What is the Miscalculation of Disability Pensions Class Action?
This class action concerns allegations against the Government of Canada for miscalculating certain disability pensions and benefits administered by VAC.
The Federal Court has defined the Class as follows:
All members and former members of the Canadian Armed Forces and Royal Canadian Mounted Police, and their spouses, common-law partners, dependents, survivors, orphans, and any other individuals, including qualifiable estates of all such persons, who received, at any time between 2003 and December 2023, disability pensions, and other benefits from VAC that were affected by the annual adjustment of the basic pension under section 75 of the Pension Act.
Class Members qualifiable for compensation fall into one of two groups: the “VAC Payment Group”, and the “Claims Based Payment Group”.
The “VAC Payment Group” includes Class Members with an existing payment relationship with VAC. VAC will pay this group automatically through the usual payment process. These group members did not have to make a claim.
Class Members who do not have an existing payment relationship with VAC fall into the “Claims Based Payment Group”. To receive payment, Class Members in this group were required to submit a Claim Form and the Administrator will assess their claim.
Please note that the time has now passed to object to the settlement or class counsel fees. The time has also passed to opt out of this class action.
Please note that the claims period has ended. The deadline to submit a claim was March 19, 2025.
The personal information provided in your claim form may be disclosed to Class Counsel, VAC, or an auditor, if applicable, for the purpose of: validating identity; carrying out any lawful investigations to confirm that you are a qualifiable Class Member; processing of claims; development of payment strategy; and/or reporting obligations. KPMG Canada may process applications using automation to support processing of decision-making. Any personal information collected, used, or stored by KPMG Canada as part of this process will be in accordance with KPMG Canada’s Privacy Policy.
For more information on the process and your rights, please refer to the Court documents on the Documents page.
Below are the court documents that are available for your reference.
Short Form Notice
[PDF 259 KB]
Long Form Notice
[PDF 293 KB]
Final Settlement Agreement, 8 November 2023
[PDF 258 KB]
Common Questions
Class Members with a current payment relationship with VAC have or will receive payments automatically. As of December 2024, most settlement payments to the VAC payment group have been issued by VAC via direct deposit or through your usual method of payment.
If you do not have a current payment arrangement with VAC, you were required to submit a Claim Form to the Administrator to be eligible to receive compensation under the Settlement. Please note that the Claims Period has ended. The deadline to submit a claim was March 19, 2025.
Claims processing times will vary depending on the completeness of information provided and the volume of claims received. The payment of Living and Estate claims has begun and the payment of Family claims are expected to begin in April/May 2025.
The Claims Administrator has until March 19, 2026 to issue all payments. Please note that the Claims Administrator cannot provide claimants with specific updates about claims or payments.
The amounts received as part of this settlement are not taxable.
Settlement Overview
The Final Settlement Agreement (FSA) 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.
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 period from 2003 to 2023 (“relevant period”).
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.
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 were required to file a Claim Form. Please note that the claims period has ended. The deadline to submit a claim was March 19, 2025.
The FSA provides that, all Class Members that have not opted out release the government from all potential claims arising from the miscalculation.
Eligibility and Claims
A Class Member is qualifiable for compensation if they received one or more of the below benefits at any time during the relevant period from 1 January 2003 to 31 December 2023:
• Pension Act pension for disability;
• Pension Act pension 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 saltwater 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 relating to compensation for flying accidents.
• RCMP Disability Benefits awarded in accordance with the Pension Act.
If you are a Class Member who is part of the Claims Based Payment Group, you needed to submit a completed and signed Claim Form to the Claims Administrator within the Claim Period. Please note that the claims period has ended. The deadline to submit a claim was March 19, 2025.
For inquiries related to the Affected Benefits or your status as a Class Member, contact Class Counsel:
- Phone: 1-866-545-9920
- Email: info@vetspensionerror.ca
Claim Submission Process
The claims period has now ended. The Claims Administrator is in the process of reviewing all claims received.
Processing times will vary depending on the completeness of information provided and the volume of claims received. The payment of Living and Estate claims has begun and the payment of Family claims are expected to begin in April/May 2025.
The Claims Administrator has until March 19, 2026 to review all the claims and issue payments to those that are valid. Please note that the Claims Administrator cannot provide claimants with specific updates about claims or payments.
The Claims Administrator will review each claim for completeness and to determine if any information appears to be missing. The Claims Administrator will contact you and request any missing information. Additional documents can be added to your claim by clicking on the “Add Document” button in the “Existing Claim” section of the claim portal, once logged in to your account.
If you have an address or contact information change after submitting your claim, you can update this in your account settings.
Administrator Role
The Claims Administrator manages the collection and review of claims submitted by the Claims Based Payment Group. The Claims Administrator also manages the settlement distribution to the Claims Based Payment Group, ensuring that payments are processed efficiently and accurately to qualifiable Class Members.
The Government of Canada bears the cost of administration, ensuring that the settlement funds directly benefit the Class Members without diminishing their compensation.
Payments
Please direct any questions about a payment from VAC directly to them. You can reach VAC directly at 1-866-522-2122 or through your My VAC Account.
As of December 2024, most settlement payments to the VAC payment group have been paid by VAC via direct deposit or through your usual method of payment.
The VAC payment group consists of Class Members with an existing payment relationship with VAC.
These group members did not have to make a claim to receive a settlement payment.
Supporting Document Requirements
Yes. Each file size limit is 10 MB. The maximum files size for your account is 250 MB storage across all your claims.
When that quota is reached, the following message is displayed: "You have reached the maximum allowable file storage limit per user."
The file formats you can upload to your account are the following: .jpg, .jpeg, .png, .pdf
Please call the call centre for more instructions at 1-833-839-0648.
On the claim form, each Upload Document field is restricted to one document. Any additional documents can be uploaded after submitting your claim by navigating to the “Existing Claims” page and using the “Add Document” button.
Questions?
A dedicated call center has been established to address general inquiries. The call center is open Monday to Friday, 8:00 AM to 8:00 PM (Eastern Time).
You may also visit our FAQ page.
For inquiries related to the Affected Benefits or your status as a Class Member, contact Class Counsel:
- Phone: 1-866-545-9920
- Email: info@vetspensionerror.ca