with VAC. If it's approved you would be able to draw either a to-be-determined monthly amount or receive a lump sum.

If you are given a medical release (3B) from the military you can draw your normal pension immediately instead of at 65 years old.

If you submit a voluntary release (4C I believe) you're breaking your contract and essentially quitting. If you have documented injuries you could be awarded a 4C "disabled" status which gives you a couple of extra benefits with VAC but not a pension. It's not really many benefits.

If you release medically you'll be paid 90% of your salary for 2 years post-release and have an opportunity to attend school for 2 years (and up to $31,900 in tuition and costs). I'd have to check but I believe that's on top of the $96,000 education benefit you have access to from VAC.

You should speak with your doctor and clarify what he/she means by unfit on your VR. They could be indicating you should be considered for a medical release instead of a voluntary release. Point to note a medical release could take 3-4 years.
This is a way better explanation of what I was trying to say.

😁
 
Thanks for the responses guys, really appreciated.

My Doctor basically guaranteed that I would end up with a PCAT if I remained in the CAF.

Unfortunately, (for family/personal) reasons, I will be VRing this summer in July. Nothing is going to change that and I understand the potential loss of leaving a medical pension on the table. I was just wondering if there's a chance that my VR will lead to a medical release.

Thank you
 
Thanks for the responses guys, really appreciated.

My Doctor basically guaranteed that I would end up with a PCAT if I remained in the CAF.

Unfortunately, (for family/personal) reasons, I will be VRing this summer in July. Nothing is going to change that and I understand the potential loss of leaving a medical pension on the table. I was just wondering if there's a chance that my VR will lead to a medical release.

Thank you

@Jarnhamar really knows his stuff on this, definitely pay attention to what he says.

A medical release and the immediate unreduced pension is probably VERY much in your favour. Maybe explore whether there’s any way to expedite that.
 
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@Jarnhamar really knows his stuff on this, definitely pay attention to what he says.

A medical release and the immediate I reduced pension is probably VERY much in your favour. Maybe explore whether there’s any way to expedite that.
Indeed the time value of money says it is worth it to wait a bit and get that immediate annuity. Even better it is indexed immediately so you get yearly cost of living increases instead of waiting for that magic number of 85 (years of pensionable service + age)
 
If you submit a voluntary release (4C I believe) you're breaking your contract and essentially quitting. If you have documented injuries you could be awarded a 4C "disabled" status which gives you a couple of extra benefits with VAC but not a pension. It's not really many benefits.
That is false. By having disabled annotated to a 4c you are eligible for immediate annuity. I know because that happened to me a few years ago and I was able to start getting it instead of it being deferred.
 
That is false. By having disabled annotated to a 4c you are eligible for immediate annuity. I know because that happened to me a few years ago and I was able to start getting it instead of it being deferred.

What do you mean immediate annuity? Are you saying you were able to start recieving your pension at the time of your release without a medical release?
 
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What do you mean immediate annuity? Are you saying you were able to start recieving your pension at the time of your release without a medical release?
Yes, exactly. By getting a 4c annotated with disabled entitles you to an immediate annuity.

As per CFSA, :

disabled, as applied to any member of the regular force, has reference to any condition rendering him mentally or physically unfit to perform his duties as such member; (invalide)

ref: Canadian Forces Superannuation Act

as per CFSA 16(1)(d)
A contributor who ceases to be a member of the regular force and who has to their credit two or more years of pensionable service is entitled to an immediate annuity if:

(d) they are disabled and have to their credit not less than 10 years of pensionable service;

By getting a 4c annotated with "disabled" and having over 10 years of pensionable service, member is eligible to receive immediate annuity.
 
Right on, thanks for correcting me and posting the reference. I've known of a few people who had disabled annotated with their 4C and 5F release and I did't recall hearing about that.
 
Thanks for all the info! I've finally come into contact with the transition centre and that's pretty much what they were confirming me.

Immediate annuity but without the other medical release perks (bgrs move, severance pay, etc).

Thanks!
 
Thanks for all the info! I've finally come into contact with the transition centre and that's pretty much what they were confirming me.

Immediate annuity but without the other medical release perks (bgrs move, severance pay, etc).

Thanks!

As with everything else, policy is open to interpretation. There are many other releases items than just VR. Do not assume that you will get an annuity from a VR.….a VR is a choice. I am in the 3b pipeline right now and DMCA has made it pretty clear that if you VR, they ain’t changing my release item. Also, I would not use your transfer value for anything other than retirement. If you have service related injuries, apply to VAC and use THAT money for other things. Be patient.
 
As with everything else, policy is open to interpretation. There are many other releases items than just VR. Do not assume that you will get an annuity from a VR.….a VR is a choice. I am in the 3b pipeline right now and DMCA has made it pretty clear that if you VR, they ain’t changing my release item. Also, I would not use your transfer value for anything other than retirement. If you have service related injuries, apply to VAC and use THAT money for other things. Be patient.
CFSA is not open to interpretation...
 
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