LTD, SSDI

[Ann lafontaine]

I have a question about my company is giving me LTD. They had a company help me file for SSDI, which I got. They helped me file for my 17 year old son. I was told that he would be able to keep his monthly SSDI. Now, they tell me that want all the back pay and monthly ssdi payments he receives. I put some of his money in stock funds and into his 1995 BMW.
Now, they want all the money back! Why didn't they tell me this before I spent it? Is this legal to take my sons SSDI? I live in Georgia.

Thanks,

Ann

[MSW1963]

Ann, most LTD policies have a clause requiring those who qualify for LTD benefits to apply for SSDI. The clause includes an SSDI payment off-set for benefit amounts that exceed the 60%? 65%? of your LTD policy replacement income.

I don't know how that relates to your son's SSDI back pay benefits, but the LTD insurer will use SSDI retroactively to the effective date you were approved for SSDI benefits during the LTD benefits period.

I'm sorry to hear this caught you off guard, I imagine what a shock it must be for you. But the offset is a standard clause in LTD policies, and again I don't know how the offset applies to your dependent's SSDI benefits.

Best thoughts headed your way.

[pennstater]

Ann,

If I understood correctly, LTD was awarded and paid prior to SSDI. It seems odd to me that the LTD company did not immediately take any retroactive SSDI awarded, along with ongoing. Usually, with offsets from SSDI, they get it ASAP.

How long has it been. I would make sure to get a written explanation regarding the delay and why you were not informed previously. Ask for a copy of the LTD policy and review carefully. I had to get mine from our company's plan administrator, the insurer would not provide.

If any doubt on LTD contract wording, you may need an ERISA attorney, who specializes in employer related law. Make sure it is one who is familiar with LTD group policies.

Good luck to you.

[pennstater]

Ann,

If I understood correctly, LTD was awarded and paid prior to SSDI. It seems odd to me that the LTD company did not immediately take any retroactive SSDI awarded, along with ongoing. Usually, with offsets from SSDI, they get it ASAP.

How long has it been. I would make sure to get a written explanation regarding the delay and why you were not informed previously. Ask for a copy of the LTD policy and review carefully. I had to get mine from our company's plan administrator, the insurer would not provide.

If any doubt on LTD contract wording, you may need an ERISA attorney, who specializes in employer related law. Make sure it is one who is familiar with LTD group policies.

Good luck to you.

[MSW1963]

I agree with pennstater about the retroactive LTD off-set usually being withheld from SSDI back pay award amount. Particularly since the LTD? carrier directly or indirectly hired SSDI representation for your SS claim.

Most local chapters of the NMSS have a referral list of ERISA attorneys who offer initial consultations.

You do need a full accounting and explanation in writing from the LTD carrier, the 3rd party who represented your SSDI claim and from SSDI why the off-set amount was not automatically withheld from your back pay award and sent to the LTD carrier.

How your son's back pay comes into the picture also needs a full accounting and explanation from all parties involved.