Retired combat veteran ordered to repay benefits he never actually received
Government tries to recover extra $3,000
• As soon as the money appeared in his bank account, he knew somebody would eventually come looking for it.
Earlier this summer, retired Canadian Forces member and Afghanistan veteran Aesop Zourdoumis got an email from Veterans Affairs Canada ( VAC) saying that, due to an apparent underpayment of his veterans benefits, he should expect a one-time payment of $10,097.20.
“I'm not stupid — I've worked for the public service long enough to know that when that happens, they're taking it back,” he told the National Post.
“I took that money and stuffed it aside, knowing that somebody's going to want that back one day.”
The letter, reviewed by the National Post, said Zourdoumis should expect a payment of $7,103.37 within two weeks: the balance owed, minus deductions by Canada Revenue Agency.
But when the government realized its mistake and came looking for the money, Zourdoumis was told to repay the full sum of $10,097.20, and that recovering the nearly $ 3,000 already deducted by CRA was up to him.
“I'm not going to pay out what would be an extra $2,900 and then try to recover it later,” he said. “I'm not going to try to recover money from the federal government, that's impossible.”
Zourdoumis was a combat engineer with over 20 years of experience in the military, including tours in Afghanistan.
He was medically released from the service in 2019, and like others in his situation took advantage of programs offered by Veterans Affairs Canada, including income replacement and what's referred to as “Additional Pain and Suffering” compensation benefits.
When Zourdoumis received the surprise $7,103.37 lump-sum payment from Veterans Affairs, he deposited it into his account on July 6.
Just as he predicted, the letter dated Aug. 30 explained the adjustment was an error, and the department's overpayments unit would soon be in touch to recover the full amount.
A third letter, received Sept. 12, said that starting in October, $200 would be deducted from his APS benefits for the next 50 months until the government recovered the full $10,097.20.
“They didn' t want to recover the $ 7,103.37 I was paid, they wanted $10,097.20,” he said.
He called Veterans Affairs to sort it out, and was told his file would be marked urgent and somebody would get back to him within 24 hours.
Nobody did.
Zourdoumis said the erroneous $10,000 in benefits will also place him into a higher tax bracket for 2022. To avoid it, he was told he could file a supplementary T4 and amend his annual income, but only after the money was repaid, which is not scheduled to happen until 2026.
“I was meant to take this hit for four years, then I would get a slip in the mail and be able to recover that $2,900,” he said.
Zourdoumis, who found himself a successful technology sector career after his service, says he's fortunate to have made out well after his release from the service, but knows many who served alongside him aren't doing as well.
“Regardless of the outcome, this is going to happen again — and it's going to happen to somebody who is broken,” he said.
“I know enough guys who, if they got (an expected $10,000) it would go right down their throats — or (are) so destitute and poor because they just can't function, that this is the thing that would allow their kids to go to school. They're going to spend it.”
Veterans Affairs spokesperson Marc Lescoutre declined to comment, citing privacy.
“Each situation in which a client may be found to be in an overpayment situation is specific to that individual and is handled according to VAC'S policies and processes,” Lescoutre said, adding VAC doesn't track information on overpayments as “the most frequent are very minor and quickly resolved.”
Frank Caputo, the Conservative party's veterans affairs critic, told the National Post that it appears the government is going out of its way to be unreasonable.
“It is unacceptable that our veterans and their families are being placed in an impossible situation by the Liberal government,” he said, calling on Veterans Affairs Minister Lawrence Macaulay to get involved and ensure it doesn't happen again.
“Veterans deserve a government that will run their benefits properly, not ruin their lives.”
Zourdoumis, who said he's received nothing but respectful and top- notch service from Veterans Affairs Canada in the past, said the ordeal has left him both upset and concerned — particularly for veterans in dire situations.
“They're getting all their money back,” he said.
“But their expectation is that I carry a debt load for four years, and then somehow try to recover it from CRA.”
He said the solution for Veterans Affairs is obvious: “F--king fix this,” he said.