Vet pension battle, Ottawa discriminates

[Tonington]

CALGARY -- Ottawa's pension clawback for retired soldiers and Mounties is coming under increasing attack from an army of disgruntled ex-servicemen and their supporters.
Former Canadian peacekeeper and Airdrie resident David Ward is leading the charge, saying veterans are getting the shaft while politicians and federal bureaucrats are exempted.
"Some of these people on a fixed income can't afford to lose $500 a month," said Ward, who served with the Princess Patricia's Canadian Light Infantry for 28 years, until 1996.
The discrepancy results from the fact that when soldiers and Mounties retire after more than 20 years of service, their pensions are fixed until a retiree's age and years of service add up to 85, then they are indexed and increase yearly.

'DISTURBING'

But at age 65, the Canada Pension Plan kicks in, and the amount of CPP they get is clawed back from their military or RCMP pensions.
"It definitely discriminates - they remember us on Nov. 11 and that's it," said Ward. "It's very, very disturbing."
Ward, 62, was referring to 1966 legislation that integrated RCMP and military pension plans and laid the groundwork for the clawback.
Politicians have been pressured over the years to eliminate the clawback but the reality outlives each change of government, said Ward, who says he has post-traumatic stress disorder and physical ailments linked to his service.
"It's the same as them promising to get rid of the GST - once they're elected they forget about it," Ward said.
Though he receives both a $1,700 a month military benefit and a veterans' disability payment worth $2,000 a month and is eligible in three years to receive CPP, Ward insisted the clawback is still unfair, particularly given politicians' generous pensions and one-third tax-free status.
He's encouraging Canadians to flood MPs with e-mails and letters.

http://www.edmontonsun.com/News/Alberta/2008/07/13/6143566-sun.html

Is any soldier's contribution to Canada worth less than an elected official's contribution? Doesn't seem fair to me either.

 

[tracy]

I don't understand how they will be losing money. Are they taking more out of their pensions than the CPP they'll receive?

This will affect my dad in September when he turns 65. He retired almost 10 years ago after more than 30 years with the RCMP. His pension is something most workers couldn't even dream of. I remember specifically my first year as a nurse when even with overtime I made less than his pension. My parents were smart with their money, saving in RRSPs and paying off their house early, but even without any of their investments they'll survive just fine thanks to my dad's pension.

 

[Tonington]

They're clawing back the CPP, not the pension from their service in the RCMP or CF's. The point is, why should they lose benefits on money's already spent over a lifetime of working? Planning for retirement only to have benefits clawed back? Doesn't seem right to me.

 

[CDNBear]

This is nothing new Ton...I'm looking forword to it too.

My Father went through it, my Grand Father.

It's the way it is. Wrong mind you, but the way it is.

 

[tracy]

They're clawing back the CPP, not the pension from their service in the RCMP or CF's. The point is, why should they lose benefits on money's already spent over a lifetime of working? Planning for retirement only to have benefits clawed back? Doesn't seem right to me.

Then they aren't losing money, they just won't be getting more money. The legislation dates back to the 60s, so it shouldn't be a shock to any of them. I don't think it's necessarily fair, but CPP isn't coming from a limitless account. I don't see it surviving forever if it goes to everybody regardless of need and they get very good pensions compared to most Canadians. It's hard for me to feel really sorry for them when I know that. I can't speak for the military, but I know the RCMP benefits are REALLY good. My brother could retire like my dad at 55 and live very comfortably. There are few jobs where that's even possible. My retirement is going to be basically funded by my own savings, not much of an employer's contribution and I don't count on CCP or US social security even existing by that time.

 

[darkbeaver]

Will federal pensions survive hyperinfation? What will a depression do to the value of a federal pension?