This is a contracts question. It is impossible to answer without reviewing the STD and LTD policies. Generally speaking, however, most STD and LTD policies to have a setoff provision for "other income", which includes Social Security disability benefits. That means that the STD and LTD can reduce the STD and LTD benefits by your Social Security income. While you were not receiving SSA benefits, there was no setoff, but now that you are receiving the SSA backpay, the setoff applies retroactively and you will likely have an "overpayment", which means you likely have to give the insurance company most of your SSA backpay. Again, these are generalities, and you should seek the advise of an attorney in your area.
This comment is published by and reflects the personal views of Nick Ortiz, in his individual capacity. It does not necessarily represent the views of his law firm or his clients, and is not sponsored or endorsed by them. The purpose of this comment site is to assist in dissemination of information about disability law, but no representation is made about the accuracy of the information. The information contained in this comment is provided only as general information for education purposes. The tips and suggestions contained in this comment may not be appropriate for your individual case. Please do not accept anything in this comment as legal advice unless and until you have hired me to represent you in your claim for benefits, and I have agreed – in writing – to represent you. By using this website you understand that this information is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice. This comment should not be used as a substitute for competent legal advice from a licensed attorney in your state.
Mr. Ortiz is quite correct. It is common for an LTD contract to require reimbursement from retroactive Social Security disability benefits for the months of LTD benefits in which Social Security was later awarded. "Everyone you talk to" do not seem to understand that this result is a contractual term between the insurer and the insured. If the LTD benefit exceeds the Social Security benefit, you will likely receive both checks every month for the foreseeable future, but if you refuse a valid reimbursement demand, the LTD carrier can recover from future benefits due and can even file suit and take judgment.
Review of your LTD contract by local counsel would be most prudent.
Best wishes for an outcome you can accept, and please remember to designate a best answer.
This answer is offered as a public service for general information only and may not be relied upon as legal advice.
My colleagues are correct. And as far as what "everyone" says, well, I assume they have not seen either the LTD or STD policy of insurance, which normally DO require repayment of the money, and I am guessing they are not attorneys.
This is a complicated are, so you will want to meet with an attorney who handles LTD, STD and ERISA matters.
Sorry for the bad news. Best of luck to you.
The exact answers to questions like this require more information than presented. The answer(s) provided should be considered general information. The information provided by this is general advice, and is not legal advice. Viewing this information is not intended to create, and does not constitute, an attorney-client relationship. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. You should not take any action that might affect your claim without first seeking the professional opinion of an attorney. You should consult an attorney who can can ask all the appropriate questions and give legal advice based on the exact facts of your situation. The general information provided here does not create an attorney-client relationship.
It is very common for an insurance carrier to ask for repayment. Most Long Term Disability policies include such a provision. Probably it is not a criminal matter, but it may be depending on your state's laws. Probably the insurance carrier will sue you for the unpaid amount, then attempt to recover by levying bank accounts or placing liens on real estate that you own.
Ask the insurance company to show you the contract that you signed, promising to pay it back.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.