Feature: Federal Court rules on side of 6,000 CF members, and feds should not appeal it

 

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PERIODICAL - May 2012

Issue No: 201255

 

 

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Federal Court rules on side of 6,000 CF members, and feds should not appeal it

This isn’t a game. Pain and suffering payments are often the only thing left for the military to know that their sacrifices meant something to Canada and to Canadians. To continue deducting their value also ‘extinguishes’ the value of military sacrifice.

Prepared and presented for publication by SEAN BRUYEA |

Published: Monday, 05/07/2012 12:00 am EDT

VVi 07 May 2012 pe 

OTTAWA—A Federal Court ruling on May 1 unconditionally sided with the “harsh” plight of up to 6,000 disabled medically-released Canadian Forces members. They have been fighting the federal government all the way to the Supreme Court and back again for five years.

At issue is how the federal government is, in effect, discriminating against injured CF soldiers once they are medically released.

Since World War I, Canada, like many nations, has honoured disabling military injuries with pain and suffering compensation. This compensation is paid out by Veterans Affairs Canada through the Pension Act as a monthly disability payment.

That such injuries need to be compensated is not in dispute. Compensation for pain and suffering is a cornerstone of how most developed nations respect the profound loss of quality and enjoyment of life due to disabling injuries.

However, soldiers also need income support if they are no longer able to work. The CF has its own long-term disability plan (LTD) for just that reason. The Service Income Security Insurance Plan (SISIP) pays out 75 per cent of a person’s last salary in the CF if a military member is not medically fit to stay in uniform. The SISIP LTD program is highly limited as it does not reflect the lost potential in earnings due to promotions, advancing education, or even extra allowances to care for family members.

What the SISIP plan does do is deduct from the 75 per cent income any additional payments for pain and suffering. There is no other private or public insurance plan in Canada reportedly which is allowed to deduct pain and suffering payments from income. The courts have long recognized that they are as different as chairs and desks. They both work together but they serve completely different functions…and one cannot reasonably replace the other.

The CF knows this well. At the time of SISIP’s creation in the 1970s, members injured overseas were entitled to collect full salary plus full pain and suffering compensation from Veterans Affairs. In October 2000, any disabling injury suffered in military service at home or abroad allowed members to collect 100 per cent of salary plus full compensation.

When the class action was first launched in 2007, almost 10,000 serving members received 100 per cent salary, plus full pain and suffering compensation. As of Dec. 31, 2011, there are 6,014 serving members who still receive full salary plus pain and suffering payments, as many as the almost 6,000 who are possibly affected by the court decision.

 It hardly seems fair that these affected by the decision not only lose full salary and a fulsome career, but the full equivalent of their pain and suffering payments. As a result of the decision, this practice is now illegal. 

There are details in both the court decision and in the deduction practice that are disturbing. For instance, disabled CF members are also provided compensation for having a spouse and children. Such compensation is commonly understood today to help compensate for the loss of quality of life for the disabled person with his or her family, but also the loss suffered by the family members when their spouse or parent is no longer the same person after the military injury. 

Sadly, in some petty administrative act, SISIP deducts the amounts for family members and yet the long-term disability provides no additional amounts for family members. Perhaps this is why Judge Barnes, who is well qualified with an extensive background in insurance litigation, could write the following: “The practical consequence of the [deduction] is to substantially reduce or to extinguish the LTD coverage promised to [those receiving SISIP LTD] with particularly harsh effect on the most seriously disabled CF members who have been released from active service.  That is an outcome that could not reasonably have been intended and I reject it unreservedly.”

The injustice and unethical nature of deducting the pain and suffering payments have not been lost on either Parliament or federal service oversight bodies. Two previous DND/CF ombudsmen have soundly condemned the practice. One of them, Yves Côté, was an articulate champion for the disabled CF members who could not defend themselves, calling the deductions “profoundly unfair.” Coincidentally, he is now the associate deputy minister of justice.

The Senate National Defence Committee has unanimously called for the deductions to cease. Even the House Standing Committee on National Defence as far back as 2003 unanimously called for the unfair deductions to end the deductions “forthwith.”

Minister of National Defence Peter MacKay, Treasury Board President Vic Toews and Prime Minister Stephen Harper were all associate members of the House National Defence Committee back in 2003.

Members of Parliament, ministers, and the Prime Minister, as well as senior public service officials, have their own long-term disability plan. This plan specifically instructs that the first item to exempt from deduction is Pension Act pain and suffering compensation.

Indeed, no provincial or territorial workers’ compensation plan is allowed to deduct Pension Act pain and suffering payments.

As Judge Barnes astutely points out, the continued deduction practice asks: “Of perhaps greater significance is whether a CF member who suffers a catastrophic combat injury at a level approaching 100 per cent disability would expect to effectively receive nothing more than 75 per cent of his CF income and to be treated the same as a CF member with a disability of lesser functional significance arising outside of his military service.”

No law needs to be passed to honour the Federal Court’s findings. The minister of National Defence, Cabinet, and Treasury Board need merely order the cessation of deductions of  Veterans Affairs pain and suffering payments from long-term disability income.

To give the government credit, this court decision came about because the federal government fully agreed to ask the court to answer whether the pain and suffering compensation can legally be deducted from long-term disability income. Ottawa has also agreed upon the salient facts surrounding the case.

So why would Ottawa appeal?

The matter is now in the government’s hands. It is no longer before the courts. This removes MacKay’s and the government’s reasons for not stopping the deductions as they claimed it was a matter before the courts.

The courts have decided.

For the government to appeal would not only be wrong, it would be punishing for disabled CF members and their families. It would be akin to agreeing to a hockey match with disabled CF members and then arguing with the referee once the government is called for kicking the injured soldiers when they already down on the ice.

Except this isn’t a game. Pain and suffering payments are often the only thing left for the military to know that their sacrifices meant something to Canada and to Canadians. To continue deducting their value also “extinguishes” the value of military sacrifice.

The question will soon become not whether to appeal or not to appeal or even whether Ottawa will play by the rules or not. Instead, Canadians will ask themselves whether they would risk their lives in the military when the government and the bureaucrats are waiting on the sidelines to kick them once they have fallen.

Sean Bruyea is a columnist, graduate student in a masters of public ethics and a former CF intelligence officer. He is also affected by the Federal Court decision.

news@hilltimes.com

The Hill Times

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  Letter From VVi Directors to MND and CDS Re SISIP Judgement

See pdf copy of letter...

Attn: Publisher

VeteranVoice.info

428 Deermont Court SE

Calgary, Alberta, T2J 5W7

publisher@VeteranVoice.info

https://veteranvoice.info 

To:

The Honourable Peter MacKay
Minister of National Defence
National Defence Headquarters
Major-General George R. Pearkes Building
Ottawa, Ontario
K1A 0K2

07 May 2012

VeteranVoice.info Requests Minister to Not Appeal Federal Court Ruling on SISIP LTD Deductions of Pension Act Disability Payments

Minister MacKay,

On May 1, 2012, the Federal Court rendered an unequivocal yet fairly worded decision that the deduction of Pension Act monthly disability payments from the Canadian Forces long term disability policy known as SISIP (Service Income Security Insurance Plan) is not “contractually justified.” We urge the Minister and the Chief of Defence Staff to not appeal this ruling.

VeteranVoice.info is a community of more than 110,000 serving and former CF members as well as Canadian families and supporters of the CF community. We are the largest online, real-time news distribution and sharing community in Canada. We do not take the step to politically advocate unless the issue is of utmost importance, clarity and injustice.

What the DND Ombudsman, Yves Côté concluded were “profoundly unfair” deductions of Pension Act payments from SISIP LTD income is a highly important, clear and indisputably unjust practice. Mr. Côté’s recommendations as well as those of his predecessor, André Marin were unanimously endorsed by the House Standing Committee on National Defence in 2003, a committee for which you were an associate member. Yet, the recommendations have never been enacted.

There is indisputably no other issue which has passed through the VeteranVoice.info community since its inception which has galvanized universal support like the call to stop the profoundly unfair deductions from SISIP LTD. This issue has become a touchstone and a banner call magnifying other less visible shortfalls and gaps which continue to affect serving and retired CF members.

Nevertheless, we wish to thank you and General Natynczyk on recent actions to re-establish faith with the CF and the public. We commend you for promptly following the Auditor General’s recommendations to establish a separate government panel to select Canada’s CF-18 replacement fighter.

Following recommendations to replace the broken faith, broken bodies and broken minds of injured CF soldiers affected by the unfair and illegal deductions from SISIP LTD should be as quickly and thoroughly acted upon as recommendations to replace a piece of inanimate equipment.

Last week, the CDS made an appeal to the Canadian public for assistance in filling the ranks of mental health workers. This is the kind of partnership and public awareness which begins to instil the necessary bond and faith between Canada and its military. Such calls also greatly assist the healing of injured CF who have become devastated by dealing with an often uncaring bureaucratic system which often worsens their conditions. This is counterproductive to military effectiveness and establishing public goodwill for the CF.

As you well understand, the bond between a military members and their government is profound. This is why such words as social contract, social covenant and unlimited liability have been used to describe the mutual reliance, and an unswerving loyalty of CF members to their nation even when the uniform comes off. This loyalty however is in jeopardy.

The Federal Court ruling clearly underlined that the deductions of Pension Act payments was a breach of contract. Whereas a social contract/covenant is often unclear as to the obligations of government to its military, an insurance contract is very clear.

Also irrefutably clear is the ruling of the courts. If the government appeals this ruling, the harm done to the more than 1.5 million serving and retired members, and their families will be long-lasting. The public’s unprecedented and growing offence at the treatment of injured soldiers will undoubtedly increase exponentially.

The one question remaining upon many minds both in and outside the CF: why should citizens honour a contract of unlimited liability to the Government of Canada when Canada continues to ignore government oversight bodies, both Chambers of Parliament, the Royal Canadian Legion (and other organizations) and potentially the Federal Courts.

The military and Canadians should never have to ask why citizens in uniform should honour unlimited liability. We urge you to not appeal the Federal Court’s ruling.

Sincerely,

(Electronically Signed)

The Board of Directors at VeteranVoice.info 

 

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Other Links Related To The SISIP Judgement 

 

04 May 2012

http://legion.ca/News/12_May4_e.cfm

http://leavenovetbehind.ca/#

03 May 2012

http://thechronicleherald.ca/opinion/92338-disabled-vets-finally-receive-some-justice

http://thechronicleherald.ca/novascotia/92382-vets-cautiously-optimistic

http://www.ctv.ca/CTVNews/Canada/20120501/federal-court-rules-ottawa-should-stop-clawingbackveterans-disability-benefits-120501/

http://www.cbc.ca/news/canada/nova-scotia/story/2012/05/01/ns-veterans-disability-federal-court.html

02 May 2012

http://www.ombudsman-veterans.gc.ca/blog-blogue/post-eng.cfm?157

01 May 2012

http://thechronicleherald.ca/canada/91839-veterans-win-battle-against-ottawas-disablility-clawback

http://leavenovetbehind.ca/pressreleases/view/2

http://leavenovetbehind.ca/important_update

http://cas-ncr-nter03.cas-satj.gc.ca/rss/T-463-07%20decision%20ENG.pdf

 

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