Retro Payments

[schart28]

I should be getting a retro payment of salary since 2005, disability comp. I been getting different asnwers from my unit on deffered payment. So my question: Since this is disability payment, can I ask that it be paid over the next four or five years, instead of a lump sum? It would help on tax side.

If so, can you provide me with a reference so I can provide this to my unit.


thanks

 

[BinRat55]

Disability pensions are not taxable. That should go for lump sum pay-outs as well. Not sure what your unit has to do with it though?

 

[schart28]

Are you not talking about VAC pensions? I am talking about disability compensation from DND, CBI 210.72 - COMPENSATION FOR DISABILITY – RESERVE FORCE

 

[BinRat55]

Thanks for the reference - I never knew about this one - well, in a roundabout sorta way I did, I just never knew it as Disability Payments.  Now, may I ask you a few questions about it? Like, for instance, were you on a contract (A, B or C) and if so, was it terminated upon your injury? Did you have to pay out-of-pocket expenses for hospitalization, treatment, appliances, that sort of thing? I read the CBI and it was kind of unclear to me.

As for receiving your payment over a period of years, don't quote me on this but I wouldn't think so.  In this day and age of DND Accrual Accounting, if they hold anything over a tax year that's owed out, there's penalties - better in you pocket that theirs in that case!!