Sun Life Assurance Facing $10M Canada-Wide Class Action

A $10 million class action lawsuit has been filed against Sun Life Assurance Company of Canada over allegations Sun Life incorrectly calculated the cost of living increase that certain federal government employees were entitled to receive annually.

According to the Sun Life class action lawsuit, Sun Life calculated the cost of living increase based on Class Members’ net long term disability (LTD) benefit after deductions were applied instead of applying them to the gross LTD benefits before the deductions were applied.

This method of calculation was allegedly not the method specified in the long term disability policy and resulted in Class Members receiving a smaller cost of living increase than they would have received had Sun Life calculated the increase appropriately.

Sun Life knew that it was calculating the cost of living increase in a manner that was inconsistent with the terms of the policy, and the company knew that it was misleading policyholders, the Sun Life class action lawsuit alleges.

The Sun Life class action lawsuit is seeking $10 million in punitive and exemplary damages, according to an announcement about the litigation issued on Feb. 19.

Plaintiff Giulia Belec of Carleton Place, Ontario says she was employed by the federal government for 37 years until her medical retirement in August 2011.

Belec filed the Sun Life class action lawsuit on behalf of herself and a proposed Class of persons who are, or were, employed by the federal government and who received long term disability benefits from Sun Life under Group Policy No. 12500-G at any time since April 30, 1997.

If you meet these criteria, you may qualify as a Class Member of the Sun Life Assurance class action lawsuit.

Connolly Obagi LLP, the law firm representing Belec in the Sun Life class action lawsuit, is asking putative Class Members to contact the law firm and to provide their name, group certificate number, history of employment with the federal government and their history of long term disability benefits that they’ve received.

Did you work as a federal government employee and receive long term disability benefits from Sun Life? Let us know in the comments below.

Belec and the putative Class Members are represented by Joseph Y. Obagi of Connolly Obagi LLP.

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