The Objective
Aim: The purpose of this initiative is to have the Prime Minister of Canada terminate
the Benefit Reduction formula that is being applied to our Military Annuity when we attain age 65. The Government of Canada must
right a wrong and amend the CFSA Act and the RCMPSA Act of a miscalculation in justice to our Retired Veterans. Our Annuity
contributions were always separated on our pay guide therefore benefits must be stacked rather then merged!
Campaign Presentation
History: Encouraged by many Veterans, on the 21 February 2005, I wrote a letter to Mr. Peter
Stoffer, MP Sackville-Eastern Shore seeking his support towards a private member’s bill. After meeting with him, I received a
letter of support on the 28 April 2005. Very soon after a committee was formed with John Labelle - Campaign Coordinator, Roger
Boutin, Pr/Member, and Mel Pittman, Web Master/Member. The Web site has since been closed. Bill C-441 and Bill C-221
were introduced to the House of Commons.
Back Ground: The Canada Pension Plan (CPP) was enacted
in 1965 and came into force on January 1, 1966. Its intention was to provide another source for an “Income security” program
supplementing old age security.
The Crux of the issue: The principal facts regarding the issue
are that, in 1965/1966, the Government of the day created a gross injustice, deliberate or otherwise, by merging our pension benefits
rather than stacking them. We were dealt with, in a negligent fashion. Today’s Government must terminate the misguided
policy. Surplus billions of dollars are available in our Military Annuity plan to correct the injustice. This simple
transaction would benefit disabled and retired Veterans, be a boost to the economy and the Government would receive 60% of it back in the
form of taxes.
CFSA Facts: On January 1, 1966 the employee’s contribution rate was reduced
from 9.3% to 7.5%. Hence, a “so called” reduced Annuity contribution to our CFSA has accumulated a Military Annuity surplus of
over 20 Billion dollars. Recently the Government of Canada released their annual 2003-2005 reports of the Canadian Forces
Superannuation Annuity plan. Take note that the depletion of our retirement surplus Military Annuity funds continues.
In the 2003-2004 report, it is noted that $630 million was retired from the CFSA surplus Annuity account. In 2004-2005, no funds were
“withdrawn” from the account and there was a surplus of $1,099,013,000 recorded that year. It clearly indicates that our contributions
to the CFSA account continue to be too high.
CPP Facts: With regards to the CPP, the employee
and the employer each paid half of the required contributions. In 1966, the Government levied rate of contribution for Military
personnel was 1.8% of Annuity earnings. Over the years, the rates substantially increased to 4.95%. Military personnel have
always made the required maximum contributions to the Plan. Recently the President and CEO of the Canada Pension Plan Investment
Board advised that the CPP fund is fiscally healthy. Today the CPP plan has a reserve fund of over $120 Billion dollars and is
expected to grow to $250 Billion in the next decade. “Again clearly indicating that contributions continue to be too high.”
Old Age security facts: The Old Age Security plan is a separate plan that should not be confused
with the Military Annuity and/or the CPP plan. Contributions are not made to the Old Age Security plan. It is simply
absorbed into your income tax rates. Be advised, that the Canada General Income Tax Guide for 2006 states: “You may have to repay
all or part of your OAS pension if your net income is “More” than $62,144”. In the next ten years retirees at age 65 may be
receiving more than one retirement income (IE. CFSA, RRSP, CPP, OAS) therefore they may be subject to repay all or part of the OAS benefits.
Different Government Provider: Military personnel are a distinct Government
provider who encounters a varying number of issues on a regular basis!
- Loss of Spousal income, therefore loss of CPP income;
- Loss of member’s second income opportunity;
- Loss of ability to purchase a home and be mortgage free during a career;
- Not being available for birthdays and special family events;
- We are a distinct Government provider available 24/7 without overtime pay;
- Military personnel often face, dangerous conditions, health hazards, and, extended family separation,
with elevated levels of stress; and
- Canadian Forces personnel are prepared to give the ultimate sacrifice to our Country Canada.
Other reasons why Veterans believe that the CFSA benefit reduction policy is unfair and must be terminated:
- Members of Parliament are exempted from the Annuity benefit reduction formula when they attain age 65;
- Members of Parliament can receive an Annuity upon completing 6 years of service, after 12 years his/her
severance pay can escalate to more than $500,000;
- Upon death, widows of Members’ of Parliament receive 65% of the member’s indexed Annuity. Military
widows receive less than 50% of the member’s reduced indexed Annuity;
- At age 75; Public servants are awarded a $10,000 paid up Supplementary Death benefit protection
policy. Military personnel benefits are reduced at age 61 by 10%
annually until age 70, with a paid up policy of only $5,000;
- The claw back to the Military Pensioners Annuity at age 65 creates a loss to their CFSA indexing benefit
income;
- The Government of Canada also reduces immediately the Disabled Veterans Canadian Forces Annuity
when they receive the CPP disability benefit. In light of their
personal sacrifices, our Disabled Veterans deserved much better treatment; and
- Canadian Forces Personnel have the ultimate liability and Member of Parliament and Government have
the ultimate responsibility for the welfare of our Veterans.
Endorsement of the Campaign: We have received very positive comments of support from our retired very
Senior Officers. They included, Major-General (ret’d) Lewis MacKenzie, Colonel (ret’d) Don Ethell, Commodore (ret’d) David Cogdon,
RCMP Deputy Commissioner (ret’d) Larry R. Proke, Mr Bill Gidley, Excecutive Director, RCMP Veterans, Chief Warrant Officer (ret’d) John Marr,
former CF Chief Warrant Officer and Chief Petty Officer First Class (ret’d) Joe Fillion, former MARCOM HQ CPO1. A great number of
Senior Officers have clearly supported the initiative that Veterans and Military personnel have been mistreated and that the situation needs
to be rectified. This worthwhile initiative continues to grow; over 85,000 supporters have pronounced their support.
Approximately 450,000 members of the Royal Canadian Legion, The Army Navy and Air Force Veterans (ANAVETS) of Canada (20,000 members), and
The Air Force Association in Canada (12,000) adopted resolutions at their Annual General meeting in 2006 in full support of our initiative.
Recently we receive support regarding our Mission from Mrs. Lillian Morgenthau, Founder and President of CARP (Canada’s Association
for the 50 plus). Numerous other Military Associations have declared their support of the Objective. We have also received
the support from Veterans living in 18 Countries. “Veterans from England, Mexico, Germany, CYQQ Forces, Florida, Warsaw Poland, Syrian
Arab Republic, Greece, UK, USA, Cayman Island, Afghanistan, South Africa, Iraq, Thailand, Sarajavo Bosnia, Italy, and Japan.”
Conclusion: The Government of Canada needs to fairly treat the Veterans and embrace them throughout
the year and not only during Remembrance week! This misguided policy affects Retired and Disabled Veterans. A simple
“White paper” request is required from The Prime Minister of Canada to The Minister of Veterans Affairs Canada (VAC) for the needed action
and amendment to the “Pension Act” and its policies. Surplus funds are available in our Military Annuity plan. It is
absolutely ludicrous for members to make separate maximum contributions to three (3) different plans (CFSA, CPP, EI,) and later on in life
receive the financial equivalent of one plan. This injustice levelled at our Veterans some day will affect serving Military
personnel and/or members of your family. Someone will volunteer to serve our Country in the Military! It should be a
concern of all Canadians!
“Veterans are a different Government provider, we were available 24/7, serving far abroad, and we were
prepared to give the ultimate sacrifice to our Country. Our most Senior Decorated Officers support our Mission.
Politicians have exempted themselves from the claw back that would have affected their pensions. Veterans also deserve to be
exempted!”
It has been an Honour and Privilege to serve Canada “Our Country”, and we continue to serve today!
“Veterans want
their Golden Years’ Financial Dignity restored!”
Sincerely,
John Labelle
Campaign Coordinator
27 Dresden Court
Lower Sackville, NS
B4C 3X1