Vol. 139, No. 19 — September 21, 2005

Registration
SOR/2005-282 August 31, 2005

DEPARTMENT OF VETERANS AFFAIRS ACT

Regulations Amending the Assistance Fund (W.V.A. and C.W.A.) Regulations

P.C. 2005-1532 August 31, 2005

Her Excellency the Governor General in Council, on the recommendation of the Minister of Veterans Affairs and the Treasury Board, pursuant to paragraph 5(e.1) of the Department of Veterans Affairs Act, hereby makes the annexed Regulations Amending the Assistance Fund (W.V.A. and C.W.A.) Regulations.

REGULATIONS AMENDING THE ASSISTANCE FUND (W.V.A. AND C.W.A.) REGULATIONS

AMENDMENT

1. Section 7 of the Assistance Fund (W.V.A. and C.W.A.) Regulations is replaced by the following:

7. (1) Subject to subsection (2), the Minister of Veterans Affairs may grant financial assistance from the Assistance Fund to a recipient under the Act or under Part XI of the Civilian War-related Benefits Act if that person

(a) is a resident of Canada; and

(b) makes an application to the Minister demonstrating that the assistance is required to meet an emergency or an unexpected financial contingency or to relieve financial distress.

(2) The assistance shall not exceed the sum of one thousand dollars during any calendar year.

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

War Veterans Allowance (WVA) is a form of financial assistance available from Veterans Affairs Canada (VAC), pursuant to the War Veterans Allowance Act. In recognition of war service, qualified persons are provided with a regular monthly income to meet their basic needs. Eligibility is determined by the wartime service of a veteran or qualified civilian, age or health, income and residency. The amount of WVA is based on income, marital/ common-law partner status and number of dependants. Recipients are paid at a single, married or orphan's rate.

The Assistance Fund (W.V.A. and C.W.A.) Regulations are made pursuant to the Department of Veterans Affairs Act. These Regulations provide for financial assistance to War Veterans Allowance recipients who are resident in Canada and who need aid to meet emergencies or unexpected contingencies for which they do no have sufficient resources.

Since July 1, 1980, the dollar value of Assistance Fund grants has been set at a maximum of $500 per calendar year per eligible WVA recipient. In these intervening 25 years, the cost of living has increased substantially and, combine this with the increasing needs of ageing clients, the $500 cash grant no longer meets most requests for such assistance. An increase in the dollar value from $500 to a maximum of $1,000 would help relieve this unexpected financial shortfall and, more importantly, contribute positively to client health and safety. This increase would take effect with respect to calendar year 2005.

Alternatives

There are no alternatives to implementing this program modification other than by regulations, as the terms and conditions of the Assistance Fund program are set out in a regulatory framework.

Benefits and Costs

This amendment to the Assistance Fund (W.V.A. and C.W.A.) Regulations will benefit eligible War Veterans Allowance recipients, including dependants, survivors and orphans, by increasing the cash grant to a much more realistic amount in order to meet the emergencies or unexpected contingencies of these clients.

These grants are most commonly paid for shelter, clothing, health items and essential appliances. In 1980, when the existing $500 rate was set, it was sufficient to meet these needs; however, the situation has changed greatly in the interim.

The cost of this program modification can be funded through the existing reference levels. In fiscal year 2003-2004, approximately 1,900 clients received grants through this program. The total expenditures were $692,000. The number of eligible Assistance Fund clients is expected to decline in the next few years, in direct relation to the decline in the number of War Veterans Allowance recipients.

Consultation

The Regulations were pre-published in the June 4, 2005, edition of the Canada Gazette, Part I for a period of 30 days, providing a formal consultation period during which interested parties could make representations.

At the same time, the Department sent letters to three veterans' organizations, namely, the Royal Canadian Legion, the National Council of Veterans Associations of Canada and the Army, Navy & Air Force Veterans in Canada, informing them of the pre-publication date and guiding them to the Canada Gazette Web site.

It is anticipated that this regulatory initiative which substantially enhances the program has been well-received as there has not been any feedback or commentary arising from either the general consultation or the specific contact made with the veterans' organizations.

Compliance and Enforcement

Relevant benefit control procedures will continue to apply to the provision of Assistance Fund cash grants. The Department has policies and administrative procedures in place to determine eligibility and entitlement of applicants seeking financial assistance from the Assistance Fund program. Individual client needs relating to reported emergencies and unexpected contingences are assessed. Prior to approving an Assistance Fund grant, a screening procedure is conducted to ensure applicants are qualified recipients under the War Veterans Allowance Act. The Department has a three-tier redress process available to applicants who are dissatisfied with a decision.

Contact

Mary Brodersen
Chief, Legislation (Statutes)
Veterans Affairs Canada
161 Grafton Street
Daniel J. MacDonald Building, Room 304
P.O. Box 7700
Charlottetown, P.E.I.
C1A 8M9
Telephone: (902) 368-0682
FAX: (902) 368-0437
E-mail: mary.brodersen@vac-acc.gc.ca

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with extensible hypertext markup language (XHTML 1.0 Strict).