The Parliamentary Standing Committee on Veterans Affairs released its recommendations on the “marriage after 60” clause — and the influence of the Association’s own brief is evident.
The National Association of Federal Retirees (Federal Retirees) has long advocated for modifications to the Canadian Forces Superannuation and RCMP Superannuation Acts to modernize them so that they reflect changing attitudes and realities on marriages later in life.
During 2022, the Parliamentary Standing Committee on Veterans Affairs (ACVA) studied the clauses that do not allow veterans’ spouses to receive a survivor benefit if they married after the veteran turned 60. A similar provision affects public service pensioners, but was not examined by ACVA.
“We know this is an issue that impacts veterans and their survivors,” Pizzino said. “And veterans have been promised it would be resolved for long enough. We need to define the issue, and ensure potential solutions are fair, equitable and support the long-term sustainability of hard-earned pensions for members and veterans of the Canadian Armed Forces and the RCMP.”
The Association also submitted a brief, prepared by Imbeau, that explained the history of the “Marriage After 60” clause, highlighted relevant court cases, compared what existed in other plans and critiqued the legislation.
“Veterans deserve accountability,” Imbeau writes. "A report is due on the progress and outcomes of the $150-million Veterans Survivors Fund administered by Veterans Affairs, including but not limited to how much of the fund has been spent, to what end and forward plans. Veterans were promised the marriage after 60 clauses would be eliminated. That has not happened, and they deserve to know not only why not but also what the studies have revealed.”
In December 2022, ACVA released its final report titled Survivor Retirement Pension Benefits (Marriage After 60). The report borrowed heavily from the Association’s own submission and contained nine recommendations.
The committee’s recommendations include the tabling of a document to explain the reasons for the “marriage after 60” clause. The report also demands that the Optional Survivor Benefit (OSB) be made available to common-law spouses, for the immediate distribution of the $150 million Veterans Survivors Fund to survivors focusing on those most in financial need, and that the Government of Canada repeal the “marriage after 60” clause in both the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act.
As an organization that supports data-driven, sound public policy that seeks to improve the financial security, health and well-being of its members and all Canadians, the Association is concerned that some recommendations are built on a false premise and should be amended.
“Currently, in the first year of marriage after the age of 60, veterans are given the option to reduce their pension to ensure their spouse receives a survivor pension, much like you would purchase life insurance. This is called the Optional Survivor Benefit,” explains Imbeau.
“However, one of the report’s recommendations asks “that the department responsible for pension benefits return to the veteran any funds that were put aside through the Optional Survivor Benefit program, upon the death of the spouse of the veteran, if the spouse passes away before the veteran.” However, while the OSB is not ideal and could be improved, there are no funds that are put aside. Instead, the veteran chooses between providing a survivor pension of 30 per cent, 40 per cent and 50 per cent of their own pension, which will be reduced (depending on the amount chosen) as payment for the ability to leave it to their spouse,” continues Imbeau.
What’s next?
The Association is calling for a similar review for the federal public sector pension plan and demanding proper scoping of the extent and impact of these recommendations to ensure that any policy change, while well-intentioned, would not have unintended consequences on the retirement income of veterans and other federal retirees, now and in the future.
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