HALIFAX -- Lawyers for a group of disabled RCMP officers say they have reached a settlement with the federal government over disability payments that were clawed back.

Lawyer Peter Driscoll of Halifax said Friday the proposed class-action settlement could total $31 million, plus interest, if it's approved by the Federal Court.

The case involves about 1,000 disabled RCMP officers who had seen their long-term disability payments reduced by the amount they received every month in disability pension payments from the Veterans Affairs Department.

The proposed agreement also means the reduction would end for all RCMP veterans now receiving benefits and Mounties who are medically released in the future.

Driscoll said his firm is pleased with the result of the settlement.

"We're glad we were able to come to a resolution that will end the offset once and for all, and see disabled members who were subject to the offset benefit from the terms of the settlement," he said in a statement.

The case was launched in 2008 by Gerard Buote, but was taken over by David White after Buote died from cancer the following year.

The Federal Court is scheduled to consider approval of the settlement in Halifax on June 20 and if approved, class members could receive their refund within six months of approval.

The case is almost identical to one that a judge deemed harsh and unfair in a class-action lawsuit by military veterans.

About 8,000 wounded military veterans were awarded a $887.8-million settlement after former army sergeant Dennis Manuge launched a class-action suit against Ottawa in 2007.