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The federal government states that proposed changes to disability pension will not result in veterans receiving less money.
The confirmation came in a statement from the finance minister’s office on Thursday.
The minister’s office also clarified that the changes would only apply to current and retired RCMP members, not to former members of the Canadian Armed Forces.
This clarification comes after Veterans Affairs Minister Jill McKnight said in an interview with CBC on Tuesday that Budget 2025 would change how payments are calculated for veterans.
“To ensure clarity for veterans and their families, the measures outlined in Budget 2025 do not reduce the amount of any existing pension benefits,” according to a statement shared from Finance Minister François-Philippe Champagne’s office on Thursday.
The fiscal plan, tabled by Champagne on Nov. 4, proposes to modify the indexing formula so that disability pensions are calculated solely based on the consumer price index (CPI), or cost of living. The change will take effect on Jan. 1, 2027.
“For Canadian Armed Forces (CAF) Veterans, the proposed alignment to the Consumer Price Index (CPI) does not apply,” the statement from Champagne’s office read.
“CAF Veterans would continue to receive indexation based on the higher of the CPI or the wage rate increase, consistent with the current approach.”
The statement did not answer the question of why the RCMP is being singled out or what the fiscal impact of modifying the pension calculation would be.
However, the statement goes on to say that the disability pensions of current and retired RCMP members will be indexed to the CPI, like the Canada Child Benefit, Old Age Security, federal government pension plans, and the Canada Pension Plan.
CBC reached out to the National Police Federation, the union that represents RCMP members, for comment. While the National Police Federation said it does not bargain on pensions, they are waiting for more details.
“It is too early to determine what the impact may be, but we will continue to engage with the government and our members as more information becomes available,” said National Police Federation CEO Brian Sauvé in a statement.
Reacting to the clarification from the finance minister, Sean Bruyea, a former Canadian Forces captain and intelligence officer, said Thursday he remains concerned about the overall budget reductions at Veterans Affairs Canada.
Bruyea, who advocates for the rights of disabled veterans, said the Budget 2025 promises to reduce spending in the department by $4.2 billion over the next four fiscal years as part of a comprehensive expenditure review.