SISIP and Income Security: Understanding the Current Landscape

SISIP LTD operates under insurance industry rules. This article examines how this structure affects medically released veterans and what reform options are being discussed.

CAF Long Term Disability is a group insurance plan administered by Manulife under policy set by the Canadian Forces Morale and Welfare Services (CFMWS). Because it is insurance rather than a statutory benefit, the rules, funding, tax treatment and review routes differ from VAC programs.

Why the structure matters

• Benefits are claim-based, not automatic payments.
• Tax treatment depends on wage-loss replacement plan rules and member contributions.
• Reform targets include taxability, contribution records and after-tax fairness.

What VANCA is watching

VANCA follows proposals to change the tax treatment of CAF LTD, improve contribution-letter access, and study funded supplements or plan redesign. We share verified updates as policy develops.