Court Approves Settlement in the Class Action regarding Cost of Living Allowance - Government continues to resolve issue in favour of Veterans in the Manuge Class Action Lawsuit

News Release

July 12, 2014 - 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 how cost of living allowance provisions in the Service Income Security Insurance Plan (SISIP) are to be applied.

This decision benefits approximately 14 000 former members of the Canadian Armed Forces who were in receipt of long-term disability benefits after January 1, 1971. Class action members are being directly informed of the settlement, and the details are posted on Veterans Affairs Canada, SISIP, and www.leavenovetbehind.ca websites. The notice details the settlement terms, how the cost of living calculations were determined and how class members will receive their additional refund.

Quick Facts

On April 4, 2013, the Federal Court of Canada approved the settlement in the class action lawsuit of Dennis Manuge v. Her Majesty the Queen regarding the offset of Veterans Affairs Canada disability benefits against Service Income Security Insurance (SISIP) Long Term Disability Plan benefits.
Approximately 8,000 veterans were involved in the initial class action.
The April 4, 2013 settlement did not include a resolution of how cost of living allowance provisions in the insurance policy would be applied. This issue was heard by the Federal Court on June 20, 2014 and the Court Order was issued on July 2, 2014.
The refunds associated with the cost of living allowance provisions will be completed by July 2, 2015.
The estimated value of the current settlement is $38.6 million, which is in addition to the value of the initial settlement approved on April 4, 2013.
SISIP Long Term Disability plan is a premium-based insurance program that provides financial benefits, including vocational rehabilitation, to medically releasing Canadian Armed Forces members who take voluntary release, but qualify as being totally disabled.

Quotes

“The well-being of both our serving and retired members is a priority for the Government of Canada. Acting quickly and fairly to resolve this matter was of the utmost importance. We are pleased with the Court's decision to approve the agreement, and the goodwill expressed in arriving at this agreement demonstrates clearly the commitment to look after our veterans.”
- Lieutenant-General Guy R. Thibault, Acting Chief of the Defence Staff

“We are pleased that this litigation has been brought to a successful resolution. We hope that this settlement will bring some comfort and assistance to this large class of Canada’s veterans.”
- Class Counsel Ward Branch and Peter Driscoll

Associated Links

Notice of Approval of Settlement in the Class Action (PDF 22 KB)

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Contacts

Media Relations
Department of National Defence
Phone: (613) 996-2353
Toll-Free: 1 866 377-0811

Ashley LeCroy
Communications Manager, Class Counsel
902-457-5667 / media@mcinnescooper.com

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Court Approves Settlement in the Class Action regarding Cost of Living Allowance - Government continues to resolve issue in favour of Veterans in the Manuge Class Action Lawsuit

News Release

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