$5,000 Holdback on Disease Level 2 Fixed Payment
Section 4.01(1)(b) of the Transfused
Plan (Schedule A) and Hemophiliac
Plan (Schedule B) provides that the fixed payment for
disease level 2 ($20,000 without indexation) shall be subject
to a $5,000 (without indexation) holdback.
This $5,000 holdback was created as a temporary safeguard
to ensure a minimum level of benefits to all claimants.
In June 2002, a motion for directions was heard by the three Courts having jurisdiction
over the 1986-1990 Hepatitis C Settlement Agreement with respect to the payment
of the holdback as required under section 4.01(1)(b) of the Transfused
Plan (Schedule A) and Hemophiliac
Plan (Schedule B). On the recommendation of the Joint
Committee coupled with the advice of actuaries and medical experts, the
Courts decided that the $5,000 holdback is to be paid to claimants
so entitled.
Ontario
Court Reasons for Decision – July 11, 2002
British
Columbia Court Reasons for Judgement – July 12, 2002
Quebec Court Reasons for Judgement
– July 12, 2002 (in French)
See FAQ
Interest Will be Paid
Section 7.03(2)(a) of the Transfused
Plan (Schedule A) and Hemophiliac
Plan (Schedule B) provides that upon deleting the $5,000
holdback, you will be entitled to receive the holdback plus
interest calculated at the Prime
Rate commencing on the date of the payment of $15,000.
Section 7.04 of the Transfused
Plan (Schedule A) and Hemophiliac
Plan (Schedule B) provides that interest payable under
the plans must be calculated on the basis of simple interest,
not compound interest.
Section 7.04 of the Transfused
Plan (Schedule A) and Hemophiliac
Plan (Schedule B) further provides that there will be
no interest paid on the Pension Index adjustment component
of any amount.
Each person entitled to receive the $5,000 holdback sum will
be paid the full $5,000 plus interest at the Prime Rate commencing
on the date of the original payment of the $15,000 paid under
section 4.01(1)(b). In addition, the claimant will be paid
indexation for the year 2002 on the $5,000, specifically $364.39.
Therefore, the total amount to be paid is:
Holdback Amount + Accrued Interest + Indexation
Amount
$5,000 + Variable + $364.39
Examples of payment calculation
Month that Fixed Payment for Disease
Level 2 was Paid
|
BASE AMOUNT Payable
|
INTEREST
(Accrual Starts as of Month Fixed Payment Was
Paid for Disease Level 2)
|
2002 INDEXATION Amount
|
TOTAL PAYABLE
|
June 2000
|
$5,000
|
$666.61
|
$364.39
|
$6,031.00
|
October 2001
|
$5,000
|
$203.60
|
$364.39
|
$5,567.99
|
July 2002
|
$5,000
|
$50.00
|
$364.39
|
$5,414.39
|
Note 1: The interest rate used in the holdback calculation
is the Bank of Montreal prime rate reported to the Bank of
Canada for interest charged to customers in Canada for Canadian
Dollar loans.
Note 2: As per section 7.04 of the Settlement Agreement
all interest payable on the holdback amount is calculated
on the basis of simple interest and is not compounded. Finally,
please note that the annual interest rate used in all calculations
is based on 365 days per year.
Direct Deposit or Cheque
You will be paid by cheque
or by direct deposit and in the same manner as you were
last paid. In other words, if you previously opted to be paid
by direct deposit, the holdback amount will be once again
electronically deposited into your account.
If you were previously paid by cheque, the holdback amount
will be paid to you by cheque and mailed to your last address
on file.
The HCV Infected Person Has Died Since Level 2 Compensation
Was Paid
If the claimant has died since receiving his/her
fixed payment for disease level 2, please report this fact
to the Administrator as soon as possible. In such
cases, the Administrator will pay the holdback funds to the
Estate of the deceased HCV Infected Person.
If the HCV Infected Person died and we have yet to receive
documentation in this regard, the Administrator will release
the holdback funds only upon receipt, review and approval
of the following:
- A copy of the Death Certificate for the HCV Infected Person.
- A complete TRAN 1 or HEMO 1 Form, which lists you as the HCV
Personal Representative for the Claim;
- As well as one of the following:
- an original certificate of appointment of Estate Trustee; or
- a grant of probate, or letters of administration; or
- a notarial will (or copy thereof certified to be a true copy by a lawyer
or notary); or
- such other proof of the right of the claimant to act for the estate
of the deceased as may be required by the Administrator.
- updated address/ contact information
Please note that payments to any Estate are made by cheque
See FAQ
|