This Canada-wide Class Action pertains to the proper calculation of disability benefits paid to federal government employees. The action was brought by Giulia Belec on behalf of all proposed class members seeking $10 million by Sun Life Assurance Company of Canada (“Sun Life”).
The Class Members include all persons employed or formerly employed by the Federal Government who received long term disability (“LTD”) benefits from Sun Life under Group Policy No. 12500-G, at any time dating back to January 20, 2005 through to the present date and whose benefits were increased by cost of living indexation and reduced by “other income” (such as CPP or PSSA benefits).
The claim alleges that Sun Life incorrectly calculated the cost of living increases to which all Class Members were entitled on an annual basis. It is alleged that Sun Life calculated the cost of living increase based on the Class Members’ net LTD benefit after the application of deduction of other income rather than against the Class Members’ gross LTD benefits prior to the application of deductions of other income.
The lawsuit also alleges, in the alternative, that Sun Life applied the cost of living increase to the gross monthly benefit and then improperly deducted a cost of living increase to collateral sources of income irrespective of (a) whether the collateral sources of income were actually indexed for cost of living or (b) whether the Policy permitted deduction of any cost of living increases on the collateral source of income.
This action was certified as a class action on June 13, 2022. Sun Life is seeking to appeal the certification determination.
Sun Life also brought an unsuccessful summary judgment motion to dismiss the action. Sun Life is seeking to appeal this determination.
Further information regarding this action can be found in the attached documents:
Pleadings:
Certification Motion:
Summary Judgment Motion
Opt-Out Form
