NOTICE OF SETTLEMENT APPROVAL (PROPOSED SETTLEMENT OF CLASS ACTION REGARDING DEDUCTION OF PENSION ACT PAYMENTS FROM VETERAN SUPPORT PROGRAMS) Toth v. Her Majesty the Queen - Court File No.: T-1068-14

PROPOSED SETTLEMENT OF CLASS ACTION

If you are:

(1) a former member of the Canadian Forces (“CF”) and were entitled to receive Earnings Loss Benefit (“ELB”) or Canadian Forces Income Support (“CFIS”) Benefit between April 1, 2006 and May 29, 2012; or

(2) a war veteran entitled to receive a War Veterans Allowance (“WVA”) under the War Veterans Allowance Act between April 17, 1985 and May 29, 2012; and the amount of your benefits (or eligibility to receive benefits) was reduced or eliminated based on disability entitlements payable to you by Veterans Affairs Canada (“VAC”) under the Pension Act, you are a class member and received a notice in 2016 (the “2016 Notice”) regarding certification of a class action by the Federal Court of Canada.

If you are the spouse, dependant, survivor, or orphan of an individual entitled to receive ELB, CFIS, or WVA, you may also have received a copy of the 2016 Notice.

This Notice is to inform you of a proposed settlement of the class action. The proposed settlement must be approved by the Federal Court of Canada. A hearing for that purpose has been scheduled in Ottawa from December 10 through December 12, 2018.

WHAT IS THE CLASS ACTION ABOUT?

The class action was commenced in April 2014 and involves former CF members who, between April 2006 and May 2012, were subject to deduction of their VAC disability pension under the Pension Act from ELB and/or CFIS entitlements. Before May 2012, some WVA recipients were also subject to deduction of Pension Act disability benefits from WVA entitlements.

The class action alleges that deduction of disability benefits from ELB,

CFIS, and WVA violated s. 15 of the Canadian Charter of Rights and

Freedoms, which prohibits discrimination based on disability. The class action seeks damages and compensation for all class members who were subject to the deduction.

WHAT IS THE PROPOSED SETTLEMENT?

Under the proposed settlement, Canada will pay $100 million to resolve the class action. The settlement will cover all claims for damages, compensation, legal fees, costs, and disbursements. $70 million of the total amount will be allocated to CF members who received a VAC disability pension under the Pension Act between April 2006 and May 2012 and who were also entitled to ELB and CFIS. The remaining $30 million will be allocated to war veterans who received a VAC disability pension under the Pension Act between April 2006 and May 2012 who were entitled to WVA.

WHAT WILL I BE PAID UNDER THE PROPOSED SETTLEMENT?

Former CF Members who were entitled to ELB or CFIS and received a VAC disability pension under the Pension Act between 2006 and 2012 will receive a payment under the settlement based on the degree of their disability as determined by their disability assessment under the Pension Act as of September 7, 2018. The payments will be based on a range of disability assessments under the Pension Act in 20 separate increments (or bands) from 5% to 100%. To illustrate using current estimates, payments based on Pension Act disability assessments should range from approximately $2,000 - $2,500 for those with a 5% disability, $20,000$25,000 for those with a 50% disability, to $40,000-$50,000 for those with a 100% disability. Former CF Members with disability assessments in between these illustrations (from 10% to 45% or from 55% to 95%) will receive proportionately greater or lesser amounts depending on the degree of their Pension Act disability assessment.

Please note that the amounts in these ranges are approximate and could change after more detailed examination of VAC records.

War veterans who were entitled to WVA and received a VAC disability pension under the Pension Act between 2006 and 2012 will be paid a lump sum payment currently estimated to be in the approximate range of $2,000 to $2,500.

If you received the 2016 Notice and you are a spouse, dependant, survivor, or orphan of a former CF member or war veteran, you may also be entitled to a payment. The estates of class members who have died since the First Notice was mailed out in August 2016 may also be entitled to the lump sum payable to the deceased class member.

WHAT DO I NEED TO DO TO PARTICIPATE?

There is no requirement to appear at the settlement approval hearing scheduled from December 10 through 12, 2018. If the settlement is approved, you will be mailed a cheque by VAC, in the approximate amount indicated in this notice.

If you have comments on the proposed settlement, you can write to class counsel at the addresses listed below before November 30, 2018 and your comments will be brought to the attention of the Federal Court judge being asked to approve the settlement.

If you wish to appear for the settlement hearing, you can either attend in person in Ottawa at the Federal Court of Canada located at 90 Sparks Street, Ottawa, Ontario or at Federal Court locations in other Canadian cities that will be linked in to the hearing in Ottawa through live video teleconference. If you wish to personally attend, we would ask that you contact Class Counsel, at the address below, by no later than Friday, 23 November 2018, so that arrangements can be made to ensure that appropriate space and video-teleconference capacity are available in the Federal Court location closest to you.

WHAT HAPPENS IF I OPTED OUT?

Class members who previously opted out of the class action after receiving the 2016 Notice will be provided the opportunity to opt back into the proceeding for purposes of the proposed settlement. All class members who mailed in opt-out coupons will be mailed a new form permitting them to opt back into the class action (“Opt-In Form) so that they can, if eligible, receive a payment under the settlement. If an Opt-In Form is not received by class counsel on or before November 30, 2018, a class member who previously opted out will be bound by their previous opt-out coupon and will be paid nothing under the proposed settlement.

APPROVAL OF CLASS COUNSEL’S FEES

At the December 2018 hearing, Class Counsel, Gowling WLG (Canada) and Michel Drapeau Law Office, will be asking the Federal Court to approve their fees and disbursements based on the retainer agreement between Mr. Toth and Class Counsel. As indicated in the 2016 Notice, a scaled legal fee of up to 30% is payable depending on the total amount of the recovery. Based on the retainer agreement and the proposed settlement, Class Counsel will seek approval of a legal fee of 17% of the total recovery. Class Counsel are proposing to pay, from counsel fees, an honorarium of $50,000 to the representative plaintiff, Raymond Toth, in recognition of the extraordinary personal time and effort he devoted to the class action.

WHO ARE CLASS COUNSEL?

Contact Information for Class Counsel

Gowling WLG (Canada) LLP can be reached at:

100 King St. W., Suite 1600, Toronto, ON, M5X 1G5 Attn: Malcolm Ruby or Adam Bazak

Tel: 416-369-6183

Email: Veterans@gowlingwlg.com

Michel Drapeau Law Office can be reached at:

192 Somerset West, Ottawa ON K2P 0J4

Attn.: Michel Drapeau or Josh Juneau

Tel: 613-236-2657, Extension 205

Email: Joshua.Juneau@mdlo.ca; Michel.Drapeau@mdlo.ca WHERE CAN I FIND MORE INFORMATION? For more information you can visit Class Counsel’s Website at following links: http://ca.gowlingwlg.com/VeteransClassAction/; or http://mdlo.ca/uncategorized/advisory-veterans-class-action-documentation/