New York Life
New York Life cut back my payments because I had a pension
I paid for disability insurance for 25 years. At first New York Life paid. After about 1 year, they sent a letter stating they had overpaid me. They said because I had a pension they should not have paid me the amount they did. They were cutting the benefit back, and I could either pay them the amount they claimed to overpaid or they would keep all future payments until it was paid. What they claimed was a pension is my savings with the company and companies matching funds. Who would pay the insurance premium when the more you saved, the lower benefit you would get from the insurance policy. The money I had saved and the matching funds had been moved to an IRA.
Reply
Rick, usually the insurance carrier does not take an offset for the pension until you begin taking those benefits on a monthly basis. When you start taking them then yes it is considered other income. Are you taking the pension benefits? I am not quite sure what you mean by the matching funds are your savings. If you would like to discuss in more detail you can contact my office for a free consultation.
