In a major legal development, the Federal Court of Canada has recently approved a landmark $817 million settlement, bringing closure to a longstanding class-action lawsuit. The case involved the underpayment of disability pension benefits to veterans of the Canadian Armed Forces (CAF), the Royal Canadian Mounted Police (RCMP), and their survivors.
The lawsuit was filed by several representative plaintiffs, including Dennis Manuge, Raymond Toth, Betty Brousse, Brenton MacDonald, Jean-Francois Pelletier, and David White. They contended that Veterans Affairs Canada (VAC) had failed to properly adjust disability pension payments for inflation, leading to veterans and their families receiving significantly lower benefits than they were entitled to over a span of two decades. This class action aimed to rectify these underpayments and ensure fair compensation for those affected.
Eligibility for the Settlement
This settlement is available to both current and former members of the Canadian Armed Forces (CAF), the Royal Canadian Mounted Police (RCMP), as well as their spouses and dependents.
To qualify, individuals must have received disability pensions, disability awards, or other benefits from Veterans Affairs Canada since January 1, 2003. Additionally, these benefits must have been impacted by the annual adjustment of the basic pension. The settlement covers the period from January 1, 2003, to December 31, 2023.
How Many People Are Affected?
The settlement will affect more than 330,000 class members, making it one of the largest class-action settlements in Canadian history. These members include both veterans and their families, who were eligible for or receiving disability pensions or related benefits during the covered period.
Settlement Terms
Under the terms of the settlement, each eligible class member will receive a one-time payment. This payment is estimated to be approximately 2% of the total disability benefits they received between 2003 and 2023. The total compensation to be distributed will range between $435 million and $817 million, depending on how many claims are validated and processed.
Automatic Payments and Claim Process
For those who are already receiving disability pensions from Veterans Affairs Canada, the settlement payments will be made automatically. This means they will not need to take any additional action to receive their compensation.
However, individuals who are not currently receiving these benefits must file a claim to be eligible for the settlement. The deadline for submitting claims is March 19, 2025.
Claim Deadline and Final Approval
The final approval hearing for the settlement was held on December 18, 2023. During this hearing, the Federal Court reviewed the terms of the settlement to ensure that it was fair and adequate for all class members. With the approval in place, affected individuals must now ensure they file their claims on time to receive the settlement.
How to File a Disability Pension Claim
Here are the steps to submit your claim form:
- Visit the Official Veterans Affairs Canada Website: Navigate to the official site to access the disability pension claim form.
- Fill Out Required Information: Complete the form with necessary personal details, service history, and documentation to support your claim, such as pension records, benefit statements, and other relevant paperwork.
- Read Instructions Carefully: Review all instructions provided to ensure that your submission is accurate and complete.
- Attach Required Documents: Submit clear and legible copies of all the necessary documents.
- Double-Check Your Submission: Before submitting your form, ensure all sections are filled out properly and that all required documentation is included.
- Submit Your Form: Once submitted, you will receive a confirmation (via mail or electronically) that your claim has been received.
- Wait for Processing: The claims team will review your submission to verify eligibility and calculate your settlement amount. This may take some time, so it’s important to be patient and monitor the official settlement website for updates.
- Receive Payment: Once processed and approved, you will receive your settlement payment.
