The Federal Court of Canada has approved an $817 million settlement to resolve a long-standing class-action lawsuit over the underpayment of disability pension benefits to veterans of the Canadian Armed Forces (CAF), the Royal Canadian Mounted Police (RCMP), and their survivors. This landmark decision addresses two decades of miscalculated benefits by Veterans Affairs Canada (VAC), which failed to properly adjust payments for inflation.
Background of the Lawsuit
The lawsuit was initiated by representative plaintiffs, including Dennis Manuge, Raymond Toth, Betty Brousse, Brenton MacDonald, Jean-François Pelletier, and David White. They argued that the miscalculations had led to veterans and their survivors receiving significantly lower payments than entitled.
The settlement aims to rectify these discrepancies, providing fair compensation to affected class members and their families.
Eligibility for the Settlement
The settlement applies to:
- Current and former members of the CAF and RCMP.
- Their spouses and dependents.
Criteria:
- Must have qualified for disability pensions, disability awards, or other benefits from VAC between January 1, 2003, and December 31, 2023.
- Benefits must have been impacted by the annual adjustment of the basic pension.
Who is Affected?
Over 330,000 class members are impacted, making this one of Canada’s largest class-action settlements. This group includes veterans, RCMP members, and their families.
Settlement Terms
Each eligible class member will receive a one-time payment.
- Amount: Approximately 2% of the total disability benefits received during the settlement period (2003–2023).
- Total Compensation: Ranges from $435 million to $817 million, depending on validated claims.
How Payments Are Made
- Automatic Payments:
Class members currently receiving disability pensions from VAC will automatically receive their settlement payments. - Claim Filing Required:
Those not currently receiving VAC benefits must submit a claim form to be eligible.
Claim Deadline: March 19, 2025
Steps to File a Claim
- Access the Form:
Visit the Veterans Affairs Canada website to access the claim form. - Provide Personal and Service Details:
- Enter personal and service information.
- Include documentation proving eligibility and benefits received (e.g., benefit statements, pension documents).
- Fill Out the Form:
- Carefully follow the instructions.
- Double-check all information for accuracy.
- Attach Documentation:
- Attach clear and legible copies of required documents.
- Submit the Form:
- Submit the completed form via the official website or other specified methods.
- You will receive confirmation once the form is received.
- Processing and Payment:
- Claims will be reviewed to verify eligibility and calculate payments.
- Payment will be issued once the claim is approved.
Final Approval and Updates
The Federal Court held a final approval hearing on December 18, 2023, to review and ensure fairness of the settlement terms.
Eligible members are encouraged to regularly check the official Veterans Affairs Canada website for updates on the claim process and payment status.
This settlement marks a significant step toward addressing the financial hardships faced by veterans and their families, ensuring fair compensation for years of underpaid benefits.
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