A retired Canadian Forces member from Gambo has returned his medals to Gov. Gen. Michaëlle Jean to protest the clawback of military pensions.
Robin Brentnall, a 23-year veteran of the Canadian Forces, retired last month after battling with various ailments, including a neck injury and stroke.
Because his injuries were the result of his job, the retired Sergeant is entitled to receive Canada Pension Plan (CPP) payments of $700 per month. His military pension is worth $1,700 a month, but the federal government deducts $700 from that because of his CPP payment.
Mr. Brentnall said he is unable to do heavy lifting, needs help writing, has trouble dealing with stress, and tires easily. When he gets tired, the right side of his body goes numb. Combining these factors, it is impossible for him to perform any sort of job, leaving him dependent on CPP and his pension.
The actions of Mr. Brentnall follow those of retired Cpl. Dennis Manuge of Halifax, N.S., who also returned his military medals to Gov. Gen. Jean. Mr. Manuge is leading a class action lawsuit against the federal government over the clawback issue affecting an estimated 6,500 veterans. In a letter to the Governor General, Mr. Manuge said the system has cost veterans $500 million.
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Just a quick tip for Robin and others like him in the same fix (he may be aware of the following info).
I take it that the military pension referred to is the one he paid into all these years. There is another one he may not know much about called a disability pension which he can also draw and it is tax exempt.
I didn’t know about it for almost a decade after I left the military but it turned out that I was injured during my years of service (hearing — a doctor in London, Ont put me onto it) and after about two years of fighting with them I won. As my age increased this pension increased to the point where it is now quite substantual and very welcome in my senior years.
If you need legal help with your claim it is provided free of charge through the Bureau of Pension Advocates (toll free number available at the link). You call and they look after everything once you sign a few papers for them.
I know about this because I’ve used them with my claim. If you’ve been hurt call them because you have nothing to lose and everything to gain.
I’ve been following this issue for quite a while. It has never been clearly explained and the best that I can figure out is that the way it is set up, is that when a military or rcmp member retires, part of their regular superannuation is cpp benefit. This is why there is a pension reduction at 65 when they are eligible for full cpp benefits. It was apparently brought about because the military and rcmp were paid so poorly when cpp was established that it would have brought undue financial hardship to charge the full superannuation and cpp rates. Thus the reasoning goes is that if there is no reduction then the retired members are getting a double dip.
A site called “Veterans Voice Info” is covering this situation and has lots of information pertinent to retired rcmp & military.
Regarding Veterans Affairs and the Bureau of Pension Advocates; I have mixed feelings about them. Although I do receive a disability pension for service related injuries, it was an extremely difficult and emotionally stressful process. As I’ve said before, they are there to limit Gov’t liability more than to provide benefits to the injured service person.
mid island mike
Further to the above comment, when the ccp was set up, the Gov’t tried to get the pension reduction for the public service unions as well but they stood their ground and refused during their negotiations. The CF & RCMP had it imposed on them by the Gov’t and are the only depts in the Federal Gov’t with the reduction. Members of Parliament and all others have no reduction, just the RCMP & CF.
The Gov’t likes to say how much they support the CF & RCMP but in my mind they need to prove it by their actions.
I have been unable to work since my medical discharge in 1995. By the time I reach 65, in 10 years I don’t know if my CPP benefit will be enough to cover the reduction so I may not even break even on this.
mid island mike
Mike is on the right track. When I turned 65 I took a $500.00 monthly hit on my pension. Why it happened I don’t know. Still trying to think of a way I can claw it back.
I had a fellow from the Conservative party call me (twice) and try to reassure me that there was in fact no clawback and that anyone who says there is doesn’t know what he talking about. When I tried to explain it as I saw it, and lived it, he just brushed me off that I don’t understand because I’m not a professional in pensions plans and their administration.
As I recall, we were getting regular updates via routine orders on how the negotiations with treasury board were going. On the table were the pension clawback and the unemployment insurance after release. On both counts it came down against us ( I assume the RCMP also) and we were told that is the way it will be and to essentially shut up and carry on, we cannot draw EI after release even though we pay into it for 20+ years and upon claiming CPP we would lose half our pension but we would gain overall by a couple of hundred buack at the end. The gentleman from the Conservative party told me (politely) that that was not how it happened. As he was an “expert at pensions and asset management”, he then went on the bridge financing version of things.
Apparently Mr. Stoffer, an NDP MP, has put through a bill that would recitify the clawback and it has passed but I was assured that the government will NOT finance it therefor rendering it dead.
And so my superiors were right. The (Liberal) government of the day and now the Conservative government did (and do) what they want and even though we may be retired soldiers we are expected to shut up and take it on the chin for Her Majesty.
I wish the same applied to our MPs.
I wonder if the politicians get the same “clawback” from their pensions? Somehow, I doubt it…
guys you are way off base with this. The issue is about the reduction of SISIP Long Term Disability payments (income replacement) being offset by the total amount of Veterans Affairs disbility pension act payments (tax free not income) based on level of disability for pain and suffering, hence the clawback.
see below for clear explanation:
The Class Action was initiated in March of 2007 on behalf of me, Dennis Manuge, and all other disabled veterans who’s SISIP Long Term Disability Benefits are reduced by the amount of the monthly VAC Disability Pension they receive under the Pension Act.
On May 20, 2008, the Federal Court of Canada certified the claim as a Class Action and defined the Class as follows:
All former members of the Canadian Forces whose long term disability benefits under the SISIP policy number 901102 were reduced by the amount of their VAC disability benefits received pursuant to the Pension Act from April 17, 1985 to date.
Respetfully
Dennis Manuge
The CPP age 65 clawback is totally unrelated tou our issue.
There is a huge campaign regarding fixing that as well. Google it for more info. Mr. John Labelle is heading it up, Bill C201
I am also a retired member who is on dissability payments from both SISIP and disabbility pension. i know from month to month how hard it is to survive, what i want explained to me is how i can pay into a military pension,sissip and cpp. but not able to recive all that is owed to me. im a taxpayer..
It’s amazing how stories I post come back to haunt days later but I just checked my stats and people are interested in this argument today so I will tell an old story once again.
Tom Clancy wrote a book where he went into great detail about the US income tax code ( Canada is little different). He described a Senate committee room and a table in front of his character. He went on to detail how clerks piled up hard copies of the code on the table and how (as the ficticious character was about to give his presentation) the table collapsed under the weight of it all.
His character then noted that NOBODY (including the Judges who are required to enforce this law) had the least clue what was in the documents. And then the character hammered the Senators regarding “ignorance of the law is no excuse” and asked how any normal taxpaying citizen could possibly hope to understand everything.
I’ll add something to that observation.
How is it possible to understand everything in our tax laws when three levels of government are playing with and changing it without public notice every second day as the mood strikes them?
It seems to me that our tax law is much like our brains. One level built upon another as we “progress” and it just gets more complicated everyday as we continue to pile mistake upon mistake.
Therefore the reason I feel it should all be trashed and we should start anew with a flat tax that everyone can easily understand. This bullshit has been going on all my working lifetime and if Harper really wants to make a name for himself that is where he needs to start.
Just my view.
Agree Jack and while we’re at it, stress consumption taxes versus income taxes which impair savings and investment.
Ohh .. and harmonize GST and PST as McGuinty is doing. But do it in way that isn’t a tax grab on the new items hit, do the math and level or neutralize the take.