The federal government has agreed in principle to pay $100 million to settle a four-year lawsuit with veterans who say they were discriminated against when the government deducted their disability pensions from the income-replacement benefits they received from Veterans Affairs Canada.

The veterans initially filed the lawsuit in 2014, saying the government violated the section of the Canadian Charter of Rights and Freedoms that prevents discrimination on the basis of a disability when it deducted their pensions from the amounts they received through the earnings loss benefit, the Canadian Forces income-support benefit and the war veterans allowance, according to the Globe and Mail.

Read: Reimbursing benefits key unresolved issue for Veterans Affairs, says report card

“The government of Canada and the plaintiff Ray Toth have reached an agreement in principle to settle the class proceeding in Toth v. Her Majesty the Queen, bringing the parties closer to the end of a legal action that began over four years ago,” said Minister of Veterans Affairs and Associate Minister of National Defence Seamus O’Regan, in a statement.

“I believe the proposed settlement is fair and provides both sides with needed closure.”

The settlement is subject to approval by the federal court. An approval hearing is set for Dec. 10-12, 2018 in Ottawa.

Read: Liberals’ pension plan for disabled veterans won’t take effect until 2019

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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