Understanding Retirement and Disability Benefits: A Review

Message from the Ombudsman | 31 October 2018

 

Thirteen years ago, a group of former members of the Canadian Armed Forces and Royal Canadian Mounted Police began raising concerns publicly about their respective pension plans and how they interact with the Canada Pension Plan Retirement Pension.

The group, now known as the “CAF and RCMP Veterans Against the CPP Annuity Benefit Reduction at Age 65”, have raised six distinct concerns pertaining to the pension plans themselves, as well as how they are viewed independently and jointly in the eyes of Canadian tax law. While there has been a flurry of activity, including private members’ bills tabled by opposition Members of Parliament and a sustained letter-writing campaign to responsible Federal Cabinet Ministers, no clear answers or clarifications have been offered to this group from the Department of National Defence, the Canadian Armed Forces, or other government departments.

In 2015, the group reached out to our office seeking analysis of their six main points. In early 2018, our office decided to undertake this analysis, to help provide answers to a group that has been growing increasingly frustrated with the lack of response from government. Earlier this month, our office sent a copy of our findings to the Minister of National Defence for consideration.

This is not a typical report from our office stemming from a large-scale systemic investigation. However, our office has found that one of the six issues could be addressed in a very meaningful way by the Department of National Defence. The remaining five issues, outlined in annexes in the report, provide clarification to this group. Some of these issues, while not mandatory for the government to take any action, could be addressed by the government through legislative or regulatory change. However, it is not the mandate of this office to make recommendations for such changes.

Our office would like to thank the members of the “CAF and RCMP Veterans Against the CPP Annuity Benefit Reduction at Age 65” group. It is our hope that this paper is of some benefit to former members of the Canadian Armed Forces and Royal Canadian Mounted Police as well as key decision-makers in government.

 

Gary Walbourne
Ombudsman