Vol. 148, No. 8 — April 9, 2014

Registration

SOR/2014-74 March 28, 2014

DEPARTMENT OF VETERANS AFFAIRS ACT

Regulations Amending the Veterans Burial Regulations, 2005

P.C. 2014-339 March 27, 2014

His Excellency the Governor General in Council, on the recommendation of the Minister of Veterans Affairs, pursuant to section 5 (see footnote a) of the Department of Veterans Affairs Act (see footnote b), makes the annexed Regulations Amending the Veterans Burial Regulations, 2005.

REGULATIONS AMENDING THE VETERANS BURIAL REGULATIONS, 2005

AMENDMENTS

1. (1) Paragraph (a) of the definition “veteran” in section 1 of the Veterans Burial Regulations, 2005 (see footnote 1) is replaced by the following:

• (a) a former member of the Canadian Forces or any predecessor naval, army or air forces of Canada or Newfoundland;
  

(2) Paragraph (c) of the definition “veteran” in section 1 of the Regulations is repealed.

2. Paragraph 2(a) of the Regulations is amended by adding “or” at the end of subparagraph (v) and by repealing subparagraphs (vii) and (viii).

3. Paragraph 5(1)(a) of the Regulations is replaced by the following:

• (a) in Canada or elsewhere, if there is an insufficiency of funds, as determined under section 4, on application, a person described in any of subparagraphs 2(a)(i) or (iv) to (vi);

4. Paragraph 9(6)(b) of the Regulations is replaced by the following:

• (b) a person referred to in paragraph (a) of the definition “income-qualified civilian” in section 1 or a person referred to in any of subparagraphs 2(b)(ii) to (iv).

COMING INTO FORCE

5. These Regulations come into force on March 31, 2014, but if they are registered after that day, they come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Background

Veterans Affairs Canada’s (VAC) Funeral and Burial Program (the Program) provides financial assistance to the families/estates of eligible traditional and modern-day veterans. The Program helps with the costs of funeral services; burial or cremation; and military-style grave markers (or inscription on private grave markers).

The Last Post Fund Corporation (LPF), a national, non-profit organization founded in 1909, administers the Program on behalf of VAC and in compliance with the Veterans Burial Regulations, 2005 (the Regulations).

Traditional veterans refer to those men and women who served during the First and Second World Wars and the Korean War; whereas, modern-day veterans refer to former Canadian Armed Forces personnel who served in modern-day operations, such as international peacekeeping missions and the Canadian mission in Afghanistan.

Assistance can be provided as a “matter of right” or through an assessment of a veteran’s estate at the time of death, known as “means-tested.” “Matter of right” provides assistance to veterans who die of a service-related disability, up to the maximum payable rates outlined in the Regulations. “Means-tested” assesses the value of the veteran’s estate, and if applicable, that of his/her survivor at time of the veteran’s death. Full or partial assistance is paid by the LPF up to the maximum allowable under the Regulations. In cases where the veteran leaves a survivor, the Regulations allow the survivor to exempt the home, a car and $12,015 from the means-tested calculation. This leaves the survivor with additional resources to transition to a reduced level of income following the veteran’s death.

In March 2013, the Government of Canada announced funding in the federal budget to make improvements to the Program. Regulatory changes were introduced in June 2013 that increased the funeral services reimbursement rate and replaced the prescriptive list of funeral services with broader statements related to all ceremonies and services held at the time of death.

Building on these changes, the Government of Canada tabled the 2014 federal budget (Economic Action Plan 2014) on February 11, 2014, which included further enhancements to the Program to expand the Program’s eligibility to ensure that modern-day veterans of modest means have access to a dignified funeral and burial. Under the Veterans Burial Regulations, 2005, traditional and modern-day veterans are treated differently when accessing means-tested assistance to receive funeral and burial benefits.

Issues

Currently, traditional veterans only need to show financial need, whereas modern-day veterans need to show financial need and be in receipt of another VAC benefit (disability pension, disability award, earnings loss benefit or income support).

The inequity between these two groups of veterans when accessing means-tested assistance has resulted in a number of families of deceased modern-day veterans who would otherwise qualify for funeral and burial benefits under the means-test to be denied financial support.

Objectives

The objectives of these amendments include

• providing parity between traditional and modern-day veterans when accessing funeral and burial benefits; and
• ensuring all modern-day veterans of modest means have access to a dignified funeral and burial.

Description

The Regulations repealed subparagraph 2(a)(vii), which was the requirement for modern-day veterans to be in receipt of a VAC benefit in order to be considered for funeral and burial benefits under the means-test.

The regulatory amendment also extended access to the Program’s means-test under paragraph 2(a) to modern-day veterans, as newly defined under section 1 of the Regulations.

Regulatory and non-regulatory options considered

Eligibility to the Program is currently prescribed in the Regulations; therefore, to expand or change the Program eligibility, a regulatory amendment is necessary. Accordingly, there were no non-regulatory options considered to address the issue outlined above. Allowing the Program to remain in its present state (the status quo) was the only other option considered. However, this option would not have addressed the concern that most modern-day veterans are ineligible to apply for funeral and burial assistance under the means-test.

Benefits and costs

Cost-benefit statement

Costs, benefits and distribution				First Year 2014–15	Final Year 2023–24	Total (Present Value)	Annualized Equivalent
A1. Quantified impacts ($ thousands)
Benefits	Modern-day veterans’ families/next-of-kin/estates			$1,914	$2,892	$16,159	$2,360
Costs	Government of Canada (VAC)			$1,914	$2,892	$16,159	$2,360
Net benefits				$0	$0	$0	$0
A2. Administrative burden summary — This section is not applicable as there is no administrative burden to businesses as a result of this proposal.
B. Quantified impacts
Positive impacts		Veterans’ families/next-of-kin/estates		209	301	2 515	252
Negative impacts		None identified
C. Qualitative impacts
Modern-day veterans			Increased comfort and well-being
Modern-day veterans’ families/next-of-kin/estates			New compensation Increased peace of mind
Veterans Ombudsman/veterans’ stakeholder groups/Canadians			Increased satisfaction knowing modern-day veterans of modest means have access to funeral and burial benefits
Government of Canada (VAC)			Positive impact on reputation

All costs related to this proposal will be borne by VAC. The LPF, as the Program’s administrator, will provide this same amount to eligible applicants.

The methodology used to determine the number of modern-day veterans expected to be eligible for benefits was calculated by projecting the expected modern-day veteran death population, subtracting those modern-day veterans who currently have eligibility, and then applying the proportion of low-income modern-day veterans. The unit cost was assumed to be $9,079 (this includes a maximum benefit of $7,376 plus the average burial costs of $1,703 in 2012–13). Further to this, annual inflation was applied to the burial portion amount as there is currently no limit to burial costs.

Over the next 10 years, it is expected that over 2 500 families or estates of modern-day veterans will benefit, as a result of these changes, from the expansion of the eligibility to the means-test to all modern-day veterans.

Modern-day veterans themselves will be reassured knowing that if eligible, their loved ones will be able to receive financial assistance for their funeral expenses when they pass away. As well, more families will be able to receive this financial support in their time of need.

Canadians will be satisfied to know that modern-day veterans, in death, will be treated and supported in the same appropriate manner as traditional veterans, given the sacrifices they have made for Canada. The veterans Ombudsman and veterans’ stakeholder organizations will be supportive of the fact that VAC is making further improvements to the Program.

The cost-benefit analysis is available upon request.

“One-for-One” Rule

The “One-for-One” Rule does not apply to these amendments, as there is no change in administrative costs to businesses.

Small business lens

These amendments do not increase or decrease administrative burden or compliance costs imposed on small businesses.

Consultation

These amendments respond to an ongoing concern with the Program that has been raised by stakeholder groups.

Over the past number of years, VAC has experienced increasing pressure from stakeholder groups including the Royal Canadian Legion; the Army, Navy and Air Force Veterans in Canada; the Office of the Veterans Ombudsman; and the LPF to make improvements to the Program, including expanding means-tested funeral and burial eligibility for modern-day veterans to be equal to the same eligibility provided to traditional veterans.

Budget 2014 publicly announced that the Government of Canada will expand eligibility for the Funeral and Burial Program to ensure that modern-day veterans of modest means have access to a dignified funeral and burial. The Budget announcement has been met with general support from stakeholders groups, such as the Royal Canadian Legion. This was expected given that the Program change supports the recommendation these groups have been advocating for.

Rationale

These amendments will give modern-day veterans equal access to means-tested funeral and burial assistance that is currently provided to traditional veterans.

The amendments also ensure that the families and estates of modern-day veterans who are in financial need are provided with financial assistance towards funeral and burial costs.

The amendments respond to concerns and priorities identified by veterans and their families, and make improvements that will ensure the Program remains effective in meeting veterans’ needs in life and respectfully honour them in death.

VAC is constantly looking at ways to improve its programs and services, and continues to work with veterans and their families to respond to their priorities and concerns.

These amendments will not impose costs or administrative burden on veterans, their families, or businesses.

Implementation, enforcement and service standards

Upon the coming into force of the regulatory changes on March 31, 2014, applications from the families or estates of any deceased modern-day veterans will be able to be considered for funeral and burial assistance under the Program’s means-test. It should be noted that no changes to the actual means-test were made with the expansion of eligibility. Applicants will still have to meet the same criteria before financial support is provided. Application forms (available on the LPF Web site) and the Program’s policy documents have been updated and made available to the public (upon request) prior to the coming into force of the regulatory changes.

The existing service delivery infrastructure will be utilized. Applications will continue to be processed by the LPF, who will administer benefits using the amended Regulations and policies. Ongoing communications with LPF staff (as the administrator of the Program) will be an integral component to the successful implementation of the changes in eligibility. LPF staff will be informed and trained in advance of the effective date of the program changes.

VAC also has published service standards. These are available on the Department’s Web site (www.vac-acc.gc.ca). There are specific service standards for the Funeral and Burial Program. Although the expansion of eligibility is expected to result in an increase in the number of applications from modern-day veterans, it will not affect the service standards.

Performance measurement and evaluation

Reviews will be conducted in accordance with the Program’s performance measurement strategy, which was developed to support performance measurement and reporting by ensuring data is accurately capturing and portraying the performance of the Program. The strategy will support future Program evaluations and the regular monitoring of Program performance in contributing to the Program’s objective, which is that eligible veterans who pass away as a result of their service or without financial means receive funeral and burial assistance from VAC as a form of recognition and/or to alleviate the financial burden of the survivors.

VAC’s Audit and Evaluation Division conducts annual audits and evaluations of VAC programs. Results are published on VAC’s Web site regularly.

Contact

Katherine Morrow
Manager
Cabinet Business Unit
Policy Division
Veterans Affairs Canada
P.O. Box 7700
Charlottetown, Prince Edward Island
C1A 8M9
Telephone: 902-566-8960
Email: Katherine.Morrow@vac-acc.gc.ca

• Footnote a
  S.C. 2011, c. 24, s. 180
• Footnote b
  R.S. c. V-1; S.C. 2000, c. 34, par. 95(a)
• Footnote 1
  SOR/2005-200