Retiring military members face months-long delays for severance, benefit payouts
Some told to be 'financially self-sufficient' for 5-6 months
Canadian military members who are retiring in the foreseeable future will face delays in receiving severance, back pay and accumulated vacation payouts, the Department of National Defence has acknowledged.
There's been concern and confusion among veterans for several weeks, after a note sent to members who are on track to be released warned them to expect delays in receiving their pension — a hot button issue for former soldiers and the federal government.
Both the defence department and public services and procurement, which is responsible for military pensions, say the payment delays do not involve pensions but rather "release benefits."
Those are separate, standard payments that are within the purview of the defence department, which says it is struggling with a staffing shortage — hence the reason for the delay.
"We are working at both hiring additional staff as well as improving the system to increase capacity," Lt. Meg Baxter said in an email.
It's the latest in a series of financial woes faced by soldiers, sailors and aircrew — all of whom are already struggling with the soaring cost of living.
Plan for 3-4 month delay, members told
Several retiring members of the military approached CBC News after receiving an email from the local Kingston, Ont., transition centre, warned them about impending pension delays.
"We received an advisory from Transition Unit East Ontario regarding pension applications for members about to be released," said the centre's July 16 note, which was obtained by CBC News.
"They are expecting a standard delay for pension application or payments of 3-4 months post-release. For those members soon to be retiring, we suggest that they plan accordingly such that they can be financially self-sufficient for 5-6 months."
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It was followed up the next day with another email from the Kingston centre, explaining they understood why military members would be "legitimately concerned" and that they felt it was best to notify them.
The military's overall transition group "is monitoring the situation and will try their best to mitigate the situation," said the July 17 followup note.
The note also suggested the unit was prepared to expedite outside applications to insurance companies for members with medical conditions and was even ready to provide "emergency financial assistance" for those in desperate need.
After several email exchanges with CBC News, the defence department clarified the delayed payments are the responsibility of the director general of compensation and benefits, which is under Military Personnel Command.
The delay in paying severance and accumulated vacation stands at "less than four months," said Lisa Fiander, acting head of military personnel public affairs, in an email.
"Negotiations to increase staffing are ongoing," Fiander added.
The military subsequently issued another email clarifying for its members where the delay is happening and apologizing for the confusion.
Legally complicated, politically challenging
The issue of delayed payments is a politically explosive one for the federal government, given claims from advocates and opposition members that a blind eye is being turned to the financial well-being of troops.
It is also legally complicated.
The federal government is facing a class-action lawsuit from former members of the military who, several years ago, had to wait months for their pension cheques.
In 2016 and 2017, CBC News published a series of stories about the hardships created by that situation.
The class action lawsuit was certified in 2022 and will proceed to trial in November.
Separately, the House of Commons defence committee is studying the lack of affordable housing for current members of the military, along with the financial squeeze many soldiers, sailors and aircrew find themselves in while serving.
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