VANCA helps Canadian veterans and families with 1:1 navigation, benefits guidance, and referral support for civilian transition, PTSD, injury, housing, and care

What happens to my pension when I medically release?

When you medically release from the Canadian Armed Forces, your pension is calculated based on your pensionable service and salary — the same as any other release. Key points about your CAF pension after medical release: - Your pension is not reduced because of a medical release - If you have at least 2 years of pensionable service, you can typically start receiving your pension immediately - If you are under age 55, your pension may be reduced based on your age — but if your release is related to a medical condition, different rules may apply - Your pension is taxable income - You can transfer your pension to another employer's plan or a locked-in retirement account under certain conditions Your pension is separate from VAC disability benefits. VAC benefits like Pain and Suffering Compensation are tax-free and are not reduced by your pension. SISIP/CAF LTD is also separate — it is an insurance benefit, not a pension. SISIP is reduced by the amount of your CAF pension.

How do I prepare for medical release?

Preparing for a medical release can feel overwhelming, but breaking it into steps makes it manageable. 1. Confirm your release details - Get your release date and release item in writing - The release item (typically 3(b) for medical) affects which programs you are eligible for - Talk to your Transition Centre or Personnel Support Unit 2. Request your medical records - Submit a Privacy Act request for your CAF medical records - Request your CF 98 forms (injury reports) - Keep copies of all medical documentation 3. Apply for income support - Apply to SISIP/CAF LTD through your Transition Centre - Apply to VAC for disability benefits through My VAC Account - Apply as early as possible — benefits can take time to process 4. Arrange civilian healthcare - Your CAF health coverage ends on your release date - Apply for provincial health coverage if you do not already have it - Research supplementary coverage (dental, prescription drugs, vision) - Transfer prescriptions to a civilian pharmacy 5. Organize financial documents - Collect all tax slips (T4, T4A, pension slips) - Request a pension estimate - Review your will, power of attorney, and insurance - Check your SISIP financial services account 6. Plan your next steps - Consider VAC rehabilitation programs - Explore education options (Education and Training Benefit) - Research career transition services - Connect with veteran support organizations You do not need to do everything at once. Focus on the most urgent items first — confirming your release date and applying for income support are usually the highest priority. Feeling uncertain during this transition is completely normal. You are not expected to understand everything at once.

Medical Release

Understanding the process without having to learn the whole system at once.

A medical release is a process, not a single appointment

The timeline and supports vary. You can ask questions, request copies of records, involve a trusted person, and ask for information in writing. Feeling uncertain during this transition is common. You are not expected to understand everything at once.

The three broad phases

Phase 1

Injury or illness to a medical release decision

CAF health services assess and treat the condition. Administrative review and decisions about universality of service may occur. Keep copies of incident records, CF 98 forms, specialist reports and functional limitations. If release becomes likely, ask early about transition planning and your right to copies of your records.

Phase 2

Medical release decision to the release date

This is the main preparation period. Confirm the release date and release item, attend release and transition appointments, review income and insurance programs, establish civilian health care, and make sure applications are moving before CAF coverage ends. This phase can feel rushed — start as early as possible.

Phase 3

After release

Adjustment continues after the release date. Official guidance describes the post-release phase as continuing for up to two years. Follow up on pending claims, health coverage, tax slips, rehabilitation or vocational services, and changes in income or family needs. Many veterans describe the first year after release as the hardest to navigate.

Your medical release checklist

You do not need to complete everything at once. Work through this in stages as your release date becomes clearer.

☐Confirm your release item, release date and whether the date is firm or still under review.

☐Attend the release medical examination and ensure all conditions and functional impacts are documented.

☐Request your medical summary package and, where needed, a full copy of your CAF medical records. Include CF 98 forms.

☐Arrange a civilian family doctor or nurse practitioner and provide the medical summary for continuity of care.

☐Complete the CAF/VAC transition interview and ask for a written list of actions and deadlines.

☐Confirm CAF LTD/SISIP eligibility and the claim process. For medical releases, the nurse case manager may help coordinate the LTD package.

☐Review pension estimates, severance or other release payments, and how they interact with LTD or other income.

☐Apply for provincial health coverage and confirm when CAF health coverage ends.

☐Open or update My VAC Account and submit relevant VAC applications early when possible.

☐Ask about family supports, Veteran Family Program access and your local Transition Centre contacts.

Medical records matter later

VAC may use service and medical evidence to decide whether a condition was caused or aggravated by service. The CAF Transition Guide confirms that releasing members receive a relevant medical document package and have the right to ask for their full medical records.

Review your package before release when possible and note any missing records or missing CF 98 forms. It is easier to correct a gap before release than after.

Income and rehabilitation: a key 2024 change

Key change since April 2024

Since 1 April 2024, medically releasing members whose health problems are not primarily service-related generally receive eligible vocational, long-term disability and rehabilitation services through CAF LTD rather than VAC rehabilitation. Service-related needs may still involve VAC programs.

This is an area where a written program decision matters because the correct pathway depends on the facts of your situation. Ask the responsible organization to confirm in writing which program applies to your rehabilitation and LTD.

A plain-language example

Example: A staged approach to medical release

Jordan receives a medical release date. Instead of trying to apply for every program at once, Jordan first confirms four things:

1. The release date and release item
2. The medical record package (including CF 98 forms)
3. The CAF LTD/SISIP application
4. The first civilian medical appointment

After those are moving, Jordan reviews VAC disability benefits and education or career options. The plan is still comprehensive, but it is completed in stages rather than all at once.

Every person's circumstances are unique. This example is provided for educational purposes only and should not be considered legal, medical, or financial advice.

Questions to take to your Transition Centre

→Which transition tasks are still incomplete?

→Who is my primary contact before and after release?

→What applications should be submitted before my release date?

→When does CAF health coverage end, and what interim coverage applies?

→Which income programs may offset one another?

→What will my family continue to access after release?

Common questions

Frequently Asked Questions

Real questions from Canadian Armed Forces members, Veterans, families and caregivers—answered in plain language.

Can't find your question? Ask us directly — we review every question and use them to build new answers.

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Related Benefits

VAC Disability Benefits Income Replacement Benefit SISIP LTD VAC Rehabilitation

Related Claim Tools

Disability Claim Checklist Evidence Tracker Describe the Impact

Related Glossary Terms

Release Item

The administrative code describing the reason for release from the CAF. Item 3(b) generally applies to medical releases.

CF 98

Canadian Armed Forces Workplace Injury and Illness Report. Documents the circumstances of an injury or illness during service.

CAF LTD

Canadian Armed Forces Long Term Disability — the insurance program administered by SISIP for releasing members.

Transition Centre

A CAF facility that helps releasing members coordinate transition tasks and access services.

Universality of Service

The CAF principle that all members must be medically and physically fit to deploy. A medical condition affecting this can lead to medical release.

My VAC Account

The online portal for Veterans Affairs Canada. Used to apply for benefits and track applications.

Official Sources

We review these links at least annually. Dates, amounts and eligibility rules can change.

This page provides navigation and education only. It is not legal, medical, financial, or tax advice. We do not decide eligibility or guarantee benefit outcomes. Official decisions are made by the responsible government department, tribunal, insurer, or benefit provider.

Last reviewed: July 2026