O'Toole announces new $70K lump sum payment for critically wounded troops

The Harper government is offering yet another new lump-sum benefit to the country's most critically wounded soldiers, hoping to silence complaints that the existing pain and suffering awards are too cheap.

As first reported Sunday by CBC News, the new critical injury benefit unveiled Monday by Veterans Affairs Minister Erin O'Toole will — once approved by Parliament — provide a $70,000 tax-free award to injured soldiers and veterans.

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The one-time payment is meant to complement the existing lump sum awards system, which has been constantly maligned since being introduced in 2006 as part of the federal government's overhaul of veterans benefits and entitlements.

The proposed new scheme is separate from the disability awards system, which a Commons committee has said is less generous to soldiers wounded on the battlefield than the courts are to civilians hurt in workplace accidents.

"It is a tax-free, immediate, personal payment in recognition of their stress and hardship in the days and weeks following a traumatic event, such as an attack in theatre, or a training accident here at home," O'Toole told a news conference.

A department backgrounder notes when other eligible benefits are included, support for soldiers often exceeds what the courts award.

The new benefit is retroactive and troops injured since 2006 can apply, O'Toole said.

"Eligible military members and veterans will receive this $70,000 benefit, even if their medical condition never results in a permanent disability," he said.

"I hope it lets them know that we recognize they deserve to be compensated for their pain, their surgeries, their prolonged hospitalizations, the stress and hardship they face on their road to recovery."

Afghan veterans' lawsuit

The system of lump sum payment for pain and suffering — known as non-economic loss awards — has been a lightning rod for controversy for the Conservatives. It's also one of the reasons the federal government is facing a class-action lawsuit from angry Afghan veterans.

Under the existing system, the maximum tax-free award is $306,698, which is considerably lower than the benchmark civilian award of $342,500, established in 2012 by the B.C. Supreme Court.

The government has heard complaints for years. In 2011, it allowed ex-soldiers the choice of whether to take the lump sum or have it paid out in stages, but did not change the sliding scale of payments.

O'Toole's announcement Monday is just the latest in a series of initiatives, all of which are part of a calibrated effort to rebuild bridges with a frustrated and disenfranchised veterans community.

Some veterans' advocates — traditionally a solid constituency for the Conservatives — have said they intend to actively campaign against the Tories in the next election, scheduled for October of this year.

In recent weeks, O'Toole has introduced a new proposed retirement income security benefit for moderately and severely wounded soldiers without military pensions and new programs for caregivers.

The government has also expanded access to the permanent impairment allowance, which provides the most severely disabled veterans with up to $2,800 a month in tax-free income for life.