Cost of Living increase and Sunlife

Hi , I’m on medical retirement and receiving a smallish amount from Sunlife, Does anyone know if Sunlife will deduct any monies received by CPP and my pension due to cost of living increase?

Usually they deduct the initial CPPD amount but don’t adjust it for annual increases. I can’t explain why but I’m not going to argue it.

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Hi, I am on CPPD and also Medical Retirement.
Sunlife does not deduct increase due to inflation on CPPD, I would assume same applies for COL increase for Medical Retirement .

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I believe many or most policies allow the LTD payment to be offset by the CPP-D benefit as originally estimated, but they cannot offset against any inflationary increases. This is likely true especially where the LTD benefit does not contain a COLA adjustment because then the calculation would not make sense.

So most likely, you’ll keep the inflationary increase from CPP-D for yourself.

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Whether Sunlife can deduct your CPPD inflation increase will depend on the wording of your Sunlife insurance policy. There would need to be a clause specifically allowing them to do it. 95% of the time there is no such clause or it actually says the claimant gets to keep CPP cost of living increases.

David Brannen

Disability Lawyer with Resolute Legal

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