August 2, 2006

Important information for PSAC members who have received  Sun Life rehabilitation income benefits

Disabled members who have participated in an approved rehabilitation program and who have worked less than full-time and received rehabilitation income benefits from Sun Life are eligible to have their cases reviewed if they were penalized when they received retroactive pay as a result of wage increases negotiated by their union. 

The income received from Sun Life, combined with the income from their part-time employment, will now be calculated at the current rate of pay for the position they held before becoming disabled. 

Before this change was made, the Sun Life rehabilitation income was coordinated with the salary in effect at the time the member became eligible for Sun Life disability benefits.  This meant that retroactive pay would create over-payments of Sun Life income.  Instead of retroactive pay being a benefit, it effectively created financial hardship for disabled members.

This change is retroactive to January 1, 2006.  Anyone in an approved Sun Life rehabilitation program on or after that date will automatically receive retroactive adjustments to their disability benefit, once Sun Life is notified of the new salary information by the member’s Compensation Advisor. 

Anyone who participated in rehabilitation programs before January 1, 2006 may request a review of their situation to determine if they were adversely affected by the former policy.  The Treasury Board web site has more information about this process which can be found at: http://www.tbs-sct.gc.ca/hr-rh/in-ai/2006/0726_e.asp