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Settlement for veterans clawback lawsuit worth up to $887.8-million, lawyers say

Dennis Manuge, the lead plaintiff in a class-action lawsuit over military pension clawbacks, talks with reporters at a law office in Halifax on Jan. 9, 2013.

Andrew Vaughan/THE CANADIAN PRESS

Lawyers for veterans who launched a class-action lawsuit over military pension clawbacks says they've reached a tentative settlement with Ottawa worth up to $887.8-million.

The law firm that represents Dennis Manuge, the lead plaintiff in the case, says the proposed settlement includes $424.3-million in retroactive payments to veterans that dates back to 1976.

The compensation also includes $82.6-million in interest.

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The class-action lawsuit was filed in March 2007 on behalf of Mr. Manuge and other disabled veterans whose long-term disability benefits were reduced by the amount of the monthly Veterans Affairs disability pensions they received.

Veterans successfully argued in Federal Court that it was unfair of the federal government to treat pain and suffering awards as income.

The settlement will be circulated to class-action members for approval and a two-day court hearing on the settlement is scheduled to begin in Halifax on Feb. 14.

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