Subsection 17(5) in the SRCA provides a weekly amount of compensation to be paid for the benefit of a child. This payment is not included in the widow's/widower's taxable income, but is taxable income for the child. A periodic payment under this subsection is added to the fortnightly equivalent of the lump sum death benefit to obtain a total fortnightly equivalent of the compensation paid in respect of the death. The above preferred pension rules are then applied when offsetting VEA benefits paid in respect of the death. Other compensation is not offset against an education allowance paid under the VCES. In practice as the widow/widower is the preferred pensioner, any orphan's pension payable is the first to be offset with any residual of the total fortnightly equivalent of the other compensation offset against the war widow's/widower's pension.
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