Military, RCMP families' benefits boost would add $6-billion liability: PBO

A new analysis says an NDP proposal to boost pension benefits for families of deceased Canadian Forces and RCMP veterans could hurt Ottawa's bottom line by more than $6 billion.

The NDP private member's bill calls for raising retirement benefit payments to surviving spouses and children to 70 per cent of a contributor's annual allowance from the current level of 50 per cent.

The federal budget watchdog estimates such a change could create an additional pension liability of nearly $6.4 billion for the government.

The budget office says that Treasury Board policy indicates the entire liability would hit Ottawa's books, net of any surplus in the account — all in the year the change is approved.

The parliamentary budget office also estimates the proposed legislation would create an annual service cost of $152 million for the federal government.

The private member's bill was introduced in April by New Democrat MP Irene Mathyssen. It has passed the first-reading stage, but opposition proposals typically have little chance of being adopted.