Attorneys are currently reaching out to hundreds of thousands of individuals who are owed money as part of a class-action lawsuit against Veterans Affairs.
The lawsuit was initiated following a discovery by the Office of the Veterans Ombud that the government had been improperly calculating disability benefits and pensions for clients since 2003.
In January, the government agreed to a settlement worth up to $817 million.
The issue came to light when the ombud reviewed the department’s paperwork after changes were made to the disability award in 2016. It was revealed that Veterans Affairs had failed to consider the provincial basic tax credit when calculating provincial income tax. Despite correcting the error, the department did not notify or reimburse those who were underpaid.
Initially, it was estimated that around 270,000 veterans were underpaid approximately $165 million due to what was termed as an “accounting error.” The department committed to issuing corrective payments in 2018.
Michel Drapeau’s law firm was one of five firms that eventually filed the class-action lawsuit in 2019. The lawsuit also alleged that Veterans Affairs had made other miscalculations, such as failing to adjust payments for inflation.
Mr. Drapeau revealed that the miscalculations had actually spanned 21 years, from 2003 to 2023, indicating that the number of eligible veterans was higher than initially thought.
Approximately 117,000 military and RCMP veterans with a benefits or payment relationship with Veterans Affairs will receive direct payouts from the department before December. Sadly, another 215,000 eligible individuals have passed away, and surviving family members must file a claim to receive the payment.
Eligible claimants include surviving spouses, common-law spouses, children, parents, siblings, nieces or nephews, or the veteran’s estate.
Efforts are underway to inform eligible individuals through social media, advertising campaigns, contact with the Royal Canadian Legion, and a mailout to approximately 200,000 last known addresses.
The average claim amounts to about $2,500, with 40 individuals eligible for payments exceeding $35,000. Most payments are expected to be under $5,000.
KPMG, a management and consulting firm, has been enlisted to assist individuals in filing their claims online. The federal government will cover the cost of administering the claims, and KPMG will not receive funding from the settlement itself.
The deadline to file a claim is March 19, 2025.
