Benefits And Employer Liability: Administrating And Advising Benefit Plans

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Miller Thomson LLP

Contributor

Miller Thomson LLP (“Miller Thomson”) is a national business law firm with approximately 525 lawyers working from 10 offices across Canada. The firm offers a complete range of business law and advocacy services. Miller Thomson works regularly with in-house legal departments and external counsel worldwide to facilitate cross-border and multinational transactions and business needs. Miller Thomson offices are located in Vancouver, Calgary, Edmonton, Regina, Saskatoon, London, Waterloo Region, Toronto, Vaughan and Montréal.
What obligations do employers have re: benefit plans?
Canada Employment and HR
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Benefits and Employer Liability

What obligations do employers have re: benefit plans?

1. Administrating benefit plans

Duty: to diligently administrate benefits

2. Advising re: benefit plans

Duty: to accurately describe benefit coverage

Administrating Benefit Plans

  • Administration activities:
  • issuing benefits summaries and/or policy books
  • enrolling employees in a benefits plan
  • providing medical questionnaires
  • collecting premiums
  • reporting incomes to the insurer
  • assisting employees in making claims
  • and more

Administrating Benefit Plans (cont.)

Pittman v Manufacturers Life Insurance Company [1990] N.J. No. 36.

  • Employee applied for optional life insurance for his spouse under employer's group benefits plan.
  • Company's responsibility to receive the applications on behalf of the insurance company.
  • Employer lost the application, never provided it to insurer.
  • Employee's wife passed away.
  • Insurance denied: no record of wife's application.

Administrating Benefit Plans (cont.)

Newfoundland Court of Appeal:

  • Insurance company would have accepted application if received.
  • Employer was agent of the insurer for the purpose of receiving the application.
  • Both employer and the insurer found liable for value of wife's coverage: $50,000.

Advising on Benefit Plans

What kind of details do employees want / need to know? Includes:

  • The nature of the benefits offered;
  • The extent of benefit coverage; and
  • Requirements for eligibility.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Benefits And Employer Liability: Administrating And Advising Benefit Plans

Canada Employment and HR

Contributor

Miller Thomson LLP (“Miller Thomson”) is a national business law firm with approximately 525 lawyers working from 10 offices across Canada. The firm offers a complete range of business law and advocacy services. Miller Thomson works regularly with in-house legal departments and external counsel worldwide to facilitate cross-border and multinational transactions and business needs. Miller Thomson offices are located in Vancouver, Calgary, Edmonton, Regina, Saskatoon, London, Waterloo Region, Toronto, Vaughan and Montréal.
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