Question
Will receiving my disability retirement in a lump sum affect my payments?
My father receives long term disability from Met Life. He was awarded disability from the Social Security Administration, and received a lump sum. Will he have to pay money back to Met Life, like subrogation, or will Met Life just decrease his benefit payments according to what he is being paid through the Social Security Administration. He has also received his disability retirement in a lump sum. Will that affect his payments too? I’m a legal assistant and am reading over the policies that his company had with Met Life, but I have to say it is rather confusing, even for me. Thanks!
Answer
Brandi, look at the “Other Income Offset” section of the MetLife policy, which will specify which types of “other income” they will offset for and the manner in which they will take the offset. In general SSDI benefits are offset on a monthly basis and any back benefit award would result in an overpayment that will have to be paid back to MetLife, separate from the ongoing monthly benefit offset. It is likely that his disability retirement lump sum will also result in some form of offset/overpayment. Depending on the Policy language, they will likely offset on a monthly basis for some length of time into the future. I suggest you contact our office and speak with one of the attorneys to discuss your situation in more detail.
