Compensating disabled veterans for the clawback of their military pensions could cost more than expected because the federal government is now considering retroactive payments going back almost four decades.
Internal government estimates have suggested the settlement could run to $600-million, a figure that may turn out to be low.
Late last week, lawyers representing ex-soldiers revealed that federal negotiators were still crunching numbers for the total compensation package and it was being “complicated by the fact the proposed amounts may go back to the start of the offset in 1976,” according to a letter obtained by The Canadian Press.
One veteran affected by the lawsuit said the federal government has only itself to blame.
“I can’t see it going to $1-billion, but if it does, the government was really stupid to let this go as long as it did over 40 years,” said Ron Cundell, a former sergeant and disabled veteran living near Barrie, Ont.