Sun Life Veterans Benefit Offset Litigation
Sun Life Veterans Benefit Offset
The lawsuit challenges the policy and practice of Sun Life Assurance Company of Canada ("Sun Life") in offsetting veterans' long-term disability ("LTD") benefits with the amount of veteran disability benefits they receive from the U.S. Department of Veterans Affairs.
The Complaint alleges that Sun Life's interpretation of its LTD Policy discriminates against their veteran/servicemember employees based on their service in a uniformed service and their receipt of veterans benefits in violation of USERRA. The Complaint also challenges Sun Life's interpretation of its LTD Policy to allow for veterans disability benefits to be offset under the plan. Alternatively, the Complaint alleges that Sun Life has breached its fiduciary duties in connection with its disclosure obligations and has participated in breaches of the Plan Administrators' by failing to disclose the offset to plan participants. Finally, the Complaint also alleges that Sun Life has violated the Veterans Act by assuming the role of creditor and demanding payment of the amount of veterans benefits from participants who were "overpaid."
The Complaint was brought on behalf of a class of persons defined as follows:
- All participants in an ERISA-covered long-term disability plan that is insured by Sun Life Assurance Company of Canada pursuant to an Applicable Policy who either were discharged from service in the United States Armed Forces under conditions other than dishonorable or are servicemembers (the "Participant Class"), and
- the beneficiaries of such participants (the "Beneficiary Class Members").
Status of the Litigation
This lawsuit is currently pending in the District of Massachusetts. The Complaint was filed on October 25, 2016.
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