After fighting for 45 years for a military pension, the government has told decorated Second World War bomber Clifton Wenzel he will finally receive his due.

Defence Minister Gordon O'Connor phoned Wenzel on Friday to tell him he would receive a $1,136,000 award for the injustice done to him so many years ago, Wenzel told CTV Newsnet on Tuesday.

"It's also taxable, and so I think I'll pay about 47 per cent back to the government."

The act is the final chapter for the war hero, who has been fighting the federal government since 1961 for a reduced pension.

It began when Wenzel decided to take early retirement at the age of 39. He had been with the forces since the age of 17 -- first with the Army and then the Air Force.

He flew numerous missions and earned the Distinguished Flying Cross and the Air Force Cross decorations.

However, in 1961, he told military officials that he felt he would be better able to provide for his young family as a civilian than on his air force salary of $800 per month.

Under the rules at the time, an officer who had not reached the compulsory retirement age of 45 and who had more than 10 years of regular service but less than 25 years of service was entitled only to a return of his or her contributions and would not receive a pension.

There was a loophole in those rules. That loophole gave the federal government some discretion to award annuities to officers who had not yet completed 25 years of service.

Unfortunately, there was an error in the calculation of Wenzel's pensionable service that gave the impression he had served less than 20 years -- which appeared to be the threshold for a partial pension.

The military denied Wenzel's request for a pension. Instead, it refunded all the contributions he made -- a little less than $5,000 -- with no interest.

"I was particularly incensed because I transferred to the Air Force Reserves ... and for the military to say that it was not in the public interest to go to the reserves, it intrigued me and infuriated me," he said.

Over the years, he took his battle up the military chain of command and through the courts. Retired Col. Michel Drapeau, now a lawyer with the Ottawa law firm of Barrick Poulsen, eventually took on his case.

Yves Cote, the ombudsman for the Department of Defence and the Canadian Forces, also investigated Wenzel's case.

In a report released late last year, Cote found that the military had not treated Wenzel fairly and that Wenzel's department records were often inaccurate and incomplete.

"In the spirit of fairness that is at the very heart of our mandate, I recommend that the damages he suffered be repaired with dignity and honour, that the injustice be acknowledged and that appropriate compensation be paid to Mr. Wenzel," he said.

Former Liberal defence minister Bill Graham apologized and promised to review the case in light of Cote's recommendations.

After his military service, Wenzel went on to a long and successful career as an airline industry executive. He worked for a time with Sir Freddie Laker, the British entrepreneur who started up SkyTrain, the first-ever no-frills airline. Wenzel also started up his own airline. He also ran some other businesses.

Wenzel said he'll invest the money and help out his two children.