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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Comments (2)

  • 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 Gavidia Nov 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.

    Ken Nov 12, 2019  #1


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, 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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Lisa S.

I came to Dell & Schaefer after an attorney firm in Maryland decided in August they could not win my case and decided to drop me with my Appeal for LTD with Aetna due in October. I contacted Dell & Schaefer and sent the firm my information. They assigned me to Rachel Alters who is the best. She explained to me it normally takes 4-6 months to do an appeal, but Rachel assured me she would do her very best to win my Appeal in the limited time we had remaining to submit an Appeal.

Rachel worked very hard and we had some long phone calls, even though I have never met Rachel face to face I feel she is part of the family. I got a call from Rachel the beginning of December letting me know we won the case and that Aetna would be reinstating my benefits. There is nothing more I could ask for. Winning an appeal for LTD would not have been possible with out the law firm of Dell & Schaefer.

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