Canadian military personnel due to retire in the near future will face delays in receiving their retirement benefits, unpaid wages and accrued vacation pay, the Ministry of National Defence has confirmed.
There has been anxiety and confusion among veterans for weeks after notices sent to soon-to-be-retired members warned that pension payments could be delayed — a key issue for former soldiers and the federal government.
Both the Ministry of Defence and the Ministry of Public Services and Procurement, which is responsible for military pensions, said the delays in payments related to “benefit releases” and not pensions.
These are separate standard payments within the purview of the Department of Defense, which has said it is suffering from personnel shortages, which it blames for the delays.
“We are working to both hire additional staff and improve our systems to increase capacity,” Lt. Gov. Meg Baxter said in an email.
This is the latest in a series of financial hardships facing soldiers, sailors and aircrew already struggling with the rising cost of living.
Plans to postpone for 3-4 months, notifies members
Several veterans contacted CBC News after receiving emails from their local transition centre in Kingston, Ontario, warning them of impending pension delays.
“We have received recommendations from the Eastern Ontario Transition Unit regarding pension applications for members who will be released,” a memo dated July 16 from the centre and obtained by CBC News said.
“Pension applications and payments are expected to be delayed for three to four months after discharge. We encourage soon-to-be retiring members to make plans to ensure they are financially independent for five to six months.”
The next day, another email came from the Kingston centre, explaining that they understood why service members were “naturally concerned” and felt it was best to inform them.
The military’s Transition Group General is “monitoring the situation and will do its best to de-escalate it,” it said in a follow-up document on July 17.
The memo also suggested the force was prepared to expedite external applications to insurance companies for members with pre-existing conditions and was even prepared to provide “emergency financial assistance” to those in desperate need.
After several email exchanges with CBC News, the Department of National Defence clarified that the payment delays were the responsibility of the Director of Compensation and Benefits, which is under Military Personnel Command.
Lisa Fiander, acting director of military personnel public affairs, said in an email that the delay in paying severance and accrued leave is “less than four months.”
“Negotiations for additional staff are ongoing,” Fiander added.
The military later issued another email clarifying to troops where the delays were occurring and apologizing for the confusion.
Legally complex, politically difficult
The issue of delayed payments has become a politically sensitive issue for the federal government, with advocates and opposition lawmakers saying it is turning a blind eye to the soldiers’ financial situation.
The legal aspects are also complicated.
The federal government is facing a class-action lawsuit from former military members who waited months to receive their pension checks several years ago.
In 2016 and 2017, CBC News ran a series of stories about the difficulties caused by the situation.
The class action lawsuit was approved for 2022 and is expected to go to trial in November.
Meanwhile, the House Defense Committee is investigating the lack of affordable housing for active-duty military personnel and the financial hardships faced by many serving soldiers, sailors and airmen.
