HALIFAX - A judge has reserved decision in a far-reaching case into whether Ottawa has the right to claw back disabled veterans' benefits.

More than a dozen veterans were in federal court in Halifax today to hear final arguments in one part of their ongoing class-action lawsuit.

The veterans are suing the federal government because they say their long-term disability benefits are being reduced by the amount of their disability pensions.

Their lawyers say the disability pension should not be considered income and not clawed back from their monthly payments.

But the lawyer for the federal government says much of it will hinge on the definition of income, which she insists includes the benefits.

Some veterans say they are losing $1,300 a month in benefit payments because of the clawback and are only getting about 30 per cent of their salary before they were released from the military.