Does VAC pay retroactive disability benefits?
Yes. Pain and Suffering Compensation is generally effective from the date Veterans Affairs Canada received your application. Because decisions take time, the period between application and decision is paid retroactively.
How far back does VAC pay?
Retroactivity usually runs to the date your application was received, not the date the disability began. Filing promptly protects the earliest possible effective date and maximizes any retroactive amount.
Is retroactive Pain and Suffering Compensation taxable?
No. Pain and Suffering Compensation, including any retroactive portion, is a non-taxable benefit. You do not report it as income.
Can I choose a lump sum for the retroactive amount?
Retroactive amounts follow the payment form you elect for your award. You may take Pain and Suffering Compensation as a lump sum or as lifetime monthly payments of equal value.