Badly wounded veterans shortchanged, report reveals - CTV News
"OTTAWA — Ordinary soldiers wounded in the line of duty, veterans with families and the most severely disabled of troops are the biggest losers under Ottawa's new system of compensating those who've laid down their lives for the country, says an independent analysis. . . . . "
" . . . The Disability Award payable under the (New Veterans Charter) does not appear to be sufficient to compensate for these differences in the majority of cases," said the exhaustive study.
Critics have long argued that the lump sum payout was too cheap and point to Britain where injured soldiers are offered tax-free payments equivalent to $929,000.
Veterans Affairs has argued that wounded soldiers receive other stipends in addition to the lump-sum payment, including earnings loss protection and income support. The Aon study factored in those additional benefits and the numbers still came out the same.
That's because, unlike the previous system, most of the new benefits are subject to income tax.
Soldiers permanently disabled in Afghanistan, by a roadside bomb as an example, must pay tax on their permanent impairment allowance, while the old system of exceptional incapacity allowance was tax-free.
The taxation erosion of benefits gets even worse when you factor in where the soldier lives. Those in highly taxed provinces, such as those on the East Coast, get slammed even harder, according to the analysis.
Female soldiers, since they have a tendency to live longer than men, are also hurt by the new system. . . . "
Badly wounded veterans shortchanged, report reveals - CTV News
"OTTAWA — Ordinary soldiers wounded in the line of duty, veterans with families and the most severely disabled of troops are the biggest losers under Ottawa's new system of compensating those who've laid down their lives for the country, says an independent analysis. . . . . "
" . . . The Disability Award payable under the (New Veterans Charter) does not appear to be sufficient to compensate for these differences in the majority of cases," said the exhaustive study.
Critics have long argued that the lump sum payout was too cheap and point to Britain where injured soldiers are offered tax-free payments equivalent to $929,000.
Veterans Affairs has argued that wounded soldiers receive other stipends in addition to the lump-sum payment, including earnings loss protection and income support. The Aon study factored in those additional benefits and the numbers still came out the same.
That's because, unlike the previous system, most of the new benefits are subject to income tax.
Soldiers permanently disabled in Afghanistan, by a roadside bomb as an example, must pay tax on their permanent impairment allowance, while the old system of exceptional incapacity allowance was tax-free.
The taxation erosion of benefits gets even worse when you factor in where the soldier lives. Those in highly taxed provinces, such as those on the East Coast, get slammed even harder, according to the analysis.
Female soldiers, since they have a tendency to live longer than men, are also hurt by the new system. . . . "
Badly wounded veterans shortchanged, report reveals - CTV News
