![]() ![]() The Policy in question states that any benefits under the following sources are considered “other income benefits”: (a) workers’ compensation law or (b) occupational disease law or (c) unemployment compensation law or (d) compulsory benefits act or law or (e) an automobile no-fault insurance plan or (f) any other act or law of like intent… Sun life long term disability trial#Holbrooks, the trial court and the court of appeals have upheld Sun Life’s Decision. Sun Life upheld its decision and ultimately a lawsuit was filed. ![]() Holbrooks appealed Sun Life’s decision to offset the benefits. Seeing as the policy did not specifically list VA Benefits as being “offsettable”, Dr. After being awarded VA benefits, Sun Life determined that such benefits were “other income benefits” and thus reduced the amount of benefit they paid each month by the amount he was getting from the VA. Holbrooks also was entitled to receive service-connected disability benefits from the Department of Veterans Affairs. In addition to his disability benefit from Sun Life, Dr. ![]() Holbrooks would receive benefits in the amount of 60% of his prior monthly earnings. Holbrooks applied for and was approved for LTD benefits under a Sun Life Long Term Disability Insurance Policy that was provided to him through his employment with Community Health Systems. Holbrooks was unfortunately diagnosed with Amyotrophic Lateral Sclerosis (ALS, or better known as Lou Gehrig’s Disease). Holbrooks worked as an Anesthesiologist for Community Health Systems. After being honorably discharged in 2003, Dr. Howard Holbrooks served for six years as a physician in the United States Army. With the case in question, the policy did not specifically state that VA benefits would be offset. Some policies will even offset for VA benefits. Often times other income benefits will also include retirement benefits if they were funded by the claimant’s employer who sponsored the LTD Policy, workers compensation benefits, and benefits received from other Group Disability Insurance Policies. In most instances, the policies will allow an offset for Social Security Disability Benefits and Social Security Retirement benefits the claimant or the claimant’s dependents receive. The policies will then list what other income benefits they will “offset” for. Most, if not all, LTD ERISA group insurance policies contain language in the policy entitled “Other Income Benefits.” This section of the policy states that if a claimant is receiving Long Term Disability benefits and also benefits from other sources, the insurance company may reduce the Disability Benefits by the amount of money the claimant is getting from the other sources. While this case is not “binding precedent,” it can serve as a warning for those that are receiving VA Benefits, or any other income benefits, that are not listed in their Long Term Disability (LTD) ERISA Policy. In an unpublished opinion issued on Jfrom the United States Court of Appeals for the Tenth Circuit, a Federal Court ruled somewhat surprisingly and approved Sun Life’s decision to “offset” VA Benefits from a disabled Veteran’s monthly disability benefits. ![]()
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