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

WATCH: Brother of missing Hope woman makes emotional appeal for more media attention

Next search for Shawnee Inyallie Nov. 18 along Highway 1 towards Boston Bar

Gas price drop expected to hit Fraser Valley today

Analyst says to take advantage, warns slight increase may follow

Chilliwack teen to take on the world after winning Canadian junior dog-handling national championship

Chilliwack’s Kayla Penney is heading to Crufts to compete for her first international title

Country talent Petunia returns to Bozzini’s in Chilliwack Saturday

Petunia, performing Nov. 17, is referred to as ‘The Savior of Country Music’

VIDEO: People with diabetes meet their alert dogs

A diabetic alert dog is trained to detect low blood sugar in people who have Type 1 diabetes

Offensive Facebook post by Okanagan Conservative riding sparks outrage

Post taken down after Conservative MP in neighbouring riding condemns it and demands removal

Friends describe murder victim as ‘most caring guy we knew’

Jagvir Malhi of Abbotsford was not involved in gangs or criminal activity, they say

John Horgan shrugs off low turnout, change to referendum option

‘No’ proportional representation group says voting should be extended

Two more government pot shops to open in Kamloops

Two private applications are also in the queue to come before city council by the end of the year

2 B.C. men charged after allegedly stealing $1,400 worth of butter

The two men, ages 23 and 25, are facing charges of theft under $5,000, Coquitlam police said

Invasive fire ants join the tourist swarms at Hawaii Volcano National Park

Invasive species found at popular tourist destination

Ten-year sentence for man convicted of B.C. belt-strangling death

Shayne McGenn guilty of manslaughter in 2016 death of David Delaney, 63

BREAKING: Metro Vancouver mayors cancel Surrey LRT in favour of SkyTrain

TransLink will immediately suspend work on light rail

Most Read