What is the difference between SISIP and VAC benefits?

SISIP and VAC are completely separate programs with different purposes, funding, and rules. SISIP (Service Income Security Insurance Plan): - An insurance program administered by SISIP Financial - Provides Long Term Disability (LTD) income to CAF members who are medically released - Covers conditions that are NOT primarily related to service (since April 2024, this is the primary pathway for non-service-related conditions) - Benefits are based on your military salary - SISIP is reduced by your CAF pension amount - SISIP LTD is taxable income VAC (Veterans Affairs Canada): - A government department providing benefits to veterans and families - Provides disability compensation (Pain and Suffering Compensation) for conditions related to service - Provides Income Replacement Benefit (IRB) for veterans in rehabilitation or with diminished earnings capacity - Provides treatment benefits, VIP, education benefits, and more - VAC Pain and Suffering Compensation is tax-free - VAC IRB is taxable Key differences: - SISIP covers non-service-related conditions; VAC covers service-related conditions - SISIP is insurance; VAC is a government benefit program - SISIP is reduced by your CAF pension; VAC benefits are not - You can receive both SISIP and VAC benefits simultaneously for different conditions - Since April 2024, the pathway depends on whether your condition is primarily service-related If you are medically releasing, it is important to apply to both programs. SISIP and VAC each make their own decisions independently.