Auditor general to probe lump-sum disability payments for veterans
Wednesday, December 8, 2010
By Kathryn May, Postmedia News
OTTAWA — Auditor General Sheila Fraser is planning to investigate the New Veterans Charter and the lump-sum payments that became a flashpoint for growing numbers of wounded soldiers returning from Afghanistan.
Fraser confirmed her planned audit in a Dec. 7 letter to Liberal Senator Percy Downe who pressed her office for an audit since studies came to light that predicted the new lump-sum disability payments would mean less money for veterans and save up to $40 million a year.
"I'm concerned this became a cost-saving exercise rather than a service to veterans," said Downe.
In the letter, Fraser said the issue "is an important one" for her office and auditors responsible for Veterans Affairs are planning an audit on "aspects" of the charter. Her office expects to deliver the report on the audit in the fall of 2012.
The Harper government has been under fire for months, facing accusations that veterans have been shortchanged on benefits.
The spotlight was also thrown on the department for passing around the personal medical files of military veteran and advocate Sean Bruyea. He has since settled his $400,000 lawsuit with the government over the breach.
The charter, which replaced a series of benefits dating to the Second World War, was proposed by the Paul Martin government and quickly sailed through Parliament with all-party support. It came into force when the Conservatives took power in 2006.
Among the changes, the new charter replaced lifetime pensions with a combination of lump-sum payments and income support. Former Veterans Ombudsman Pat Stogran argued the one-time payment, worth up to $276,000, was too small to make up for the loss of a lifetime pension and the department was too stingy in dealing with veterans.
In the midst of the furor, leaked documents suggested Veterans Affairs bureaucrats knew from the start the charter would mean less money for wounded soldiers and was expected to save $40 million a year within six years.
Veterans Affairs Minister Jean-Pierre Blackburn has announced a slew of changes, including a recent $2-billion support package that offered a minimum pre-tax income of $40,000 a year for those who can't work or are on rehabilitation.
The changes also allowed veterans to spread out their lump-sum payments over a number of years. Critics, however, argue the changes don't go far enough.
Downe said he had earlier been told by Veterans Affairs officials that benefit costs might go down but was assured that wasn't the intention behind the new policy.
"The fact that the government made such assurances while sitting on those reports is another good reason why we should take the flurry of announcements with a grain of salt," said Downe.
Downe is also pressing the Harper government to do more to help veterans get back to work. He has written cabinet ministers urging them to show "political leadership" and order their departments to hire more ex-military who are on the waiting list for jobs in the public service.
The government gave medically discharged veterans a hiring preference in 2005 to work in the public service. Downe has long criticized departments for not making more of an effort to hire these veterans, many of whom are young and injured during their prime working years.
He argues the government could easily absorb the number of ex-military and RCMP sitting on priority lists. At last count, the 245 went on the list and 177 found jobs over two years but the majority were hired by National Defence.
Last year, 67 veterans fell off the priority list when their hiring preference expired before they found jobs.
kmay@ottawacitizen.com
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