Up to $817 million in benefit payments could go to eligible Canadians

Former and current Canadian veterans and RCMP members could be eligible for payments after a class action settlement.

Federal court approved the settlement, which could pay up to $817 million in total claims to eligible, former and current members of the Canadian Armed Forces and the RCMP or their family members, according to a press release from law firm Koskie Minsky.

The claim alleged Veterans Affairs Canada miscalculated and underpaid certain disability pension benefits between Jan. 1, 2003 and Dec. 31, 2023.

In 2018, the Minister of Veterans Affairs Canada acknowledged an “accounting error” resulted in the miscalculation of the provincial tax credits to the wage rate, which meant lower payments to eligible recipients of certain pension benefits, according to court documents.

The error amounted to approximately $165,000,000 and Veterans Affairs Canada made retroactive, corrective payments but the payments did not include interest, according to court documents. And lawyers found more errors in the calculation of some benefits.

The class action case was brought on behalf of over 330,000 class members.

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Koskie Minsky estimates that at least $435 million and up to $817 million will be paid out depending on total claims.

“It is important to ensure that veterans receive their proper financial consideration,” said David White of Koskie Minsky LLP. “I am pleased that has been achieved through this Agreement and that the Class of disabled veterans will receive compensation.”

Eligible veterans and former or current RCMP members who receive disability pensions will automatically receive settlement payments from Veterans Affairs Canada by direct deposit or cheque later this year.

Estates, family members of deceased class action settlement members must submit a claim in writing by March 19, 2025. The claim can be submitted online here.

People can also call KPMG LLP, the audit, tax and advisory firm handling the claims, at 1-833-839-0648.

More information on this case and court documents can be found here.