Is Long Term Disability offset by Social Security retirement income?

Asked 11 months ago - Chicago, IL

My mom is on LTD from work because battling cancer. Her LTD insurance company is offsetting her LTD income with her Social Security retirement income. That doesn't right to me. Wouldn't she have to be on Social Security disability for them to be able to do that?

Attorney answers (5)

  1. Mikel Edward Lupisella

    Contributor Level 14


    Lawyers agree

    Answered . It all comes down to the language in the policy. This is a contractual matter that is governed by the policy language. In most cases, they have a provision that allows them to offset for receipt of other supplemental benefits, like social security, WC, etc.
    Most likely, the language in the policy just states social security and not specifically social security disability or SSI.
    Review the disability policy and if still unclear, I would seek the advice of a local attorney that handles disability or contract cases.

  2. Steven A. Bander

    Contributor Level 8


    Lawyers agree

    Answered . Request a copy of the LTD policy. Human Resources at your Mom's work and the carrier will have a copy of the "booklet." Read the offset portion. If the policy only allows for offset of SSDI w/o any mention of SS retirement benefits, a simple letter from an attorney should set them straight. Typically, all long-term disability policies end at age 65, particularly those you receive as an option through the employer. On rare occasions, they extend to 70. These policies are governed by Federal Law (ERISA). The only policies I have seen that extend beyond 65 are private policies. These policies typically do not have offsets unless you choose such an option. I would double check all the facts prior to getting advice from an attorney. Good Luck.

  3. Michael T Warshaw

    Contributor Level 17


    Lawyers agree

    Answered . What do you mean by "Long Term Disability?" If workers' compensation, there is a statutory offset to limit your total compensation to 80% of your average wage, provided each benefit does not exceed its statutory maximum. If a private policy, then the policy language will control the answer to this question.

    The content of the this submission is intended to provide general information on the topic presented, and is... more
  4. Jeremy Lyle Bordelon


    Contributor Level 15


    Lawyers agree

    Answered . I agree with everyone who says it depends on the policy. I've seen a lot of LTD policies that do offset Social Security retirement, and not just Social Security disability, but they will often limit it to Social Security retirement benefits that begin AFTER disability, as opposed to retirement benefits that people were already receiving BEFORE they went on LTD.

    Jeremy Bordelon is a licensed attorney in the State of Tennessee only, and is authorized to practice in all... more
  5. Eva Ruth Clement

    Contributor Level 11


    Lawyers agree

    Answered . This seems unusual to me that the offset would be with Social Security retirement income as opposed to disability income. I would review the language of the policy very carefully to make sure you are in compliance. Please consult an attorney if you need help reviewing the policy.

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