OTTAWA –The Federal Court of Canada has approved the settlement reached between the Government of Canada and members of the class action of Dennis Manuge v. Her Majesty The Queen regarding the offset of Pension Act disability benefits from the Service Income Security Insurance Plan (SISIP) Long Term Disability benefits.
“Our Government is committed to the on-going care, health, and well-being of Canadian Armed Forces personnel and veterans,” said the Honourable Peter MacKay, Minister of National Defence. “The settlement reached is an example of this commitment, as it is in the best interest of the class and of the Canadian public.”
“We are pleased that this litigation has been brought to a successful resolution” said Class Counsel Ward Branch and Peter Driscoll. “We hope that this settlement will bring some comfort and assistance to this large class of Canada’s veterans.”
Class Members will be provided notice of the settlement in the manner set out below:
- The Notice will be published on Class Counsel’s website, and on the front page of the SISIP and Veterans Affairs Canada websites;
- The Notice will be emailed by Class Counsel to class members of whom they are aware; and
- Manulife Financial will distribute the Notice to the last known address on file for the Class Members.
The Notice will inform class members of the terms of the settlement and next steps. In summary, the agreement provides the following:
- Full retroactive payments dating back to 1976, including interest. The current estimated value of the settlement is approximately $887.8 million;
- an amount, included in the total of $887.8 million, to ease income tax implications on the retroactive payments;
- an independent review process for disputes as to past disability or the amount of refunds for such disability;
- clarity about how future benefits should be calculated; and
- access to a $10 million Scholarship Fund for Class Members, or their family, administered by the Association of Universities and Colleges of Canada.
The Canadian Forces Long Term Disability Income Replacement program is a disability group insurance plan administered by SISIP Financial Services that provides Canadian Armed Forces members with replacement income protection and vocational rehabilitation if they are released from the Canadian Armed Forces for medical reasons or take a voluntary release but qualify as being totally disabled.
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