Cost of Living increase and Sunlife

1

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?

2

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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3

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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4

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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5

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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