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Military/RCMP Veterans

Against Annuity

Benefit Reduction at Age 65

Bill C-201

Regretfully; Bill C-201 died on the order paper at the committee level, Standing Committee on Veterans Affairs,  at 10:00 am, 17 Nov 09. 

Where do we go from here? A battle lost, but it is not over yet! Mr Peter Stoffer, MP, best describes what comes next.

Dear Friends,

 

Bill C-201 was defeated today by Conservative and Liberal members of the Standing Committee on Veterans Affairs (ACVA).  At the committee, Conservative MPs voted against the bill, Liberal MPs abstained, and the Bloc Quebecois and the NDP supported it.  Unfortunately, the lack of support by the Conservatives and Liberals means that Bill C-201 will not be going to the House for third reading and is effectively dead. 

 

As you know, Bill C-201 aimed to eliminate the unfair benefit reduction of retired and disabled Canadian Forces and RCMP service pensions.  Opposition members did not support the bill because of the supposed financial cost of implementing the bill.  The government suggested that eliminating the deduction at age 65 (or earlier if disabled) would be cost prohibitive.  While I suggested that a variety of options exist to offset these potential costs, Conservative and Liberal MPs did not agree to move the bill forward. 

 

While I am disappointed that the bill was defeated, we did have some success along the way.  The issue became national in scope under the great leadership of John Labelle, Roger Boutin, and Mel Pittman.  They coordinated a campaign to end the claw back that gained the support of over 110,000 individuals.  As well, several major veterans organizations including the Royal Canadian Legion (500,000 members), the Army, Navy & Air Force Veterans in Canada Association (20,000 members), and the Air Force Association in Canada (12,000 members) expressed their support for this initiative.  And, at the Standing Committee on Veterans Affairs, we were successful in convincing CF and RCMP pension administrators that more communication is needed about how and why service pensions are reduced at age 65 or earlier.  We were also successful in showing the committee that we need to take a serious look at how CF and RCMP members receive CPP disability payments.

 

I would like to thank John Labelle, Roger Boutin, and Mel Pittman for all of their work over the last four years.  I also want to thank every single person who called, emailed, or wrote their Member of Parliament about the unfair reduction of their service pension.  It is through your hard work that the bill passed second reading and made it to the committee stage.

 

As the New Democrat Critic for Veterans Affairs, I will continue to work on ways we can correct this injustice of behalf of our veterans and their families.  I plan to re-introduce the bill in the next Parliament (after the next election) and will continue to press the Conservative and Liberals MPs to support this bill.

Thank you again for your tremendous interest and undying support for Bill C-201. 

 

Sincerely,

 

Peter Stoffer, MP

Sackville-Eastern Shore

2900 Hwy #2 Fall River, NS B2T 1W4

Tel:  (902) 861-2311  Fax:  (902) 861-4620

Email: stoffp0@parl.gc.ca

Bill C-201 originated through the hard work of one particular veteran organization, Military/RCMP Veterans Against Annuity  Benefit Reduction at Age 65. This organization has been long involved in correcting this deficiency. From the start and throughout the campaign,  the organization have been transparent and forthcoming, receiving wide support from veterans and other Canadian citizens as well as notables. Their latest campaign revised edition can be found here  https://veteranvoice.info/ARCHIVE/news_08novAge65ClawbackCampaignpaper.pdf.

Prior coming to this committee, the Bill had to be passed by the House. On 13 May 2009, House of Commons MPs voted on the 2^nd reading/vote of Bill C-201. It was carried  by 139 'Yea' to 129 'Nay'. The vote was distributed as below;

As Bill C-201 passed this stage, it then had to move to a committee, Committee for Bill C-201, through the Standing Committee On Veterans Affairs.

An extract of a letter/brief sent to Mr. David Sweet, MP, Chairman Committee for Bill C-201, by Mr John Labelle, best describes the issues that were and, unfortunately still remain deficient:

"...Bill C-201- An Act to amend the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act. (Deletion of deduction from Annuity)

 

On behalf of Mr. Roger Boutin, Mel Pittman and numerous Committees across Canada, I wish to thank you for the opportunity to speak to the Committee of Veterans Affairs regarding Mr. Peter Stoffer, MP Bill C-201.

 

The purpose of this initiative is to convince the Prime Minister of Canada to take action to terminate the Benefit Reduction formula that is being applied to our Military/RCMP Veterans Annuities when they attain age 65, or sooner if they become disabled. The Government of Canada must right a wrong by amending the CFSA Act and the RCMPSA Act of a miscalculation in justice and fairness that now affects our retired Veterans and their families during their golden years.

 

The 2006/07 annual pension Report indicated that they were 84,728 Military pensioners and 12,331 RCMP pensioners. The total cost for CF Vets pension benefits was 2.2 billion dollars and the cost of the RCMP pensioners was $451 million dollars. It is estimated that the termination of the CPP benefit reduction program may affect 50,000 pensioned Veterans. 

 

You are aware that the Canada Pension Plan was introduced in 1965/66. Its intention was to provide another source for an “Income security” program supplementing Old age security. Military/RCMP Veterans maintain that in 1965/66 the Government of Canada has deliberately or otherwise imposed on Military/RCMP personnel a gross injustice and unfairness by merging rather than stacking their Pension contributions and benefits and not providing any options to them.

 

CFSA Facts:

 

On January 1, 1966 the Canadian Forces employee’s contribution rate was reduced from 9.3% to 7.5%. Hence, a “so called” reduced Annuity contribution to our CFSA has accumulated a Military Annuity surplus of over 20 Billion dollars. It clearly indicates that contributions to the CFSA are sufficient to pay for our benefits without a reduction clause.

 

CPP Facts:

 

With regards to the CPP, the employee and the employer each paid half of the required contributions. In 1966, the Government levied rate of contribution for Military personnel was 1.8% of basic earnings. Over the years, the rates substantially increased to 4.95%. Military/RCMP personnel have always made the required maximum contributions to the Plan. Recently the President and CEO of the Canada Pension Plan Investment Board advised that the CPP fund is fiscally healthy with a surplus of 120 billion dollars.

 

It is a known fact that Veterans were dealt with in a negligent fashion! In those past years, Senior Military Officers were not appointed Assistant Deputy Minister to represent them. Veterans were not properly briefed on the pitfalls associated with the merging of their contributions. In short, democracy did not occur, they were not given any options. They always made the required maximum contributions. Veterans contributions were listed separately on their pay guides, therefore, given them a false sense of financial security.

 

The words of Bridge Benefits are not listed in the manual A-FN-109-001/ID-001 and furthermore the manual was never made available to serving personnel. The bridge benefit term is a miff that was never heard of prior to the establishment of our Campaign of pension justice and fairness. At age 73 the Government has recovered all of its funds and yet continues to collect a 30% gratuity/penalty for the rest of their lives.

 

Veterans are getting “100% of what they paid for” Well they are sure not getting what they paid for, otherwise their pension plan would not have accumulated over 20 billion dollars surplus.

 

 With all due respect, Veterans and their Families have given far more of themselves than any other segment of the population to the security of our Country, therefore in their golden years they deserve to be treated with Fairness, Justice and Dignity.

 

Military/RCMP Veterans were a distinct, different Government provider, who has encountered a varying number of issues on a regular basis! What financial values can we associate to the following statements?

 

• Loss of Spousal income opportunity, therefore loss of Spousal CPP benefits;

• Loss of overtime revenues with the loss of Member’s second income opportunity;

• Loss of ability to purchase a home and be mortgage free during a career;

• Veterans are a distinct Government provider, they served far abroad on numerous 24/7, 16 hour days of operational requirements;

• Veterans often faced dangerous conditions. Health hazards, extended Family separation with elevated levels of stress; and

• Canadian Forces/RCMP personnel were prepared to give the ultimate sacrifice to our Country Canada.

 

Depletion of CFSA surplus funds:

 

The Government of Canada has withdrawn 16.5 billion surplus dollars from the Military Annuity funds to pay down the National debt. Take note that the 2003-2004 report indicated that a further 630 million surplus dollars was also retired from our Pension account. The 2004-2005 Pension report indicates that no funds were “withdrawn” from the account and that there was a surplus of 1.099,013,000 billion dollars recorded in that year. Surplus Pension funds have accumulated and were sufficient to pay for the termination of the Veterans CPP benefit reduction formula.

 

“Why are Pensioner’s indexing revenues reduced at age 65?”

“Why are Disabled Veterans Pension reduced?”

“Why reduce Disabled Veterans Pension indexing revenues?

“Why establish the CPP plan if it benefits no one?”

 

Suggested solutions:

 

How to solve the Pension Benefit reduction issue that affects over 50,000 Veterans at age 65.

 

1.      Stop depleting the surpluses in our Pension accounts;

 

2.      In order to stabilize the depleted surplus funds in our Pension accounts, transfer 15% of Serving Personnel contributions from the Employment Insurance account to our Pension accounts, as we receive no benefits from the EI account;

 

3.      Eliminate the Pension reduction formula to Military/RCMP Veterans Annuity when we attain age 65 or sooner if they become disabled;

 

4.      Retroactive payments are not requested.

 

Endorsement of the Campaign:

 

We have received very positive comments of support from our Former Senior Officers. They included: Major-General (ret’d) Lewis MacKenzie, Colonel (ret’d) Don Ethell, Commodore (ret’d) David Cogdon, RCMP Deputy Commissioner (ret’d) Larry R. Proke, Mr Bill Gidley, Executive Director, RCMP Veterans, Chief Warrant Officer (ret’d) John Marr, former CF Chief Warrant Officer, LT (N) (ret’d) Joe Fillion, former Maritime Command Chief Petty Officer, and Chief Petty Officer, first class (ret’d) D.H. Brown, former Maritime Command Chief Petty Officer.  A great number of Senior Officers have clearly supported the initiative that Military and RCMP Veterans have been mistreated and that the situation needs to be rectified. This worthwhile initiative continues to grow; over 112,500 Supporters have pronounced their support. Approximately 500,000 members of the Royal Canadian Legion, The Army Navy and Air Force Veterans (ANAVETS) of Canada (20,000 members), and The Air Force Association in Canada (12,000 members) adopted resolutions at their Annual General meeting in 2006 in full support of our initiative. The late Captain Ed Halayko, National Chairman of the Armed Forces Pensioner’s Association of Canada and the new National Chairman of the AFP-AAC CWO (ret’d) AE (Tony) Huntley support our initiative. We have received support regarding our Mission from Mrs. Lillian Morgenthau, Founder and President of CARP (Canada’s Association for the 50 plus). Numerous other Military Associations have declared their support of the Objective. We also have received the support from Veterans living in 18 Countries. “Veterans from England, Mexico, Germany, CYQQ Forces, Florida, Warsaw Poland, Syrian Arab Republic, Greece, UK, USA, Cayman Island, Afghanistan, South Africa, Iraq, Thailand, Sarajavo Bosnia, Italy, and Japan.”

 

Conclusion:

 

It is time to put the politics aside and for all Members of Parliament to demonstrate their recognition and appreciation, in a tangible way, to the men and women who have served and are currently serving our country. Take action to terminate this undemocratic, unfair and unjust treatment of Veterans and terminate this pension benefit reduction that has been imposed on them without fair and open consultation. This misguided policy violates the principal of democracy, fairness and justice as it affects the welfare of Veterans and their Families in their Golden Years. The Committee is requested to send Bill C-201 back to the House of Commons for it’s 3^rd and final debate and vote. All Leaders of the House are requested to allow the democratic process to take place   by permitting Members of Parliament to vote freely when Bill C-201 is presented to the House of Commons for it’s final vote. Military/RCMP Veterans have gallantly served Canada! They deserve nothing less than to spend their Golden Years with the Pension Financial Dignity they and their Families have earned and paid for in so many different ways and so fairly deserve. It has been over 40 years and now is the time to resolve this Military/RCMP Veterans pension issue. This issue affects our disabled and the lower ranks of Veterans the most..."  

 

Unfortunately, 17 Nov 2009 marked the date that the committee vote killed Bill C-201 for this session of Parliament. As already indicated, Mt Stoffer planes to resurrect this private member's bill again following a federal general election. Perhaps the battle next time will be won by the Veterans.

John Labelle , coordinator of the campaign against the Reduction at Age 65, Speaks Out! For a pdf copy click here.

VVi Publisher Note: On behalf of the VVi staff, we would like to thank Mr Peter Stoffer for his dedication, persistence, patience, democratic responsibility that he demonstrated time-and-time again in this battle. His work on our [vets] behalf will be remembered by veterans. Thanks, Peter!

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