Minister of Veterans Affairs Seamus O’Regan rises during question period in the House of Commons on Parliament Hill in Ottawa on Thursday, Sept. 27, 2018. The federal government says it shortchanged hundreds of thousands of veterans and their survivors over seven years, and is preparing to compensate them a total of $165 million. (Adrian Wyld/The Canadian Press)

Feds promise $165 million in compensation after shortchanging 270,000 veterans

Veterans Affairs Minister Seamus O’Regan revealed the error and compensation package Monday

Repaying hundreds of thousands of disabled veterans and their survivors for a calculating error that deprived them of some of their pensions for seven years will cost $165 million, the federal government says.

Veterans Affairs Minister Seamus O’Regan revealed the error and compensation package Monday, on the eve of Remembrance Day, even as the federal NDP called on the government to ensure all money earmarked for veterans’ benefits is actually spent.

Veterans Affairs Canada miscalculated adjustments to the disability pensions of 270,000 veterans, RCMP members and their survivors between 2003 and 2010 because it didn’t properly account for a change in personal tax exemptions, O’Regan said.

Most of the affected veterans were shortchanged several hundred dollars, though some lost thousands of dollars because of the error, which O’Regan said was only recently flagged to the government by veterans’ ombudsman Guy Parent.

While the minister promised that all veterans would be compensated, payments aren’t expected to begin until 2020, which O’Regan blamed on the sheer number of Canadians affected by the problem.

Complicating matters is the fact as many as 120,000 of the affected veterans, notably those who served in the Second World War and in Korea, have died. O’Regan’s spokesman, Alex Wellstead, said their survivors and estates will still be eligible.

News of the error and compensation came as the New Democrats tabled a motion on Monday designed to pressure the Liberals to spend $372 million that was earmarked for veterans’ benefits in recent years but wasn’t spent.

NDP Leader Jagmeet Singh said veterans have received inadequate assistance and faced barriers when it comes to accessing services and support for far too long because money approved by Parliament ends up going unused and being returned to the treasury.

The routine of letting money “lapse” needs to end, Singh said, which is why the NDP decided to use a rare opposition day to introduce a non-binding motion calling on the government to roll unspent money into budgets for the next year.

Members of Parliament were scheduled to debate the motion into the evening on Monday and vote on it Tuesday.

Successive governments have defended their inability to spend all the money set aside for veterans, saying they often ask Parliament for too much money to ensure there isn’t a shortfall when former service members need assistance.

O’Regan was to make the same point in the House of Commons on Monday night, saying in prepared remarks: “Whether 10 veterans come forward or 10,000, no veteran who is eligible for a benefit will be turned away because we do not have the funds.

“If a veteran is eligible for a benefit, they get it. When that pendulum swings the other way and there are fewer veterans seeking a particular benefit; the money stays in the consolidated revenue.”

Critics, however, have blamed the lapses on long wait times and other barriers that make it difficult for veterans to access services, and said the unspent money could be used to help veterans in a variety of other ways.

— with reporting by Janice Dickson

Lee Berthiaume, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Chilliwack Chiefs blow out Prince George Spruce Kings in home opener

Ethan Bowen scored three goals as the Chiefs dumped their Mainland division rivals 6-2.

Missing Chilliwack 17-year-old last seen on August 20

RCMP asking public for help to find Lorenz Pentz

Blowback from the Trudeau in brownface debacle reaches Chilliwack

PM in questionable photos released in the middle of the federal election campaign had ripple effects

Prospera and Westminster credit unions approved for proposed merger

Abbotsford- and Surrey-based companies now take matter to membership vote

Gill Road bar in Chilliwack being eyed for gating and campsite

People love Gill for fishing and four-by-fouring but desecration by trash dumpers is continuous

PHOTOS: Young protesters in B.C. and beyond demand climate change action

Many demonstaers were kids and teens who skipped school to take part

Walmart to quit selling e-cigarettes amid vaping backlash

U.S.’s largest retailer points to ‘growing’ complications in federal, state and local regulations

Former B.C. lifeguard gets house arrest for possession of child porn

Cees Vanderniet of Grand Forks will serve six months of house arrest, then two years’ probation

Student arrested at South Delta Secondary for alleged assault

The alleged assault occurred between two SDSS students on Wednesday, Sept. 18

Crown alleges resentment of ex-wife drove Oak Bay father to kill his daughters

Patrick Weir alleged in his closing arguments that Andrew Berry is responsible for the deaths of his daughters

‘I’d do it again,’ says B.C. man who swam naked, drunk in Toronto shark tank

David Weaver, of Nelson, was drunk when he went to Ripley’s Aquarium in Toronto on Oct. 12 2018

How to react to Trudeau’s racist photos? With humility, B.C. prof says

‘We are now treating racism as a crime that you cannot recover from’

Victoria man spots online photo of his totem pole 11 years after it was stolen

Mark Trueman restored the pole himself before it was stolen off of his property in Duncan

VIDEO: Fire destroys Williams Lake strip club targeted by past arson attempts

Diamonds and Dust Entertainment Lounge destroyed by fire, as well as New World Tea and Coffee House

Most Read