SSD and LTD payments

• By Jen457
• Posted April 28, 2009 at 11:32 am
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I found the following on a lawyers web site: Generally speaking, employer-sponsored group Long-Term Disability benefits (LTD) are different from privately purchased Long-Term Disability benefits in that private LTD plans may or may not have an offset for Social Security and workers' compensation benefits. Almost all employer-sponsored group Long-Term Disability plans (LTD) require an offset.
I wish I had better news. You might want to talk with a lawyer.

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• By Shamrock2009
• Posted April 28, 2009 at 11:50 am
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Thanks Jen 457. I am going to request a copy of the contract from my employer to see if this offset is mentioned because it certainly is not in the brochure I received upon employment.

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• By dotdot
• Posted April 28, 2009 at 9:05 pm
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Shamrock 2009. I am going to request you as a friend so I can give you some information. I received my first LTD check on Monday a week ago, which included pay from Dec. thru March. I received my SSDI awards letter on Friday. Like you, I have STD and LTD. The LTD representative told me up front that I would have to send a copy of SSDI awards letter if I was aproved. I was told that they would adjust my income as to not go over the amount of the monthly income I was receiving.
Like you, I have been searching the internet and met with finance at the school board office today, and no one can give me any answers as to how it works.
I saw an examples where LTD had a company to recoup money from your account for overpayment.
I'm trying to be careful and hold some of my money in case I have to return some of the funds.

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• By sanrose
• Posted April 29, 2009 at 5:47 am
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After 6 months they (the insurance co) told me I had to apply for SS. I don't see it in my contract either and since I made weekly payments thru my employer for over 10 years, I do not think this is fair. Also, I applied for and received a disability pension and they deduct this also. Not fair at all. So in other words, the original amount doesn't change it just comes from different sources.

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• By Shelter
• Posted April 29, 2009 at 7:59 am
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I live in CANADA
and am facing the same issue currently

I was first accepted into Disailibty Pension (Gov)
then afew weeks later recived a check from LTD
(thru my work).... I thought YAY
finally wnough to live on
about 3 weeks alter I recieve letter form LTD stating
If I am in receipt of Disability , the they deduct that from the LTD

meaning
LTD = $700 a month
Dis. = $816 a month

meaning
I get ZERO from LTD even after paying in to it for the past 7 years!!!!!!!!!!!!!!!


somethings wrong
and I am going to do somthing
not sure how

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• By Nancy2627
• Posted April 29, 2009 at 9:09 am
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I began receiving SSI after being off work
for 6 months. It is a very generous amount
since they based it on my nurses salary.
I also received long term disability thru the
hospital I worked at which is fairly generous also. I think I start getting medicare 18 months later. I am worried
about how that will work. Then only thing
they have refused to cover so far is a Pet
scan and arenesp. I have a HMO.
Sincerely, Nancy

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• By Teresalynne
• Posted April 29, 2009 at 10:09 pm
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I am a HR officer and our LTD does have to be reported to SS and it is adjusted. I too think this is unfair, but seems to be the standard across the board. I don't know what can be done to change this.
Teresa

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• By dotdot
• Posted April 30, 2009 at 8:53 pm
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Shelter, I found out today that LTD will deduct the SSD amount from their amount leaving LTD only paying $300 monthly.

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• By dotdot
• Posted April 30, 2009 at 8:55 pm
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Teresa, since I am not of retirement age and receiving SSDI what paperwork will I complete to leave my company? I was told by SS that I do not have to retire since I am disabled.

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• By Shamrock2009
• Posted May 3, 2009 at 8:24 pm
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Hi Nancy,
I was told by SS that you must be receiving SSD for 2 years before being eligible for Medicare. However if you are eligible for SSI then Medicaid can be started immediately.

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• By dotdot
• Posted May 3, 2009 at 9:28 pm
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Nancy, my letter stated that I would have to wait two years for medicare.
Shelter, my LTD worked the same way as yours and now LTD only will pay me a little over $300. Also, I will probably have to pay LTD some money back for offset.

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• By leolion
• Posted May 4, 2009 at 11:57 am
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Shamrock,

I too have Stage IIIC OV, along with Mylodysplasia Syndrome (bone marrow is destroyed), which is a blood disorder caused by chemo. THE OV is in remission, but I am getting chemo shots to boost up my bone marrow. I was on short-term disability for one year, then in September of 2008, it converted to LTD. Part of my employer's requirement is that you apply for SSDI benefits. I applied in September and was approved in February. SS told me there is a five-month waiting period. I was back-paid from September to February and had to pay back the difference to my employer's LTD. Currently, I am receiving SSID and my LTD, which was reduced so I make the same income I was getting from LTD. I opted for the after-tax LTD (66 2/3%) when I was working, so no Federal taxes are taken out.

It's a very complicated process, but I think it's pretty standard. I know every employer and every state is different (I live in NC), but I am just glad to get close to what I was making when I worked.

Let me know if I can be of further help. I know it's frustrating dealing with cancer, then this on top of it!

Take care,

Jenny

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• By Shamrock2009
• Posted May 14, 2009 at 3:20 pm
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Thank you to everyone who responded.
I may investigate with my state's Insurance Commissioner if it is indeed legal in my state to offset my LTD with SSD payments.
Just yesterday I was notified by SSD that they have approved my SSD application and payments will start in August. I filed on line just 4 weeks ago and 2 1/2 weeks ago I dropped off my medical records to the SS Office. This approval was unbelievably quick.

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