The federal government imposed financial sanctions on Canada Life following delays in benefits access for federal public service workers. This move follows collective bargaining changes and subsequent public outcry, with grievances filed by the Public Service Alliance of Canada over mismanagement in the transfer of the Public Service Health Care Plan.

The Canadian federal government has begun imposing financial sanctions on Canada Life for failing to meet its contractual obligations under the public service health insurance plan. This action follows complaints from public servants and unions over long wait times, delayed claims processing, and other service failures.

PSAC has filed a policy grievance over Canada Life's mismanagement of the transition of the Public Service Health Care Plan from Sun Life, alleging that the insurer's actions led to delayed claim processing, financial hardships, and discriminatory treatment affecting tens of thousands of federal public service workers.

The Public Service Alliance of Canada (PSAC) has filed a policy grievance seeking financial compensation and damages for public servants affected by the transition to Canada Life as the federal health benefits administrator. The grievance cites significant delays in claims processing, mishandling of service, and adverse impacts on members, including those with disabilities and other marginalized groups.

Union members gathered outside Canada Life’s Ottawa office to protest ongoing issues with the administration of the Public Service Health Care Plan, citing delays in claims reimbursements, poor customer support, and conflicting information, which have led to significant out-of-pocket expenses for public servants and retirees.

Canada Life has detailed its commitment under the Modern Slavery Act 2015 by implementing rigorous due diligence for its suppliers and mandatory employee training on ethical behavior and the Code of Conduct, aiming to eliminate modern slavery and human trafficking from its operations and supply chains.