Are You a Veteran: If you’re a veteran or a family member of one who received disability pension benefits from Veterans Affairs Canada (VAC) between January 1, 2003, and December 31, 2023, you may be eligible for compensation under the recently approved 2025 Pension Settlement. The case stems from miscalculations in annual benefit adjustments, and the approved class-action lawsuit could see thousands of veterans and their families receive payments averaging $2,000.
Below, we break down everything you need to know: from eligibility criteria to how the payments are issued.
You May Qualify for the 2025 Pension Settlement
| Details | Information |
|---|---|
| Settlement Name | Miscalculation of Disability Pensions Class Action |
| Time Period Covered | January 1, 2003 – December 31, 2023 |
| Settlement Amount | Up to CAD $817 million |
| Average Payment | CAD $2,000 (varies based on benefits received) |
| Deadline to Apply | March 19, 2025 (Now closed) |
| Payment Window | Fall 2024 to March 2026 |
| Official Website | veteranspensionsettlement.kpmg.ca |
Understanding the 2025 Pension Settlement
What Happened?
Over the years, some disability pensions and related benefits issued by VAC were miscalculated, particularly during the annual inflation adjustments. A class-action lawsuit was filed and ultimately led to the Canadian Federal Court approving a massive settlement to correct this error.
Who Is Eligible?
You may qualify for compensation under this settlement if:
- You or a deceased family member received any of the following benefits between Jan 1, 2003, and Dec 31, 2023:
- Pension Act pension for disability
- Pension Act pension for death
- Attendance allowance
- Allowance for wear and tear of clothing or specially made apparel
- Exceptional incapacity allowance
- Clothing allowance (Veterans Well-being Act)
- War pensions/allowances under Civilian War-related Benefits Act
- Flying Accidents Compensation
- RCMP Disability Benefits under the Pension Act
Both living veterans and surviving family members (spouses, dependents, estates) are eligible.
How to Claim Your Share (If You Qualified Before Deadline)
1. Application Deadline Was March 19, 2025
The claims window is now closed. However, if you applied before the deadline, your application is under review. The Claims Administrator has until March 19, 2026, to issue all payments.
2. Types of Payments
There are two main categories:
Automatic Payments
If you currently receive a monthly disability pension directly from VAC, you are in the “VAC Payment Group.”
- No application was required.
- Payments were deposited automatically through the usual method starting in Fall 2024.
Claims-Based Payments
If you are a former recipient or estate not currently receiving VAC payments, you are part of the “Claims-Based Payment Group.”
- A formal application was required by March 19, 2025.
- Payments are being issued in batches between Fall 2024 and March 2026.
How Much Will You Get?
Each eligible class member will receive about 2% of the total affected benefits they were paid between 2003 and 2023.
Example:
If you received CAD $100,000 in affected benefits, your estimated payment would be around $2,000.
- 50% of class members are expected to receive up to $1,000.
- The maximum individual payouts could be higher depending on the benefit history.
Need Help or Have Questions?
For personalized help:
- Visit the official settlement website
- Call the helpline: 1-833-839-0648
- Email class counsel: [email protected]
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FAQs on Are You a Veteran
Q1. Can I still apply for the 2025 pension settlement?
No. The deadline to submit a claim was March 19, 2025. Late submissions are not accepted.
Q2. What if the veteran has passed away?
Spouses, dependents, and estates of deceased veterans may still qualify if they applied before the deadline.
Q3. How will I receive the payment?
If eligible, you will receive payment via the same method used for past VAC benefits (direct deposit or mailed cheque).
Q4. Is this payment taxable?
Settlement payments for this class action are typically not taxable, but you should consult a tax advisor for confirmation.
Q5. What should I do if I missed the deadline?
Unfortunately, claims are no longer accepted. However, keep an eye on the official website for any new developments.
