Veterans Ombudsman uncovers an estimated $165 million accounting error shortchanging thousands of Veterans receiving a disability pension

November 5, 2018 – Ottawa, Ontario – Office of the Veterans Ombudsman

Canada’s Veterans Ombudsman Guy Parent released today information on an accounting indexation error by Veterans Affairs Canada (VAC). VAC estimates that this error could total around $165 million for the period of 2003 and 2010. The error has deprived thousands of Veterans of indexation increases to their monthly disability pension.  

The Office of the Veterans Ombudsman (OVO) uncovered the error when they analyzed the math behind the implementation of a change to the Disability Award. When examining VAC’s worksheets, the OVO noticed that for a number of years, the provincial basic tax credit was not factored into the calculation of provincial income tax as it was supposed to be, resulting in lower payments for Veterans.

The OVO will continue to examine benefits and services delivered to Veterans and their families to ensure they receive what they are entitled to.


“I am committed to the fair treatment of all Veterans. When Veterans do not receive what they are owed, it has negative impacts not just on them, but on their families too, and can lead to much frustration with the government. In this case, no matter the amount, this is money that should have been in Veterans’ pockets. I am pleased that VAC is now working on a plan to re-pay those who are affected.”

- Guy Parent, Veterans Ombudsman

Quick Fact

VAC estimates that approximately 270,000 Veterans, former members of the Canadian Forces or Royal Canadian Mounted Police, Survivors, and their estates are affected by this error. 

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