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Ottawa ends clawbacks of veterans' pensions

Canada's Department of Veterans Affairs has ended its policy of clawing back the benefit payments of disabled soldiers, sailors and aircrew - a move critics say has been far too long in coming.

Canada's Department of Veterans Affairs has ended its policy of clawing back the benefit payments of disabled soldiers, sailors and aircrew - a move critics say has been far too long in coming.

Effective immediately, the federal government will no longer deduct the amount of a veteran's pension from benefits for lost earnings and Canadian Forces income support, which were introduced in 2006 under the New Veterans Charter.

Veterans Affairs Minister Steven Blaney made the announcement Wednesday at a news conference at Val-cartier Garrison, outside Quebec City.

"We have worked quickly to make these changes to put more money in the pockets of veterans and their families, including some who haven't been receiving these benefits until now," Blaney said.

The move is a consequence of last spring's Federal Court ruling, which rejected the clawback of disability benefits from eligible veterans in a case waged against the Department of National Defence.

Back in July, Defence Minister Peter MacKay ended the deduction for most disabled soldiers, but it took a special cabinet order passed just recently to get the measure enacted for those affected under the veterans affairs system.

Ending the clawback immediately will cost the federal treasury $177.7 million over the next five years. Depending upon the severity of the injury and whether they receive the earnings loss or the income support benefit, the change could mean between $1,100 and $1,500 per month to individual veterans.