Christina Spicer  |  January 22, 2021

Category: Legal News

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Veteran Affairs in talks to fix $165 million mistake affecting 250,000 veterans

The federal government is reportedly in talks to rectify a $165 million mistake at Veterans Affairs, affecting the benefits of over 250,000 former service members – many of them elderly.

Veterans Affairs was smacked with five separate lawsuits in 2019, all claiming that the agency miscalculated disability awards and pensions. The lawsuits were consolidated and Class Members certified by a federal judge on Dec. 23, 2020.

Veterans Affairs Makes Multi-Million Dollar Error, Fails to Notify

The bureaucratic error came to light in 2018, after a former veteran’s ombudsman blew the whistle. The agency had allegedly miscalculated benefits starting in 2002. While the error was identified and fixed, Veterans Affairs failed to contact those affected by the resulting reduction in benefits and failed to reimburse them.

In 2019, a CBC News investigation discovered federal documents that explained how the error occurred – and how the bureaucracy hid it from veterans. This revelation led to the class action lawsuits and, now, exploratory talks with the federal government to reimburse short-changed veterans.

Veterans Affairs Minister Says Compensation Process Well Underway

A spokesperson for the department told CBC News that, while not complete, the process of compensating veterans affected by the error is well underway. Over 100,000 veterans and their survivors have received more than $77.3 million, according to CBC News.

Most of those who have received compensation are surviving veterans, the spokesperson told CBC News.

In addition, the spokesperson touted an advertising campaign being developed by Veterans Affairs to help notify those who may be able to take part in this compensation program.

Veterans File Class Action Lawsuits For Correct Pensions And Benefits

Former members of the Armed Forces have filed a number of legal actions over irregularities in their pensions and other retirement benefits.

In one class action lawsuit that was certified by a federal court, a veteran who attempted to take a lump sum pension payout claimed that his benefits were reduced on two occasions without any explanation. Another veteran, who served in special operations, alleged that he was shorted disability benefits.

In addition to compensation, plaintiffs in the Veterans Affairs class action lawsuit believe there should be some accountability and further investigation into how the error was hidden from the public for nearly a decade.

Did you serve in the Armed Forces? Are you concerned about how your pension or retirement benefits were calculated by Veterans Affairs? Tell us about your experience in the comment section below!

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12 thoughts onFederal Government to Settle Lawsuits Filed Over Veterans Affairs’ $165M Mistake

  1. Miguel Perez says:

    Why are Veterans denied 100 % if they where affected by Chernobyl Radioactivity radiation while begin station in Europe in 1986 and after , which many have die and family never got any benefit from the VA . 33,000,000 Veterans and 11,000,000 has die according to the Cold War Era . Not even considering for this pension the Congress has approved and VA denied.

  2. TLCGranddaughter says:

    Grandpa served ww2 TWICE… he died in 2014, they denied him a pension until age 87, he was injured in the war, I would appreciate someone contacting me
    shabpeitsch@gmail.com
    they never even paid for his tombstone, he held onto the certificate until he died, they promised to bury him and a tombstone, they did neither of those. So much more, he lived in poverty served well and was treated badly

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