A few options, unsure of consequence

[LisaL77]

Hi, I work as an accountant for a small company in Rochester NY. I am paying for short term disability through the company and through AFLAC. Long term disability is paid by the company. They are very aware of my MS, as I had my first acute flare right before their eyes. They are very kind about my medical issue and allow me to take off time for fatigue/pain/numbness, etc without question.

I am working with my Neuro on boosting energy and alertness because I am crashing each day between 11 am and 3 pm to a level where I want to sneak out to my car and sleep.

I mentioned to my husband and Neuro office nurse it would be nice if I could work 5-10 hours less a week so I have energy to better balance home life and career. Both of them told me a move like that could impact how much I would be entitled to regarding short term disability, long term disability and social security.

My husband's income level is a lot higher than mine, and he is maxed on his social security contribution.

Would there be a potential impact on my future benefits if I dropped work hours from full time to 30-35 hours a week? I am struggling with doing a good job at my job and completing necessary tasks at home and carving out family time.

Thanks to anyone who responds.

[pennstater]

Hi Lisa,

I am in similar position and trying to figure out next steps. My understanding that yes, any reduction in salary can impact future SS payments, as well as any SSDI or private disability insurance payments.

I believe social security and ssdi are based on an average of your lifetime earnings. If you only have a few years to work, then it may not matter much. In my case, I am 19 years from retirement, so it could definitely impact the numbers if I am fortunate and can work that long.

I know my STD and LTD are based on % of salary when I become disabled. So again, if I take a lower paying job and then do become disabled, these benefits are lower as well.

I hope to talk to a financial planner soon and weigh all the options to figure out what salary would allow me to cut back, but not put my future at tremendous risk.

Good luck to you.

[LisaL77]

Ugh, pennstater, that is what I was afraid of!

Thanks for responding, I kind of thought that was going to be the result. So, God forbid you try to adjust your work schedule so you can work, but work less so you have some mindshare, energy and bandwidth to actually get stuff done at home.

I believe I am entitled to my husbands Social Security, and he earned a lot more than me over the years. I have been working since early 20's, so at least I have a long history, even though earnings were low.

I guess I will keep on keeping on until I can take it no more. I really do struggle to balance home and work, though. The fatigue is overwhelming. Good luck and I hope you are successful in your endeavor to gain some control.

[MSW1963]

STD, LTD and DI insurance policies are considered income replacement policies and are based on income at the time a claim is filed. HR departments are know for encouraging employees to PT employment without disclosing the effect on eligibility for benefits or possible reduction in benefit payments.

Group income replacement policies have a variety of eligibility periods, waiting periods and 'look back' periods that must be met and will determine if a claim is eligible for payment when it's filed.

There is a possibility for an employee with a 4 year employment history to have a claim denied as pre-existing condition based on the 2yr look back provision in the typical group STD/LTD policy.

The look back period is typically 2yrs from the effective date of the policy. It allows the insurance company to look into your medical history, request detailed records from every doc you consulted during the 2yr period. If there is notation regarding a sensory sx mentioned during an office visit with a PC doc, the claim will likely be denied as a pre-existing condition.

Once the look back provision is met, claims can not be denied for pre-existing condition.

It's important to understand the various provisions in your group policy before you file a claim. Use annual leave such as personal days, vacation time and apply for FMLA to protect employment status until all policy provisions are met before filing a claim.

Best of luck to you and take care

[Cat Mom]

I don't know the US rules but something to think about... would reducing your working hours make you a part-time employee = part-timers aren't eligible for benefits?
Jen

[LisaL77]

Thanks MSW1963, the plot thickens, eh?

I picked up STD from AFLAC this past January, too.

I have no idea what the stipulations are for either STD at work or through AFLAC. I am going to stick it out as many years as I can and try to be more efficient and conserve energy so I can balance home/work life better.

I feel hamstrung, really.

[MSW1963]

Hi LisaL77, you can probably get some indication of AFLAC's reputation and what to expect when filing disability claim from AFLAC by googling a search for complaints, reviews or similar a search term.

Also, know what to expect from your Group Disability policy. Do you have LTD coverage?

I'm not sure what the outcome will be with two STD policies, there may be some kind of limitation in the policy on collecting benefits on one or both policies. Possibly something similar to the COB=coordination of benefits clause in the policy, similar to being covered by 2 health insurance plans. Paying 2 premiums for minimal coverage or a denied claim for one or both policies may not be money well spent.

Best of luck and take care

[kmallory1]

Your Social Security Disability eligibility and amount of benefits is based solely on your employment history and earnings, and is not affected by your husband's record or income.

[LisaL77]

MSW1963, I am almost afraid to ask about the STD here at work. I do have LTD here, paid by the company. I could say I am preparing for a possible future pre-retirement problem, even though I plan to work until retirement. Plan for the best, prepare for the worst, eh?

Thanks, kmallory1 for that important tip.