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Military Blog Site - with Robby McRobb Blog

Words from a Wise Journalist ref: Veterans Pension Clawback /Welcome Home HMCS Charlottetown

Welcome home to the crew of HMCS Charlottetown. Enjoy your leave. Thankyou for a job well done.

Once again I would like to share a very important issue with you. Veterans and the infamous CLAWBACK of pensions. The first letter is from an old buddy of 1Tpt Days in Germany way back in 63. Don Cappler is a retired Sgt Major of the RCASC.

This article is by Peter Worthington a reknowned Canadian Journalist. checkCookie();

Retired soldiers get the shaft

By PETER WORTHINGTON

Rarely has Canada been so attuned to the welfare and needs of serving military people and veterans, with appreciation is expressed on every occasion -- in words, if not deeds. Certainly for those killed or wounded in their country's name.

However, amid the rhetoric an injustice is being perpetrated on veterans in the form of a pension clawback that the federal government refuses to correct, ignoring its own extravagant praise for our troops.

When a soldier retires after 20-plus years of service, his pension is fixed until the magic number of 85 (his age plus years of service), then it is indexed, increasing every year.

At age 65 the Canada Pension Plan (CPP) kicks in -- and the amount paid, is deducted (clawed back) from the retired soldier's income. That means his military pension, to which he contributed part of his pay while in uniform, is reduced by whatever his CPP is -- to which he also contributed.

In other words, he contributes to the CPP, but gets no benefit.

As well as the Canadian Forces personnel, the clawback also applies to retired RCMP officers. Efforts, such as petitions and appeals to MPs and to the Veterans Canada ombudsman, are under way to correct the 1965 clawback law for the military. But so far, the government is unresponsive, with mostly the NDP (notably Peter Stoffer, NDP MP for Nova Scotia's Sackville-Eastern Shore) interested in changing the law.

Retired soldiers point out that theirs is the only government job that requires 24/7 readiness, with no overtime, yet ever-ready to risk life and injury when asked to do so. Ignored is that so many pay a double premium with no pension benefit.

Donnie Cappler, a retired sergeant major with 25 years service is a case in point. He joined at age 17 and retired at age 42 on $1,219 a month. When he turned 60 in 2003 his pension was indexed to $1,913.

He points out that when the clawback occurred at age 65, his military pension was reduced, thus affecting the indexing which resulted in less income than he received before being entitled to Old Age Security (OAS).

Cappler says when he turned 65 (in February, 2008) and the CPP kicked in, his original pension of $1,219 was reduced to $1,008 a month and even with indexing and CPP added, there was an overall drop in his income of $340 a month.

He points out that MPs, after six years, get a fully indexed pension and at age 65 MPs' pensions are not clawed back. Why is this? he asks. It seems strange that both the politicians and the military work for the same government, yet there are different rules when it comes to pensions.

Welcome to reality, Donnie. MPs look after themselves first. Always have, always will -- look at their lavish pension and pay raises.

CAMPAIGN FOR CHANGE

Jean Labelle is a retired Master Warrant Officer from Nova Scotia who also campaigns for change to the clawback perversion. He points to a Pension fund surplus that could easily pay for pensions, and scolds against the CPP mandatory deductions that don't benefit retired soldiers.

A retired Chief Warrant Officer gets less after his pension than a trained private gets today, he says. His appeals to Veterans Ombudsman, retired Col. Pat Stogran of Afghanistan fame, led to naught. Stogran responded that as a retired soldier he agreed that dumping the clawback was a worthwhile initiative . . . (but) I do not think it would be appropriate for the Office of the Veterans Ombudsman to do so.

Hmm. Others might say it's exactly what the Ombudsman should do.

The Government is treating Retired members like third world citizens...Wake up Prime Minister and correct this tragedy.

Islanders Please mark your Calendar 29 May 08 Red Rally.

Nil Sine Labore

Robby

Comments

  • Username
    Carl Cromwell
    - October 23, 2011 at 14:30:05

    As a retired member of the army i have just read these issues.I will be faceing this delima in three year's as i turn 65.I now receive a CFSA pension,bank of canada pension and my reduced cpp as i took it at age 60.I have read that the cpp will not be effected but my CFSA AND BANK PENSION will be reduced.Can anybody tell me by how much.I voted conservative last election but,maybe next time i will vote NDP

    Submit a Comment

  • Username
    Canadian
    - June 29, 2010 at 08:50:47

    This should be added as well for the proper information from The Royal Canadian Legion

    The following letter was written by Jack Frost, Dominion President RCL Dated
    6th of May, 2008

    You may be interested in this LEGION letter just mailed to the Minister of
    National Defence concerning clawback of our CFSA benefit....
    6 May 2008 File: 82-7-2

    The Honourable Peter Gordon MacKay, P.C., M.P. Minister of National Defence
    National Defence Headquarters
    101 Colonel By Drive Ottawa, ON K1A 0K2


    Dear Minister Mackay:

    I would like to share with you my grave concerns about an issue of fairness
    regarding the claw-back of a portion of the Canadian Forces Superannuation
    (CFSA) benefits when a retired Service member starts collecting Canada
    Pension Plan (CPP) benefits at age 65. As you are aware, this issue has been
    and continues to be discussed at length in various fora, including
    Parliamentary and Senate committees.

    From a Legion perspective, the issue is simple. Canadian Forces (CF) members
    are special Canadians who volunteer under exceptional terms of unlimited
    liability to serve their country and, in doing so, put their lives at risk.
    CF members were never asked if they wanted a stacked approach to CFSA and
    CPP benefits. It is acknowledged that the implementation concept was
    explained with the CPP introduction in 1966, but the reality is that the
    stacked approach has not resulted in a fair and equitable pension return
    to military personnel.

    Under normal circumstances, as in private industry, the combined separate
    CPP and Defined Benefit Plan rates as paid by employees rarely exceeds that
    rate paid by Service members for their CFSA plan. But, these civilian
    employees receive their CPP benefits in addition to those paid under their
    Defined Benefit plans. This is not the case with Service personnel. The
    claw-back of a portion of the member's Superannuation benefit at age 65 is
    unfair and imposes a burden on many of those who depend fully on their
    pensions including any additional CPP benefit that would normally have been
    obtained. Moreover, the exceptionally high CFSA contribution rate paid by
    Service members has resulted in plan surpluses which have not been shared
    with the members. The situation is compounded by the forced payment of
    Unemployment Insurance during the member's career with no authority to draw
    the insurance on retirement. Another injustice.

    I urge you to speak up for the many loyal and devoted veterans of the
    Canadian Forces who have dedicated their lives to the service and defence of
    Canada and who now face this demeaning and unfair reduction in
    superannuation. The payment of CPP should not be considered as a plug to
    fill the claw-back gap but as an additional benefit which has been paid for
    in contribution rates and earned in unparallel service. The cancellation of
    the CFSA claw-back at age 65 would be welcomed most gratefully by serving
    personnel and veterans alike and would reflect your government's high
    esteem, respect and gratitude for their commitment and years of loyal
    service.


    Sincerely,


    Jack Frost Dominion President

    cc: The Right Honourable Stephen Harper, P.C. Prime Minister The Honourable
    Greg Thompson, P.C. M.P.

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