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

Surrey hunter fined $10,000 after shooting a bull moose and leaving it to die

The man was convicted for three Wildlife Act offences after shooting a bull moose not in season

Tonight’s Surrey RCMP Classic final: Cloverdale and South Surrey school teams to battle

Elsewhere, Holy Cross boys team aims to win another BC Catholics championship on home court

Surrey RCMP asks for public’s help in finding missing 14-year-old

Police say Ali Al-Shai was last seen on Jan. 16

Province to pass $1.25-million repair bill for South Surrey overpass on to ICBC

152 Street overpass was struck by overheight truck on Dec. 4, 2017

Ex-Mountie who investigated ‘Surrey six’ murders gets conditional sentence

Derek Brassington pleaded guilty in B.C. Supreme Court on Friday

Self serve doggy-wash poised to change dog grooming industry

Add money, start spraying to wash dog in the K9000

UPDATE: B.C. woman and boy, 6, found safe, RCMP confirm

Roseanne Supernault says both she and her six-year-old nephew are fine and she has contacted police

PHOTOS: Women’s Marches take to the streets across B.C. and beyond

Women and allies marched worldwide protesting violence against women, calling for equality

VIDEO: Giants wrap southern swing with 6-4 win in Spokane

The Lower Mainland-based hockey team defeated the Chiefs Friday night.

Anxiety in Alaska as endless aftershocks rattle residents

Seismologists expect the temblors to continue for months, although the frequency has lessened

Women’s March returns across the U.S. amid shutdown and controversy

The original march in 2017, the day after President Donald Trump’s inauguration, drew hundreds of thousands of people

Federal Liberals announce former B.C. MLA as new candidate in byelection

Richard Lee will face off against federal NDP leader Jagmeet Singh

No winning ticket in $10 million Lotto Max jackpot

No win in Friday night’s draw means the next Lotto Max draw will be approximately $17 million

Scientists ID another possible threat to orcas: pink salmon

For two decades, significantly more of the whales have died in even-numbered years than in odd years

Most Read