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John, Employment Lawyer
Category: Employment Law
Satisfied Customers: 5731
Experience:  Exclusively practice labor and employment law.
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Worked 2 full time jobs for ~ 20 years each. Both LTD

Customer Question

Worked 2 full time jobs for ~ 20 years each. Both LTD carriers want to reduce my benefit by my whole social security claim. I was supposed to be protected (income wise) until I reached 65/66 yo. Is this legal?
Submitted: 1 year ago.
Category: Employment Law
Expert:  John replied 1 year ago.

Hi, thanks for submitting your question today. I will refer to the employer's disability policy as "DI" and Social Security Disability as "SSDI" for the remainder of this answer to avoid confusion.

Most DI providers these days have a provision in their policy that requires that their disability payments coordinate with SSDI. There is no law that prohibits insurers from doing this. What that means is that the amount that DI pays or owes you is reduced by the amount SSDI is found to owe you. Further, most DI providers these days require you to cooperate with them in filing for your rightfully owed SSDI benefits,and if you do not cooperate with them they are allowed to stop DI payments. Lastly, even though it may take some time to get the SSDI benefits through filing and possibly having to go through a hearing, SSDI awards benefits up to a year retroactive from the application date. And, the DI policy usually has a claw-back provision that states whatever benefits DI paid out while awaiting for a SSDI decision or retroactive payment may be owed back to the DI insurer. There are no laws that prohibit the plans from having these offset provisions.

Expert:  John replied 1 year ago.

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