Attorneys Seeking Families Entitled to Money from Veterans Affairs

Lawyers are attempting to contact a large number of individuals who are owed money as part of a class-action lawsuit against Veterans Affairs.

This lawsuit was initiated after the Office of the Veterans Ombud discovered that the government had been incorrectly calculating disability benefits and pensions for its 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 records following changes 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. Although the error was corrected, the department did not inform or reimburse those who had been underpaid.

Back then, the ombud estimated that around 270,000 veterans had been shortchanged approximately $165 million due to what was described as an “accounting error.” The department promised to make corrective payments in 2018.

Michel Drapeau’s law firm was one of the five firms that ultimately filed the class-action lawsuit in 2019.

The lawsuit also alleged that Veterans Affairs had made other errors, such as failing to adjust payments for inflation.

According to Drapeau, the miscalculations occurred over a span of 21 years, from 2003 to 2023, indicating that the number of eligible veterans was higher than initially thought.

Around 117,000 military and RCMP veterans with a benefits or payment arrangement with Veterans Affairs will receive direct payments from the department before December.

Another 215,000 eligible individuals have passed away, and Drapeau emphasized the importance of their surviving family members filing a claim to receive the payment.

Eligible claimants could include surviving spouses, common-law partners, children, parents, siblings, nieces or nephews, or the veteran’s estate.

Drapeau mentioned that they are utilizing various methods to reach out to potential claimants, including social media, advertisements, the Royal Canadian Legion, and mailing out notices to approximately 200,000 addresses.

The average claim is valued at around $2,500. While 40 individuals are eligible for payments exceeding $35,000, most payments are under $5,000 as per the Federal Court settlement.

KPMG, a management and consulting firm, has been engaged to assist individuals in filing their claims online.

The federal government will cover the administrative costs associated with these claims, and KPMG will not receive funding from the settlement itself.

The deadline for submitting a claim is March 19, 2025.