The Conservative party is criticizing a move by the federal Liberals to retroactively adjust a law, which some legal experts believe is an attempt to avoid compensating veterans for a federal error that may have led to overcharging them thousands of dollars. The government’s budget implementation act includes an amendment that aims to “clarify” the calculation method for long-term care expenses for veterans. Lawyers involved in a potential class action lawsuit argue that the federal government has been overcharging veterans for long-term care due to a long-standing miscalculation.
If approved, the retroactive amendment could potentially halt ongoing litigation seeking reimbursement for affected veterans and their families. Conservative veterans affairs critic Blake Richards expressed his concerns, stating that the government should have openly acknowledged its mistake instead of discreetly burying the amendment on page 375 of the budget implementation act.
In October 2024, CBC News revealed that the federal government may have misinterpreted its own law, according to sources familiar with the matter. The issue, known internally within the department, was reportedly left unaddressed. While exceptions exist, veterans enrolled in the department’s long-term care program are generally only required to cover the costs of accommodation and meals. These costs are supposed to be based on the lowest room and board expenses in the most affordable province, including territories as defined by federal law.
Despite this, Veterans Affairs had been interpreting “province” to exclude territories, even though the Northwest Territories had the most affordable rates, potentially resulting in veterans being overcharged thousands of dollars annually. The federal government is now seeking retroactive changes to the law to exclude territories from the definition of “province,” effectively enshrining the error into legislation, as per lawyers representing veterans in a potential class-action lawsuit.
The budget bill must navigate through a minority Parliament for approval, and Richards indicated a willingness to amend it to remove the contentious section. Finance Minister François-Philippe Champagne’s spokesperson defended the amendments, stating that they aim to clarify the existing methodology for benefit calculations and that the government has the authority to make such adjustments. The spokesperson highlighted that legislation can apply to past events if there is a clear legislative intent for such application.