Gov’t Failed to Include Cost of Living in Disability Pensions


Failure to Include Cost of Living in Disability Pensions

Dear Members of the Association,

The failure of the federal government to include cost-of-living allowances is referred to as an indexing adjustment. When Veterans Affairs Canada (VAC) discovered this indexing error, which occurred between 2003 and 2010, notifications were sent out to everyone they had contact with.

Unfortunately, if an eligible pensioner died before receiving the notification the estate may not be aware of the error and may stand to recoup some substantial funds. President Sandy Glenn did contact the RCMP/VAC Liaison Officer, Sgt. Kim Hendricken who offered that we should try and notify affected estates.

With this project in mind Nova Scotia Division members, Jan and Vic Gorman set about to create a document to assist estates in recouping what monies are involved.

The document follows and will be posted on our website and may be viewed by clicking here.

James Forrest
Director of Communications
RCMP Veterans’ Association

Between 2003-2010, Veterans Affair Canada (VAC) clients (RCMP and DND) and survivor’s pensions were affected by the government failing to include the Cost of Living in their yearly Disability pensions; this mistake is called an Indexation Error. A combined 101,000 RCMP and DND Veterans and survivors were affected by this mistake, costing them over $73 million in payment.

Veterans Affair Canada (VAC) has made a Corrective Payment to the majority of these clients.

However, the issue becomes more complicated when the eligible person died without VAC having knowledge of a current living survivor or their contact information to reach out to these estates. Through VAC’s online tools they have now communicated the Indexation Error. By following the links to the VAC site, information is available to persons responsible for estates to enable them to apply for a corrective payment.

English Link: Please click here

French Link: Please click here

Q: I am legally entitled to inherit the assets of a deceased benefit recipient. How do I apply for a corrective payment?

A: You will be able to apply via an online application form, where you can upload the required supporting documents, or the estate can also call VAC at 1-866-522-2122 To apply.

VAC requires the following information and documents:

  • Deceased’s permanent residence at time of death, place and date of death, and Other identifiers (Service number or Regimental Number, and VAC File number or K number).
  • Deceased’s death certificate
  • Deceased’s Will (if they died with a will)
  • Release signed by all other persons legally entitled to inherit (or “succeed to”) the assets of the deceased (form provided in application)
  • Proof of your identity (photocopy of passport or driver’s license images)

The concern the RCMP Veterans’ Association has is that estates who are legally entitled to make a claim are not aware of the Indexation Error.

We request that if you know of such a person or estate, please provide them with the information.




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