Canadian military personnel approaching retirement are facing significant delays in receiving their severance, back pay, and accumulated vacation payouts. The Department of National Defence has confirmed these delays, which have raised concerns and confusion among veterans.
In recent weeks, a notice was sent to members scheduled for release, advising them to anticipate delays in receiving their pension—a sensitive issue for both veterans and the federal government.
Cause of Delays
The delays pertain to “release benefits,” which are distinct from pensions. These benefits are managed by the Department of National Defence, which is experiencing a staffing shortage, contributing to the delays. “We are working on hiring additional staff and improving the system to increase capacity,” stated Lt. Meg Baxter.
Impact on Military Personnel
Several retiring members were informed of the delays through an email from a local transition center in Kingston, Ontario. The email advised them to be financially self-sufficient for 5-6 months due to the expected 3-4 month delay in pension application or payments. This has added to the financial strain already felt by soldiers, sailors, and aircrew amid rising living costs.
Mitigation Efforts
The transition unit assured members that they are monitoring the situation and are prepared to expedite outside applications to insurance companies for those with medical conditions. Additionally, they are ready to provide emergency financial assistance to those in desperate need.
Broader Implications
The issue of delayed payments is politically sensitive, with claims from advocates and opposition members suggesting a lack of attention to the financial well-being of troops. This situation is further complicated by a class-action lawsuit from former military members who previously faced delays in receiving their pension cheques.
The federal government faces scrutiny over this issue, with the House of Commons defence committee also studying the lack of affordable housing for military members and the financial pressures they face.
Background
In 2016 and 2017, a series of stories highlighted the hardships caused by pension delays, leading to the class-action lawsuit certified in 2022 and set for trial in November. The military has acknowledged the current delays and is negotiating to increase staffing to address the issue.
Conclusion
The delays in severance and benefit payouts are the latest in a series of financial challenges for Canadian military personnel. The Department of National Defence is working to resolve these issues, but the impact on retiring members remains a significant concern.