Minister of Veterans Affairs Seamus O'Regan holds a press conference to provide details about the GovernmentÕs commitment to provide a pension for life for Veterans, in Ottawa on Wednesday, December 19, 2017. iPolitics/Matthew Usherwood

The federal government has agreed to settle a class action lawsuit and pay veterans $100 million over reductions made to disabled veterans’ pensions that violated their constitutional rights. The Federal Court still must approve the deal.

Canadian Armed Forces members who received a disability pension from Veterans Affairs Canada (VAC) between April 2006 and May 2012, who were also entitled to receive the Earnings Loss Benefit (ELB) and the Canadian Forces Income Support Benefit (CFIS), will be awarded $70 million. The remaining $30 million will be awarded to veterans who received a disability pension during the same period and who were entitled to the War Veterans Allowance (WVA). The settlement also covers legal fees.

Veterans receiving compensation because of deductions to their ELB or CFIS will receive payments based on the degree of their disability as assessed under the Pension Act at the time of approval. Payments to veterans of this class are expected to range from $2,000 to $50,000. Veterans receiving compensation because of deductions to their WVA will receive a lump sum estimated to be between $2,000 and $2,500.

A spokesperson for VAC said about 13,000 veterans are part of the settlement.

“I believe the proposed settlement is fair and provides both sides with needed closure,” says a statement from Veterans Affairs Minister Seamus O’Regan.

[READ MORE: Government releases new ID card for veterans]

Toth vs. Her Majesty the Queen commenced in 2014. The class action alleged that former members of the military who had their pensions reduced because of disability benefits had their Section 15 Charter rights violated. Under S. 15 of the Canadian Charter of Rights and Freedoms, discrimination based on disability is prohibited. The class action seeks damages for all members who received a deduction. Raymond Michael Toth is the representative plaintiff.

The settlement will have to be approved in Federal Court. Approval hearing dates are set for Dec. 10 to 12, 2018.

After the settlement is approved by VAC, payments are expected to be delivered within six months.

“Now that this matter may soon be behind us, the Government of Canada will continue working to better serve Veterans and their families. I believe this decision shows that we intend to ensure that Veterans in Canada are better off now than they were before,” O’Regan said.

Follow @CharliePinkerto