Bill C-55 (Historical)

Enhanced New Veterans Charter Act

An Act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act

This enactment amends Part 2 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act by making the permanent impairment allowance available not only to veterans who are eligible for a disability award under that Act, but also to veterans who are eligible for a disability pension under the Pension Act. It also introduces a supplemental amount to the permanent impairment allowance for the most severely and permanently impaired veterans.
It amends Part 3 of the Canadian Forces Members and Veterans Re-establishment and Compensation Act to provide Canadian Forces members and veterans with a choice of payment options for a disability award.
It also amends the Pension Act by making the exceptional incapacity allowance available not only to veterans and members of the forces who are receiving a disability pension under that Act, but also to veterans and members who are receiving both such a pension and a disability award under the Canadian Forces Members and Veterans Re-establishment and Compensation Act.

(Bill C-55. On the Order: Government Orders:)

March 8, 2011--Consideration at report stage of Bill C-55, An Act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act, and of Motions Nos. 1 and 2--Minister of Veterans Affairs and Minister of State (Agriculture)

Veterans

[Jean-Pierre Blackburn, Conservative, Minister of Veterans Affairs and Minister of State (Agriculture)]

Mr. Speaker, the charter that was unanimously adopted in the House in 2005 had some flaws. We are correcting them with Bill C-55, which will address questions that were raised today in a newspaper article.

Once this bill passes, the minimum that an individual participating in a rehabilitation program will receive will be $40,000 per year. For a veteran who cannot return to work, the minimum will be $58,000 per year. Furthermore, we will correct the problems with the lump sum payment, which will become optional.

Veterans Affairs

[Gary Schellenberger, Conservative, Perth—Wellington, ON]

Mr. Speaker, I have the honour to present, in both official languages, the third report of the Standing Committee on Veterans Affairs in relation to Bill C-55, An Act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act.

The committee has studied the bill and has decided to report the bill back to the House with amendments.

[Judy Sgro, Liberal, York West, ON]

Well, no. It has to pass and get into force. It has to have two years for us to find out if it's working.

Is it reaching the people we all want it to reach? Is it helping them? That's what Bill C-55 is all about.

[The Chair, Conservative, Gary Schellenberger]

This is specific to Bill C-55?

[Bernard Butler]

I guess my quick response to it would be, Mr. Stoffer, that the challenge that we had was not in the regulations around permanent impairment allowance, it was around what we are referring to as a “crosswalk”. It was the relationship between the old act and the new act. It had to do with limiting what disabilities could be considered for permanent impairment allowances that flow from the old act. And the way the legislation had been structured, it imposed an unintended barrier. What Bill C-55 will do is eliminate the barrier so that in fact disabilities for which entitlement is held under the old Pension Act can be included for purposes of entertaining applications for permanent impairment allowance. So that's where the key distinction is in Bill C-55.

[Bernard Butler]

This bill speaks to enhancements to the new Veterans Charter programming. It's targeted to the financial benefits payable under the bill. There's nothing in Bill C-55 that would speak to those issues you're raising, Monsieur, in this regard.

[Bernard Butler, Director General, Policy and Research, Department of Veterans Affairs]

Mr. Chair, members of the committee, I am pleased to be here today to talk to you about the Enhanced New Veterans Charter Act.

This fall the minister announced four changes to the new Veterans Charter programming. The first change was to improve the earnings loss benefit. As has been noted, this only requires a regulatory change, so it's not technically a part of the bill. That benefit, which replaces lost income for veterans undergoing rehabilitation, or who cannot be suitably and gainfully employed, will be increased to ensure a minimum annual pre-tax income of $40,000. So this is essentially an enhancement proposed for the earnings loss benefit.

The other three changes are a part of this bill, which amends the new Veterans Charter and the older Pension Act. These changes will, firstly, increase access to the permanent impairment allowance in the new Veterans Charter and the exceptional incapacity allowance under the old Pension Act to ensure that seriously disabled or injured veterans have access to either one of these benefits—so either access to the permanent impairment allowance under the new Veterans Charter or access to the exceptional incapacity allowance under the Pension Act.

These changes will also provide a supplement of $1,000 per month to veterans in receipt of the permanent impairment allowance who cannot be suitably and gainfully employed.

Finally, it will provide the payment options for the disability award. The bill, as you are aware, will also be used to make minor housekeeping changes.

We listened with interest to debate at the second reading. I'd like first to take this opportunity to thank many of you for your words of support in the House. I would also like to address some of the concerns you have raised.

Many of you wondered why we did not increase the lump-sum payments. The concern stakeholders brought to us was a lack of a monthly income for certain veterans. Increasing the lump sum by itself would not fix that. However, increasing support provided through our financial support programs would. As such, we proposed increasing the earnings loss benefit and the permanent impairment allowance. The new Veterans Charter is a more complete approach to helping those injured in the line of duty and helping their families. It not only provides for lump-sum disability awards for pain and suffering, but it also provides monthly financial support when needed, such as earnings loss benefit, permanent impairment allowance, and the Canadian Forces income supplement, as well as case management, rehabilitation, and support for families.

We also found that many veterans—some 69% when surveyed—were satisfied with their lump-sum payments. When we surveyed veterans who had received a disability award, we found that 85% thought their lump sum was well used: 71% had invested at least a portion of that amount; some paid down a debt or put money in a savings account. That said, as some of you noted in debate, we also found that 31% weren't satisfied. As the minister has noted, 31% is enough to cause us to rethink the method of payment. So we are now, through this bill, proposing a choice of payment options.

You also asked why it took so long to bring forward changes to the charter. It's easy to forget that this is a new program with an innovative design and no experiential history upon which to build. Five years in the life of a program is but one cycle. In April we only completed, really, that first cycle. In spite of excellent program design and robust forecasts, the living charter is subject to what happens out in the real world, and we needed to collect that data and evidence to make full study prior to making changes.

In debate, Ms. Duncan noted some of the other changes the Legion would have liked to have seen. Regarding those specific to the legislation, I have addressed the issue of the disability awards, but the other items raised were different options for increasing the earnings loss benefit, providing it for life, and basing it on projected career earnings.

On this point, Mr. Chair, when designing these programs we take a whole-of-government approach and strive to keep our benefits similar to what the Department of National Defence and other similar federal programs provide. For example, National Defence provides 75% of salary in their income replacement programs. So consistency between what is received by those in service and those who exit service is important.

Mr. Stoffer, you had raised some specific concerns on the bill in debate that I'd be happy to speak to further in questions, if still required, but I did want to touch on the issue of the use of “may” as opposed to “shall” in our legislation. A convention of legislative drafting has evolved such that the word “may” is used and interpreted as “shall” in many instances. So in the new Veterans Charter and also in these amendments being brought forward in Bill C-55, when a veteran applies for and meets the eligibility criteria to qualify for a benefit, the word “may” is simply interpreted as the mandatory “shall”. The minister can do nothing other than grant the benefit and has no discretionary authority to refuse the application when the eligibility criteria have been met.

Mr. Chair, those are simply some observations we would make. We thank you for this time to address the committee, and we are here to assist you in your deliberation and certainly to answer any further questions you may have.

Merci beaucoup.

[Guy Parent, Veterans Ombudsman, Chief Warrant Officer (Retired), Office of the Veterans Ombudsman]

Thank you, Mr. Chair.

Honourable members of the committee, thank you for allowing me to say a few words today. I know that you have a very full agenda, so I will be brief.

I have followed with great interest the discussions in the House of Commons pertaining to Bill C-55, the act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act. As the Veterans Ombudsman, as a veteran myself with 37 years of military service, and as the proud father of a son who has served in the Canadian Forces and in Afghanistan, I am grateful to all members of Parliament for their commitment to do right by veterans and still-serving members of the Canadian Forces.

The men and women who put on the uniform implicitly agree to risk their lives to defend our country and the values that we hold dear. In return, they have the right to expect from their government an integrated series of measures to support them throughout their careers and beyond. This country has a moral obligation to provide the very best support to them—particularly when they sustain career-ending, service-related injuries or illnesses—and to their families, who, in my opinion, do not get sufficient recognition for the sacrifices they make in support of their loved ones' military careers.

There is broad if not unanimous support among parliamentarians, veterans organizations, and others for the spirit of the Canadian Forces Members and Veterans Re-establishment and Compensation Act, better known as the new Veterans Charter, in regard to its focus on wellness and transition to civilian life, compensation, and its more holistic approach to the needs of veterans and their families. The new Veterans Charter was seen when it came into force on April 1, 2006, and continues to be characterized as a significant improvement over the Pension Act.

Based on recent discussions on Bill C-55 in the House and elsewhere, I venture to say that this support for the spirit of the New Veterans Charter remains strong. However, there are also questions and concerns about the effectiveness of some of the programs and measures implemented under the charter and there is certainly room for improvement.

Over the past five years, there have been consultations, and sustained efforts by the House of Commons Standing Committee on Veterans Affairs, the Senate Subcommittee on Veterans Affairs, the New Veterans Charter Advisory Group and other advisory groups, veterans organizations and the Office of the Veterans Ombudsman, to identify shortcomings and improvements.

The New Veterans Charter is complex. Because it was difficult to anticipate in advance its shortcomings or unintended consequences, the government made a commitment to continuously review its programs and services and to amend the legislation, if necessary, to address emerging needs or unanticipated consequences. In this way, the New Veterans Charter was intended to be a “living charter”, and I believe that the principle of a “living charter” is as important as “the spirit of the charter” itself. However, it has taken five years for this principle to become reality.

On November 17, 2010, the Honourable Jean-Pierre Blackburn, Minister of Veterans Affairs, introduced Bill C-55 in the House of Commons, which is now before this committee for review. I urge you to return it to the House for third reading as quickly as possible. Some may view Bill C-55 as modest in scope because it does not address all the shortcomings of the charter, but it is a very important step in setting the precedent to make the charter a truly “living” document, as envisioned by you and your fellow parliamentarians five years ago.

Bill C-55 may not be as comprehensive as some would like, but by passing Bill C-55 you will immediately affect the lives of the most seriously disabled veterans receiving disability benefits under both acts, those who could not receive the permanent impairment allowance or the exceptional incapacity allowance because of a technical flaw in the charter. This change, combined with the introduction of a monthly $1,000 supplement for permanently and severely injured veterans, represents significant improvement.

There is of course much debate about the disability award and whether or not the payment options provided under Bill C-55 go far enough to address the concerns around the lump-sum payment. They don't, but it is important to remember that Bill C-55 is the first opportunity to make changes to the new Veterans Charter; it is not, nor should it be, the last of your opportunities.

The discussion about improvements to the disability award and financial benefits is an extremely important one, and it must continue. The issues raised are complex and, in order to make informed decisions, cannot be reduced to a comparison of the disability award and the disability pension in isolation of the charter's other programs and benefits. It may be that the next series of amendments to the new Veterans Charter will address improvements to the charter's dual compensation approach. That would certainly be consistent with the principle of the charter as a living document.

Bill C-55 is a small but important step in making the charter a living document and bringing about changes to the legislation to better address the needs of Canada's veterans and their families. It should be considered as the beginning of the promised ongoing renewal process that is needed to afford veterans the care they deserve. Other steps must follow, and soon. Waiting another five years to bring about further improvements to the new Veterans Charter would be unacceptable.

Thank you.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Gentlemen, first of all, thank you very much.

Sir, it's a real pleasure to see the liberation medals from the Netherlands on you. Thank you both for your service.

On the $40,000 thing that we've been discussing with my other colleagues, I'm not sure if you're aware, but you don't need Bill C-55 to move the $40,000 amount. You don't need a legislative amendment to do that. You just need a regulatory amendment to do that. So it could be $40,000, it could be $80,000, it could be $100,000, but you don't need Bill C-55 to move that amount. So that's problem number one. And it's unfortunate that Veterans Affairs has indicated that for the $40,000, Bill C-55 has to pass, because they're two different things altogether.

The biggest problem that I have, although the bill is a small step in the right direction, is that the government should have taken a great big leap to assist, because the reality is, according to the Library of Parliament, only 20 severely injured veterans have received the permanent impaired allowance since 2006. Only 20. This bill will probably help a few hundred more, but you and I both know that there are thousands upon thousands of veterans and their families who require assistance in a variety of ways right now. So although this is a small step forward, it is a tiny step.

So I just want to ask you this question. You deal with government all the time and Department of Veterans Affairs officials. Why were they so timid in this legislation, when they could have taken a big leap forward? With all the advice they got from our committee, from veterans groups, from the Gerontological Advisory Council, their own advisory board, of all the recommendations to move the issue of veterans care forward, why do you think they were so timid, in my own opinion, and moved the bar ever so slowly forward?

[Elphège Renaud]

Do you think I did not read Bill C-55? Are you saying I said something else? It is $1,609. In order for a veteran to be entitled to that money, he has to be 100% disabled, in other words, without an arm or a leg. A veteran who is 50% disabled will get only half of that amount. And that is $800, is it not? In order to receive the $1,000, you have to be entitled to receive the $1,609. So you would get a monthly allowance of $1,609 in addition to an extra $1,000 for life. That sounds pretty good. But to be entitled to that $1,000 a month for the rest of your life, you have to be receiving the $1,609. You have to be 100% disabled. How many soldiers returning from Afghanistan will be 100% disabled and therefore entitled to receive that $1,609?

What's more, you have to meet other conditions as well to get that $1,000. I know because I applied for it. You must be unable to walk, be in a wheelchair or be unable to attend to your own affairs, such as getting dressed. That is my situation. You have not seen me without my clothes on, it is not a pretty sight. And I was not even eligible to access the entire amount, even though I should be. I am actually much more disabled than I appear. If I did not have my clothes on, it would probably frighten you to see everything I have to wear underneath.

It sounds great when the government makes this kind of announcement. They talk about $1,609 and $1,000 for life. People who read about that in La Presse or see it on TV will think that the government is supporting veterans. A veteran who spent 33 years in the Canadian Forces—and who happens to be my cousin—told me today he thought the $40,000 was for every veteran. That is not the case. It is an additional benefit for those who are eligible and will mean more money for them. I have always said that any extra money a veteran is given would be welcome, but the government must not go around claiming it is handing over enormous sums, either. All the better for those who will be able to access that money. They will have the security that the $1,609 and $1,000 for life will provide, but it is not quite as easy as picking up a cheque. This room could fit all the veterans who will be eligible to receive that money. I know one thing, I have been getting a pension for 58 years.

[Judy Sgro, Liberal, York West, ON]

Thank you very much.

Thank you for being here today. As always, thank you for your contribution to our great country and for defending all of us in the past.

My question will go to either one of the gentlemen who wants to answer. Have you had a chance to review the bill we're referring to today, Bill C-55?

[The Chair, Conservative, Gary Schellenberger]

I'm sorry for the delay to our witnesses.

Welcome to meeting number 42 of the Standing Committees on Veterans Affairs. Pursuant to the order of reference of Friday, March 4, 2011, we are dealing with Bill C-55, an act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act.

We're going to extend the meeting a little. We have allowed our witnesses here today each a five-minute statement and then we'll have one five-minute question for each party, because there is half an hour allowed for this part.

From the Association du Royal 22e Régiment, we have Elphège Renaud, president, and Claude Sylvestre, first vice-president. Welcome, gentlemen.

Enhanced New Veterans Charter Act

[The Speaker, Liberal, Peter Milliken]

Pursuant to order made on Wednesday, March 2, Bill C-55, An Act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act, is deemed read a second time and referred to a committee.

Accordingly, the bill stands referred to the Standing Committee on Veterans Affairs.

(Motion agreed to, bill read the second time and referred to a committee)

The House resumed from March 2 consideration of the motion that Bill C-55, An Act to amend the Canadian Forces Members and Veterans Re-establishment and Compensation Act and the Pension Act, be read the second time and referred to a committee.