Budget 2025 proposes changes that could affect RCMP disability pensions, and we’re taking a closer look at what this may mean for those who served.
Budget 2025 puts forward a number of wide-ranging proposals, many of which are still unclear and have caused understandable concern. One of them seeks to modify the indexation of RCMP disability pensions.
Currently, RCMP disability benefits increase annually by the greater of either the Consumer Price Index (CPI) or a formula that considers the average wages of certain categories of public sector employees. The RCMP Superannuation Act states that disability awards are set in accordance with the Pension Act, which outlines pensions and other benefits for veterans of the Canadian Armed Forces (CAF).
Budget 2025 proposes to modify the escalation formula of the RCMP disability pension so that the benefit, and other related benefits, are indexed based on the CPI alone, effective January 2027. Concerningly, the budget suggests that this move would save $5.8 billion over four years.
The RCMP disability pension provides essential financial support to RCMP members affected by a service-related injury or illness. Cuts to these benefits can undermine the financial security, health and well-being of those RCMP members who were injured while serving Canada.
The budget also states that the proposed amendments would, “clarify the escalation formula for the Disability Pension Benefit and related benefits for CAF members, veterans and serving and retired RCMP members (including on a retroactive basis).”
The government has been unclear about the intention behind this measure. CBC reported that the finance minister’s office has since indicated, “CAF veterans would continue to receive indexation based on the higher of the CPI or the wage rate increase, consistent with the current approach.”
Association CEO Anthony Pizzino notes, “the Association will be closely monitoring any legislative changes and will engage the finance minister to clarify this measure, as well as emphasize the importance of protecting disability pension benefits.”