I am a pilot currently on the LTD program with American Airlines. The CBA states that I may not earn one nickel above the LTD check that is provided me monthly without any earnings being 100% offset. Does this seem to be challenge-able as I would like to seek a part time job to add to my family's income and provide for a retirement fund as I no longer receive a company contribution. AA, as per the last labor agreement, states that any earned income is 100% offset, thus locking me into LTD pay only for all my future.Delta Airlines Pilot LTD plan allows one to earn up to what they were earning pre disabilty before any offsetting occurs. I wanted to add a follow on to this discussion. One is allowed to garner additional income if one has prepurchased an insurance policy, say from said Union, yet one is not allowed to earn any additional monies above the LTD check. Something smells wrong about this.
The contract for the ltd benefits controls. Have it reviewed by an attorney who handles disability claims
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It depends on the terms of the policy, but this is a typical provision in LTD policies. This is done to prevent "secondary gain," where people purposely become disabled so they don't have to work but make the same amount of money.
If that is what was negotiated by your union you are probably stuck with it. It is common for policies to discourage work while you are on LTD. Talk to your union rep or an insurance lawyer.
As the other attorneys have explained, this is a common policy term in LTD plans and as a negotiated benefit it is twice as hard to come back around and attack the plan terms because your agent (the union) negotiated those terms on your behalf.
I do not know the basis of your LTD claim, but i would add a word of caution. Regardless of offsetting income, returning to work in ANY capacity will impact your LTD benefits. At some point, the insurer will say "if he/she can do X, why cant he/she do his old job." You are going to read what i just wrote, and think of a justification in your case. Your insurance company will not care. One you have one foot back in the workforce, they will try to push you all the way in. They can deny your benefits and starve your for 9 months or more. They may lose, and you may be proven right, but it is a very big hassle. I strongly urge you to chat with someone who does this for a living before undertaking any attempted return to work, whether in your old occupation or a new one.
Also, as a secondary word of caution, the assumption that you will receive benefits forever is dangerous. Your policy likely has a "rollover." That is a time frame at which the definition of "disability" changes. Most policies have one, yours may as well. At that point, mantaining benefits will require you to be "unable to do any job in the national economy," or some deviation of that wording. That is a much more difficult standard. Figuring that out may impact your upcoming decision. Best of luck.
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