Discriminatory Disability Pension Penalties Taken to Court

Disabled Quebeckers receiving a disability pension may be the subject of discriminatory penalties, according to a newly filed class action lawsuit. Quebec residents who contribute to the Quebec Pension Plan and are disabled can receive a disability pension from Retraite Québec. At the age of 65, this disability pension is converted into a retirement pension.

However, beneficiaries who receive a disability pension between the ages of 60 and 65, as in the case of Richard McLean the lead plaintiff in this new proposed class action lawsuit, are subject to a penalty of up to 36% of their benefits.

Disability Pension Penalties Spark Outcries

The proposed pension penalty class action lawsuit alleges that the Quebec government unjustly imposed penalties on the retirement pensions of disabled residents, as is typically done for those who have decided on their own initiative to take an early retirement before the age of 65. The pension penalty class action lawsuit calls this practice “completely abusive” and “discriminatory.”

If you have received pensions or disability benefits between the ages of 60 and 65, and have had a penalty imposed on your retirement pensions paid from the age of 65, you may be a potential Class Member in this class action lawsuit.

These pension deductions, argues the plaintiff’s lawyers, are the same as those imposed on non-disabled residents who took an early retirement. Although these penalties have been levied for some time already, they were deemed discriminatory by the Commission des droits de la personne et des droits de la jeunesse in 2017, when applied to disability pensioners.

Why are the penalties discriminatory? In the case of non-disabled adults, there was a choice to retire between the ages of 60 and 65. In contrast, there was no choice involved for people receiving a disability pension, according to Stéphanie Fournier, a lawyer with the Commission.

Paralyzed Plaintiff Loses Thousands in Penalties

Class representative Richard McLean was an active man who travelled throughout the U.S. as a truck driver. His life took a brutal turn at the age of 50 when he suffered a stroke.

Partially paralyzed, unable to walk, talk, and for a while feed himself, the road to rehabilitation was long for McLean. He was declared disabled at the age of 51.

McLean’s physical condition forced him and his wife to sell their home and relocate to a more suitable apartment. For two years, McLean had to live in a CHSLD due to the care he required. During these two years the couple reportedly exhausted their savings and their RRSPs.

As if things couldn’t get any worse for the Class representative, at age 65 McLean noticed a significant drop in his retirement pension, his disability pension replacement. He estimates the loss at about $4,000 per year.

According to Walter Zelaya, General Manager of Moelle épinière et motricité Québec (MÉMO-Qc) told Radio-Canada, he sees cases like this regularly. In fact, he has been fighting for years to have the penalty withdrawn.

Disability Pension Penalty Challenged

Radio-Canada reports that according to Retraite Québec, the financial losses generated by the penalty are generally compensated by the Old Age Security program from the federal government.

Zelaya doesn’t agree. He analyzed the situation of several affected disability pension beneficiaries and found that the penalty was not fully compensated by the federal program.

The Quebec Human Rights Commission’s Me Fournier goes a step further: “Is it a good justification for the State to say: ‘We can afford to disadvantage people on the basis of their disability in a legislative measure and say that there is another level [of government] that can perhaps balance or restore everything?’”

A new challenge to this penalty was filed before the Tribunal administratif du Québec by a group of beneficiaries who also experienced penalties to their retirement plans.

The pension penalty class action lawsuit is seeking the reimbursement of any prejudice caused by the penalty as well as $1,000 in compensatory damages and another $1,000 in punitive damages.

This has not been the only recent case of discriminatory pensions. The Supreme Court Canada ruled in October that women and parents were discriminated against in the Royal Canadian Mounted Police pension plan.

Are you disabled? Has your disability pension been subjected to penalties? Share your story in the comments below!

The lead plaintiff and potential Class Members are represented by De Louya Markakis Avocats.

The Pension Penalty Class Action Lawsuit is Richard McLean v. Procureur Général du Québec et Retraite Québec, Case No. 500-06-001102-207, before the Superior Court of Québec, District of Montreal, Canada.

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