Staffing issues to blame for delay, says Department of National Defence
Canadian military members who are retiring in the near future will have a financial cushion once they are released from service.
That’s because they will face delays in receiving “release benefits”, according to the Department of National Defence.
The delays will be for severance, back pay and accumulated vacation payouts. Pensions are not affected, both the defense department and Public Services and Procurement Canada said, according to a CBC report.
The delayed payments are the responsibility of the director general of compensation and benefits, which is under Military Personnel Command, according to the report.
Many Canadian workers are delaying retirement due to financial reasons, according to previous reports.
How long will the delay be for veterans?
The military’s transition unit is suggesting that members retiring soon must find a way to be financially sufficient for up to half a year following their exit from the service.
"We received an advisory from Transition Unit East Ontario regarding pension applications for members about to be released," said the Ontario transition centre's July 16 note, according to the CBC report.
"They are expecting a standard delay for pension application or payments of 3-4 months post-release. For those members soon to be retiring, we suggest that they plan accordingly such that they can be financially self-sufficient for 5-6 months."
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The military's overall transition group "is monitoring the situation and will try their best to mitigate the situation," the centre’s July 17 note said, according to the report.
For the time being, the transition unit is prepared to expedite outside applications to insurance companies for members with medical conditions, and even provide "emergency financial assistance" for those in desperate need.
"We are working at both hiring additional staff as well as improving the system to increase capacity," Lt. Meg Baxter, of the military, said in the CBC article.
Currently, the federal government is facing a class-action lawsuit from former members of the military who, several years ago, had to wait months for their pension cheques. The class action lawsuit was certified in 2022. It will proceed to trial in November this year, according to the report.
Amid the rising cost of living, Canadians are struggling to save up for retirement, and many have nothing saved for life after work, according to previous reports.