Veterans’ Disability Benefits Class Action Gets Green Light From Federal Court

A federal court ruled in favor of a Canadian Armed Forces veteran who says his monthly income benefit was improperly calculated, causing him to be underpaid for his long-term disability benefits.

Plaintiff Simon Logan of Ontario served as a member of the Canadian Armed Forces, starting in February 1998. According to the veterans’ disability benefits class action lawsuit, he suffers from medical conditions as a result of his service which caused him to receive a medical release in February 2016. At the time of his medical release, Simon had achieved the rank of Warrant Officer.

Simon was required to pay into SISIP Policy 901102, a group insurance plan for members of the Regular Force and the Reserve Force of the Canadian Armed Forces, the injured veterans class action lawsuit says. This policy is completely funded by the premiums paid by its members and plan sponsor. All Regular Force and Reserve Force Members are required to participate in SISIP Policy 901102.

Part III(B) of SISIP Policy 901102 reportedly provides long term disability insurance for Canadian Armed Forces members who were released after Nov. 30, 1999. The monthly benefit under Part III(B) of the policy provides a monthly income benefit in the amount of 75 percent of the member’s monthly pay at the time of the release from the Canadian Forces or, for a Class “C” member, 75 percent of the monthly pay that was in effect at the time of injury or illness.

Simon argues that the defendant improperly calculated the monthly income benefit.

When he was released from the Canadian Armed Forces, his monthly rate of pay was reportedly $10,665. This amount included $6,801 per month as a warrant officer, $3,730 per month allowance, $65.50 per month post living differential, and $68.50 per month civilian dress allowance.

According to the veterans’ disability benefits class action lawsuit, all of the amounts except the civilian dress allowance were subject to income tax.

Instead of receiving 75 percent of his $10,665 monthly rate of pay upon his release from the Canadian Armed Forces, Simon reportedly received 75 percent of his $6,801 monthly warrant officer salary.

Simon’s lawyers told the court that the allowances should have been included in the payment calculation because they reflect the increased hazards he faced while serving. The government argued that Simon’s status as a special forces soldier ended once he left the Canadian Armed Forces.

Simon says he was undercompensated by $2,898 per month because the defendant failed to properly calculate the monthly income benefit according to the terms set forth in Part III(B) of SISIP Policy 901102.

“In particular, the Defendant failed to include monthly allowances, benefits and/or other payments as part of their ‘monthly pay in effect on the date of release from the Canadian Forces’ for the purposes of calculating the monthly income benefits of Regular Force Members,” the injured veterans class action lawsuit says.

“Further, the Defendant failed to include monthly allowances, benefits and/or other payments as part of their ‘in effect on the date of injury release from the Canadian Forces’ for the purposes of calculating the monthly income benefits of Class ‘C’ members.”

On Tuesday, Federal Court Justice Richard Southcott agreed with Simon that monthly allowances should be counted in the calculation for long-term disability benefits.

Simon filed the class action lawsuit on July 17, 2018 seeking arrears and other losses from the defendant’s failure to pay the monthly income benefit required by Part III(B) of SISIP Policy 901102. He also seeks damages for mental distress, general damages, special damages, pre- and post-judgment interest, out-of-pocket expenses and disbursement, costs, and other relief the court deems proper.

The veterans’ disability benefits class action lawsuit names Her Majesty the Queen as defendant, as the representative of the Government of Canada, the Minister of National Defence, Chief of Defence Staff and the Treasury Board.

Class Members of the injured veterans class action lawsuit include : “All former members of the Canadian Armed Forces who receive, or have received, long term disability benefits and/or dismemberment benefits under Part III(B) of SISIP Policy 901102, and had an allowance, benefit and/or other payment from the Canadian Armed Forces in effect on the date of their release from the Canadian Armed Forces or, in the case of a Class ‘C’ member, when the injury occurred or the illness was contracted.”

Approximately 6,800 veterans may qualify as Class Members of the injured veterans’ benefits class action lawsuit.

What do you think about this ruling? How much should Class Members receive for the disability benefit miscalculation? Tell us your opinion in the comment section below!

Simon is represented by Daniel Wallace of McInnes Cooper.

The Injured Veterans’ Benefits Class Action Lawsuit is Simon Logan v. Her Majesty the Queen, Case No. T-1358-18, in Federal Court, Canada.

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