Federal court approves $6 million class action settlement over pension delays for Canadian armed forces reservists
August 18, 2025
A Federal Court judge has approved a class action settlement requiring the Canadian government to pay $6 million to reserve force members of the Canadian Armed Forces who experienced significant delays in receiving their pension benefits.
The Reserve Force Plan was established in 2007 to provide pension benefits to reserve force members which are payable upon release from the Canadian Armed Forces. It was the first pension plan established by Parliament in 40 years. Prior to its implementation, the federal government was warned that its existing systems could not effectively manage the new pension plan. Upon implementation, reserve force members faced substantial delays in receiving their pension entitlements and a backlog in pension administration processing. The backlog was cleared by 2017, after pension administration was transferred to Public Services and Procurement Canada.
Mr. Jost commenced the class action proceeding in 2017, at which time he alleged that the federal government acted negligently and breached implied terms of contractual duties in the administration of pension entitlements which caused actionable damages. First certified in 2019, the class action was approaching a trial date in late 2024 when the parties reached a partial agreement, before executing a final settlement in March 2025.
The terms of the approved settlement will see $6 million shared between class members, who will receive compensation on a sliding scale (depending on how long they waited to receive their first pension payment) ranging from $400 for anyone who waited more than 90 days, up to a maximum of $1,200 for those who waited longer than two years. Class members who were entitled to a lump sum transfer value payment are also entitled to $600 if they were delayed longer than 180 days.
The judge found the settlement fair, reasonable, and in the best interests of the class, citing the case’s novel issues, the significant uncertainty and risk regarding success at a common issues trial, and the extra time it would take to receive compensation after a full hearing.
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