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$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