Merchant Navy Veterans to Keep Federal Payment

Merchant navy veterans or their surviving spouses, living in homes for special care in Nova Scotia, can keep the lump-sum payment from the federal government for their years of service, Health Minister Jamie Muir announced today.

"Premier John Hamm, Community Services Minister Peter Christie and I all agree, merchant navy veterans have waited far too long for compensation from the federal government," said Mr. Muir. "We are not going to diminish that well-deserved recognition of their valuable contributions and sacrifice during wartime."

The federal government recently awarded merchant navy veterans a lump-sum, tax-free payment of up to $24,000 in benefits.

Under the Social Assistance Act and its regulations in Nova Scotia, an individual's income and assets, except for their designated home, can go toward their cost of care if they are a resident of a home for special care. Similar policies are in place in other Atlantic provinces.

In this case, Revenue Canada classified the award as non- taxable/non-declarable income. The province's decision is consistent with the intention of the award.