Background
On 17 January 2024, the Federal Court approved a settlement in a certified class action involving alleged underpayments of certain disability pension benefits administered by Veterans Affairs Canada from 1 January 1 2003, to 31 December 2023 (payable to members or Veterans of the Canadian Armed Forces and the Royal Canadian Mounted Police and their spouses, common-law partners, survivors, other related individuals, and estates).
For the purposes of the Settlement Agreement, affected benefits include:
- Pension Act pensions for disability;
- Pension Act pensions for death;
- Pension Act attendance allowance;
- Pension Act allowance for wear and tear of clothing or for specially made apparel;
- Pension Act exceptional incapacity allowance;
- Veterans Well-being Act clothing allowance;
- Civilian War-related Benefits Act war pensions and allowances for certain civilians including salt water fishers, overseas headquarters staff, air raid precautions workers, and injury for remedial treatment of various persons and voluntary aid detachment (World War II);
- Flying Accidents Compensation Regulations flying accidents compensation; and
- RCMP Disability Benefits awarded in accordance with the Pension Act.
Please note that Disability Awards received between 1 April 2006 and 31 March 2019 and Pain and Suffering Compensation received after 1 April 2019 are not affected by this Settlement Agreement.
If you currently receive a monthly disability pension from VAC, you will receive your Settlement payment automatically. No application is required.
If you are claiming on behalf of a deceased Veteran of the CAF or RCMP, including as the executor, trustee, administrator of an estate, or a family member, you must submit a claim form to KPMG, the court-appointed administrator responsible for handling claims.
You might also qualify for a settlement payment for deceased dependents of Veterans who were class members, such as a deceased spouse or dependent child who received a disability pension. Please note that you'll need to fill out a separate claim form for each class member you're claiming for.
The deadline to submit a claim is 19 March 2025.
Questions and Answers
- What is this class action about?
- Who are the class members?
- Do I need to pay to participate in this class action?
- How are payments for this settlement being administered?
- I think I may be entitled to make a claim on behalf of a deceased family member or an estate. Who do I contact to make a claim?
- How many Veterans are part of this settlement?6. When can I expect to receive my settlement payment?
- How much can I expect to receive from this settlement?
- Who are the lawyers for this class?
- Where can I find more information on the class action, and who can I contact if I have questions?
- What is KPMG’s role in the administration of this Settlement Agreement?
- I am the estate representative of a Veteran and of a Survivor or Dependent who had benefits in their own right. Do I need to submit multiple claims?
Q1. What is this class action about?
A1. Certain benefits that VAC administers must be adjusted each year. The plaintiffs and the class claim that VAC miscalculated disability pension-related benefit adjustment rates from 2003 to the end of 2023, resulting in underpayments to class members.
Q2. Who are the class members?
A2. The class includes all members and Veterans of the Canadian Armed Forces and Royal Canadian Mounted Police, and their spouses, common-law partners, dependants, survivors, orphans, estates, and family members who received, at any time between 2003 and 2023, disability pensions, and other benefits that were affected by the annual adjustment of the basic pension under section 75 of the Pension Act).
Q3. Do I need to pay to participate in this class action?
A3. Legal fees will be automatically calculated and deducted from the settlement amount you receive.
Q4. How are payments for this settlement being administered?
A4. If you currently receive a monthly disability pension from VAC, you will receive your Settlement payment automatically. No application is required.
Living class members, estates, survivors, and family members who do not receive monthly Disability Pensions directly from VAC must submit a claim form to KPMG, the court-appointed claims administrator. The form is located on KPMG’s website and must be completed and submitted by 19 March 2025.
Q5. I think I may be entitled to make a claim on behalf of a deceased family member or an estate. Who do I contact to make a claim?
A5. Settlements for deceased family members and estates are being administered by KPMG, the court-appointed third-party administrator. The claim form is available on KPMG’s website and must be completed and submitted by 19 March 2025.
Q6. When can I expect to receive my settlement payment?
A6. Payments for class members that are part of the VAC payment group are expected to begin no later than December 2024.
If you are part of the Claims Based Payment Group, once you submit your Claim Form with all fields completed and signed, no further action is required until it is time for payments to be made. KPMG are expected to begin making payments to class members and estates who do not already receive monthly payments from VAC in the fall of 2024. KPMG expects that payments to family members of deceased class members will begin in March 2025.
Q7. How much can I expect to receive from this settlement?
A7. Each class member is entitled to a payment of about 2 percent of all affected benefits they received between January 2003 and December 2023. Legal fees will be deducted from this amount.
The average settlement payment for class members is approximately $2,000.00, with around 50 percent of class members receiving up to $1,000.00.
Q8. Who are the lawyers for this class?
A8. The lawyers for this class (Class Counsel) are: Gowling WLG (Canada); Koskie Minsky LLP (Toronto); McInnes Cooper (Halifax); Michel Drapeau Law Office (Ottawa); and Murphy Battista LLP (Kelowna and Vancouver).
If you have questions for Class Counsel, please call 1-866-545-9920 or email info@vetspensionerror.ca.
Q9. Where can I find more information on the class action, and who can I contact if I have questions?
A9. More information on this class action, including the court-approved Notice of Settlement, Final Settlement Agreement, and contact information for class members who wish to know more, can be found at vetspensionerror.ca.
Inquiries can also be made by calling Class Counsel at 1-866-545-9920 or by emailing: info@vetspensionerror.ca.
Q10. What is KPMG’s role in the administration of this Settlement Agreement?
A10. In February 2024, the Federal Court appointed KPMG as the administrator for this class action Settlement Agreement. KPMG’s role is to receive, review, approve, and pay claims for living class members, estates, survivors, and family members who do not currently receive monthly Disability Pensions directly from VAC. KPMG will not be administering settlement payments for Class Members who do currently receive monthly Disability Pensions from VAC.
Q11. I am the estate representative of a Veteran and of a Survivor or Dependent who had benefits in their own right. Do I need to submit multiple claims?
A11.Yes. You will need to submit an separate claim for each individual who received Affected Benefits during the Relevant Period (1 January 2003 to 31 December 2023).
Example: John Doe was a Veteran receiving Affected Benefits between 2003 until his death in 2010. His spouse, Jane Doe received Survivor benefits upon John’s death. Jane passed away in 2020. In this case, the claimant would submit two claim forms, one for John and another for Jane.