Canadian veterans who were receiving disability pension benefits during the twenty years from 2003 to 2023 may be eligible for a class action settlement payment, which is non-taxable. However, it is possible that many survivors or families may be unaware of the settlement and do not know the steps to take to claim a settlement payment before the fast-approaching deadline of March 19, 2025.
The Final Settlement Agreement (effective March 19, 2024) for the Miscalculation of Disability Pensions Class Action addresses an alleged miscalculation and resulting underpayment of disability pension benefits for members and Veterans of the Canadian Armed Forces and the Royal Canadian Mounted Police and their spouses, common-law partners, dependents, survivors, or estates.[1]
The Federal Court has approved the settlement value of up to $817.3 million. The settlement payment for each Class Member is calculated based on a formula that considers the sum of all affected benefits paid to a Class Member during the relevant period from 2003 to 2023.
According to the Canadian Military Engineers Association, the average claim is about $2500. They also note that at least 2,000 people are eligible for payments over $10,000, and 40 people are eligible for payments over $35,000.[2]
How many people still living could be affected by this settlement? For 2024-2025, an estimated 204,400 VAC veterans and their survivors could be affected.[3] The breakdown of veterans follows:
- War Service Veterans – 2300; Survivors 20,300
- Canadian Armed Service (CAF) Veterans – 134,400; Survivors 20,900
- Royal Canadian Mounted Police (RCMP) Veterans – 24,700; Survivors 1,900
However, it should be noted that the settlement period goes back to 2003, and the court documents estimate that over 300,000 people could be affected. [4]
Two types of Class Members are eligible:
- Those Class Members who currently receive disability pensions directly from Veterans Affairs Canada (VAC) are part of the VAC Payment Group. Members of this group will automatically receive settlement payments from VAC.
An example is an eligible veteran who died in July 2024. The estate was going through probate in late 2024, and the executor received an automatic settlement payment to the estate from VAC.
- Living Class Members, estates and survivors who do not currently receive disability pensions directly from VAC are part of the Claims Based Payment Group and will be required to file a Claim Form. The Claim Form must be received electronically no later than March 19 2025, 11:59 PM (Eastern Time), or if mailed must be postmarked no later than March 19 2025. [5]
An example is an eligible 96-year-old veteran who was receiving a disability pension for a war injury and died in 2017. His estate is eligible for a settlement payment and the executor has submitted the Claim Form.
Many families of veterans who have passed away since the settlement of this class action suit may not be aware they can claim a settlement dating back to 2003. Executors of estates for veterans should also be aware of this opportunity to claim a settlement. Please share this information with your advisors and relevant clients or past clients so that Living Class Members, estates and survivors can submit a Claim Form by the March 19, 2025 deadline.
[1] https://vetspensionerror.ca/
[2] https://cmea-agmc.ca/class-action-suit-manuge-v-hmk-notice-class-members-and-families
[3] https://veterans.gc.ca/en/news-and-media/facts-and-figures/10-demographics
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