Fine v. Sun Life Assurance Co. of Canada

Fine v. Sun Life Assurance Co. of Canada - Plain English Summary

What Happened

Richard Fine received long-term disability (LTD) benefits from Sun Life Assurance Company of Canada. The company later discovered that Fine's income—from his work as a Non-Executive Chairman and board service—had grown so much that he no longer qualified for these benefits under the plan's rules.

What the Court Decided

The court agreed that Sun Life was right to stop Fine's LTD benefits starting January 1, 2012. His earnings had exceeded the 80% income threshold that determined his eligibility. However, the court ruled that Sun Life could not recover most of the benefits it had already paid Fine in error. The court considered it unfair to claw back money Fine had already received.

Why This Matters for Workers

This case shows that disability benefit plans have specific income limits. If your earnings increase while receiving benefits, your eligibility may end. However, employers cannot always reclaim benefits already paid out, even if a mistake occurred. Workers should carefully review their benefit plan rules and report changes in income promptly to avoid disputes.