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9.1 Preferred Pensioner

Prior to June 1985, dependants of veterans were paid small disability pension allowances.  Where more than one person is being paid a benefit, one pension is preferred over another when a compensation offset is being placed.  This includes disability pension paid to a dependant or orphan's pension being paid to a child. Compensation offsetting is applied in a prescribed order. Subsections 30C(8) - 30C(12), 30D(5) - 30D(8), and 74(9) - 74(12) of the VEA define the order in which pension should be reduced to nil.  The veteran is always the preferred pensioner and this pension is the last to be offset.  The order in which pension should be reduced to nil is as follows:

  1. The younger child
  2. The older child
  3. The spouse
  4. The veteran