Home Legal News Proposed settlement in class action regarding the calculation of Canadian Armed Forces LTD benefits for disabled veterans

Proposed settlement in class action regarding the calculation of Canadian Armed Forces LTD benefits for disabled veterans

by HR Law Canada
By McInnes Cooper

A proposed agreement has been reached to resolve the miscalculation of Long Term Disability payments for members of the Class of disabled Canadian Armed Forces (CAF) veterans, announced today by Simon Logan, the Representative Plaintiff, and Daniel Wallace, Class Counsel.

On behalf of over 8,500 CAF veterans, Mr. Logan sued the Government of Canada alleging that the calculation of their long term disability benefits should have included their monthly allowances at the time of their release from the CAF for Regular Force members, and at time of injury or illness for Reserve Force members on class “C” service. The Federal Court ruled in Mr. Logan’s favour.

The estimated retroactive and future value with respect to long term disability benefits of the proposed agreement is up to $279 million. The proposed agreement provides that Class Members will receive a payment for the value of their long term disability miscalculation for the period of July 17, 2012 to December 31, 2021, minus applicable taxes. This payment will not retroactively impact Veterans Affairs Canada’s Earnings Loss Benefit or Income Replacement Benefit for that period. Class Members with an ongoing long term disability claim on January 1, 2022 will continue to receive an adjusted long term disability benefit as per the Court’s decision until the end of their claim

For the proposed agreement to become effective, it must be approved by the Federal Court. The Court settlement approval hearing is scheduled to be heard in Halifax on April 13, 2023. If the settlement is approved, the parties will provide further notice to the Class Members.

Simon Logan, the Representative Plaintiff, speaks on the case settlement.

“I am pleased that we have reached a fair agreement to implement the Court’s ruling. CAF veterans have sacrificed so much for Canada and deserve to receive the compensation that they were entitled to.”

For additional information and to obtain a copy of the proposed agreement, please visit https://www.mcinnescooper.com/services/sisip-ltd-allowances-class-action/.

About McInnes Cooper

McInnes Cooper is among the 25 largest law firms in Canada and an exclusive member firm in Atlantic Canada for Lex Mundi – the world’s leading network of independent law firms. Providing strategic counsel to industry-leading clients from Canada and abroad, the firm continues to thrive through its relentless focus on client success, talent engagement and innovation. With an integrated team of over 200 lawyers and over 200 professional resources across seven locations in key economic centers across Atlantic Canada, McInnes Cooper is positioned to offer clients a full range of legal services.

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