Federal government won't appeal veterans' court victory on pension clawbacks

OTTAWA - The federal government will not a appeal a Federal Court of Canada ruling that rejected clawbacks from the pensions of disabled veterans.

The Canadian Press has learned a formal announcement will come this afternoon from Veterans Affairs Minister Steven Blaney and Defence Minister Peter MacKay.

The ruling earlier this month was a victory for veterans five years in the making.

The class action was filed in March 2007 on behalf of Dennis Manuge and 4,500 other disabled veterans whose long-term disability benefits are reduced by the amount of the monthly Veterans Affairs disability pension they receive.

The court said the clawback was unfair under the Pension Act and violated the reasonable expectations of disabled vets.

While the government won't appeal the ruling, sources say details of the settlement, including how far back pension repayments might extend, are still being worked out.