Chronology of Events - Service Income Security Insurance Plan – Unfair Deductions from Former Canadian Forces Members
January 2013
Context
Since it was established in 1998, the Office of the Ombudsman has received over 50 complaints relating to the administration of the Service Income Security Insurance Plan (SISIP) long term disability coverage and benefits available to Canadian Forces (CF) Regular and Reserve Force members. Injured CF veterans long-term disability benefits were routinely reduced because of disability pensions received under the Pension Act. The Office of the Ombudsman sought to rectify this injustice. A timeline representing the Office’s involvement is outlined below.
Chronology of Events
| Date | Event |
|---|---|
| November 7, 2000 |
The Office receives a complaint from a former CF Member. This complaint is used as a framework for its investigation into the SISIP long term disability insurance plan and insurance benefits available to CF members. The Office conducts a thorough investigation. |
| August 27, 2003 | Ombudsman André Marin provides Minister of National Defence, the Honourable John McCallum, with the Ombudsman’s special report, Unfair Deductions From SISIP Payments to Former CF Members. |
| October 8, 2003 | The Ombudsman’s Office releases its special report: Unfair Deductions From SISIP Payments to Former CF Members. |
| October 30, 2003 | Ombudsman André Marin appears before the Standing Committee on National Defence and Veterans Affairs to provide a briefing on SISIP. |
| November 4, 2003 | The House of Commons Standing Committee on National Defence and Veterans Affairs unanimously passes a motion imploring ‘the Defence Minister and government to accept and enact the recommendations [in the Ombudsman’s report] forthwith.’ |
| October 26, 2005 | Ombudsman Yves Côté writes to Minister of National Defence the Honourable William Graham highlighting the unfair treatment faced by our veterans and strongly advising him to take immediate action. |
| May 2006 | The Department of National Defence informs the Ombudsman’s Office that the total cost to implement the two outstanding recommendations in the special report is estimated to be $320 million, much higher than the Office had been told during the investigation. |
| June 2006 | Ombudsman investigators meet with the president of SISIP in order to obtain an explanation of the original estimate of $5 million provided to the Ombudsman’s Office by SISIP officials, and the latest estimate of $320 million. |
| October 2006 | The Office of the Superintendent of Financial Institutions reviews the estimates and informs the Ombudsman’s Office that the cost of eliminating the Pension Act deductions from SISIP LTD monthly benefits, retroactive to October 20001, would be between $275 and $295 million. |
| November 7, 2006 |
The House of Commons passes the following motion: That, in the opinion of the House, the government should immediately take the following steps to assist members and veterans of the Canadian Forces and their families: … |
| November 22, 2006 | Ombudsman Yves Côté appears before the Standing Committee on Veterans Affairs and provides a brief update on SISIP. |
| March 6, 2007 | Ombudsman Yves Côté writes to Minister of National Defence the Honourable Gordon O’Connor regarding two outstanding recommendations from the special report. The Ombudsman urges the Minister ‘to look at all reasonable solutions that may be available to finally address and resolve this fundamental unfairness.’ |
| March 15, 2007 | Mr. Dennis Manuge files a class action lawsuit on behalf of SISIP claimants, challenging provisions of the long-term disability insurance program offered to CF members through SISIP. |
| June 3, 2007 | Minister of National Defence, the Honourable Gordon O’Connor, writes to Ombudsman Yves Côté stating he is unable to comment on the two outstanding recommendations from the special report, Unfair Deductions From SISIP Payments to Former CF Members because the matter is now before the courts. |
| June 15, 2007 | Ombudsman Yves Côté writes to Minister of National Defence, the Honourable Gordon O’Connor, urging him not to allow the court proceedings to be a reason to avoid swift action. |
| September 25, 2007 | Ombudsman Yves Côté meets with the new Minister of National Defence, the Honourable Peter MacKay, encouraging him to take immediate steps to put an end to the deductions and provide retroactive payments. |
| October 4, 2007 | Message from the Ombudsman providing an update on the unfair deductions related to SISIP. |
| June 18, 2008 |
The Senate Standing Committee on National Security and Defence reconfirms the findings of the Ombudsman in their tenth substantive report: Report on Reductions of Service Income Security Insurance Plan Long Term Disability Benefits; An Interim Report of the Subcommittee on Veterans Affairs concluding that the practice was unfair. The report states: The DND and CF Ombudsman’s Special Report of October 2003, presents an in-depth study of this issue and we are pleased to note that it comes to the same conclusion as we have. It too judges the SISIP LTD reductions to be unfair. The Ombudsman’s report delivered five recommendations, three of which have been implemented. Regrettably, DND has chosen not to move ahead with the two principal recommendations that call for an immediate end to SISIP LTD reductions and the reimbursement of Veterans who were subject to such reductions since 2000. |
| May 2, 2012 | The Federal Court of Canada finds the clawback of benefits to veterans injured on duty is illegal. |
| May 29, 2012 | The Federal Government announces it will not appeal the Federal Court of Canada ruling that rejected clawbacks from the pensions of disabled veterans. |
| May 29, 2012 | Ombudsman Pierre Daigle welcomes the end of the clawback of disability benefits from Canada’s Veterans. |
1 This is the date on which all serving CF members became entitled to collect VAC disability pensions while still serving, regardless of where their injury occurred. Before that date, only those injured in a special duty area were entitled to collect the tax-free disability benefit while still serving and collecting a salary.
- Date modified:
