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

Eckville Aces senior boys basketball crumbles to the Knights

The Aces came out with a 99-54 loss to CACHS on Jan. 15

Eckville Aces senior girls fall to CACHS at home

The Aces trailed 63-42 at the final buzzer on Jan. 15

Hope restored: Sylvan Lake resident receives kidney donation from younger sister

Sylvan Lake’s Lexie Libby undergo an operation for a new kidney, donated by her sister Emma.

Anglers reminded to register ice huts on Sylvan Lake

Lacombe County is reminding anglers to register their huts with the “Take it Off” program

WATCH: Pro-pipeline convoy travels through Sylvan Lake

Over 600 vehicles drove the route from Red Deer and back on Jan. 12

UK lawmakers reject Brexit deal in 432-202 vote

House of Commons votes against the deal struck between Britain’s government and the EU

Theresa May wins no-confidence vote after Brexit deal rejection

UK PM can keep her job, after House of Commons voted 325-306

Liberal candidate steps aside after singling out Jagmeet Singh’s race

Karen Wang says she made comments online that referenced Singh’s cultural background

Alberta doctor accused of sexual assault asked to voluntarily give up practice

College says Dr. Barry Wollach should discontinue his practice, given the seriousness of the allegation against him

Red Deerians can weigh in on proposed Bighorn Country investment tonight

Telephone town hall takes place 6:30 to 7:30 p.m.

Defending champions Team Scheidegger will fight to keep title

Stettler hosting 2019 Alberta Scotties provincial women’s bonspiel

WATCH: World-renowned illusionist, magician, escapist performs in Stettler

Matt Johnson performs two sold-out shows at Stettler Performing Arts Centre

Olivia and Liam top list for Alberta baby names in 2018

Premier Rachel Notley announced the top baby names in Alberta in 2018; Loki didn’t make the cut

Edmonton Police charged 236 people with auto theft in 2018

Police states many of the thefts are crimes of opportunity

Most Read