Can my disability insurer offset pension or retirement benefits that I’m drawing from a previous employer?

It is common for group disability insurance policies to contain provisions “offsetting” or reducing the monthly disability benefit by other income benefits being received by the insured, such as social security disability, workers compensation benefits and state disability benefits. Also, these same “offset” provisions often reduce the monthly disability benefit by pension or retirement benefits drawn by the insured. Typically, offset provisions only allow the disability insurer to reduce the monthly disability benefit by pension or retirement benefits associated with the plan sponsor / employer, and not any pension or retirement benefits issued by any previous employer. The policy and offset provision must be read carefully in order to ensure that you could draw pension or retirement benefits associated with a previous employment.

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There are 2 comments

  • Ken, you would need to request and carefully review your disability insurance policy’s provisions regarding “other income benefits”. Typically, retirement benefits and pension from another employer is not usually counted against your Liberty Mutual benefits, as long as both the disability policy and retirement, pension etc. are not both from the same employer. Request and review your policy is the bottom line.

    Cesar GavidiaNov 12, 2019  #2

  • I am currently finishing up STD, and applying for LTD. I am voluntarily retired from the Federal GOV, and draw a monthly annuity. Can this income be counted against me? I have an elected LTD benefit with LM. Also, I am reading that 401K withdraws can be counted as income, I am confused – 90% of my Post Retirement 401K are my contributions, how can that be used against me for earnings? I was able to retire at 53 based on Federal Law Enforcement 50/20 rule. I took a “Retirement Job” which enables STD/LTD.

    KenNov 12, 2019  #1

FAQ

Do you work in my state?

Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

What are your fees?

Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.

In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.

Do I have to come to your office to work with your law firm?

No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via telephone, e-mail, fax, GoToMeeting.com sessions, or Skype. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.

How can I contact you?

When you call us during normal business hours you will immediately speak with a disability attorney. We can be reached at 800-682-8331 or by email. Lawyer and staff must return all client calls same day. Client emails are usually replied to within the same business day and seem to be the preferred and most efficient method of communication for most clients.

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Patricia H. (Hawaii)

I would have never received a penny if I did not seek the help of Dell & Schaefer Law Firm. I was not able to get The Hartford Insurance Company to pay me no matter what I did. I had paid into the system which was denying me the benefits when I needed them the most! I was sick, recovering from chemotherapy and was told by my doctors not to return to work until my lab values were within the normal range. Trust me I wanted to get better! Finally, with the consistent help of attorney, Stephen Jessup, we won the case and I received payments.

I am now well and not in need of long term disability. This is a situation where the insurance company denied me until a law firm was there to back me up. When this firm says they will do whatever it takes they mean it. I highly recommend Stephen Jessup. I am thankful for the ability of this legal team to fight for our rights.

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