Ottawa ends clawback on veterans affairs pensions after Federal Court ruling
OTTAWA - Veterans Affairs has ended the policy of clawing back the benefit payments of disabled soldiers, sailors and aircrew.
The Harper government says the amount of a veteran's pension will no longer be deducted from benefits for lost earnings and Canadian Forces income support, which were introduced in 2006 under the New Veterans Charter.
Veterans Affairs Minister Steven Blaney and his parliamentary secretary Eve Adams are making the announcement at simulaneous news conferences in Ottawa and outside Quebec City.
Ending the clawback immediately will cost the federal treasury $177.8 million over the next five years.
The move is related to last spring's Federal Court ruling, which rejected the clawback of disability benefits from eligible veterans in a case waged against the Department of National Defence.
Back in July, Defence Minister Peter MacKay ended the deduction for most disabled soldiers, but it took a special cabinet order — passed just recently — to get the measure enacted for those affected under the veterans affairs system.