Question
Does Prudential have to give me credit for attorney fees? Can they require me to pay them my COLA benefits?
I have been on LTD through Prudential since August of 2012 and have been approved to August of 2014. I just received my approval from SSDI after my 3rd appeal. No award letter yet but, I will get back pay to August 2012. I hired my own attorney. I was never offered the service from Prudential or even knew they worked with attorneys and offer a credit for those fees if awarded back pay. When I informed my case manager that I would be receiving back pay and that they are required to credit my attorneys fees he didn’t know anything about that. I, of course, have asked for a written estimate of what is being taken out of my back pay bit, how do I ensure they give me that credit? I’m afraid they are going to charge me for those fees and in that case I will owe them more than my backpay. I also asked about COLA and he said that would be taken out as well. I thought they could not do that. I feel like I know more than he does about this!
Answer
Nikki, When you receive the Award Letter from the SSA send it to Prudential. The claims person seems ignorant to your question or has misunderstood it. Prudential’s right to repayment of any overpayment will only be based on the base monthly benefit amount received (before any applicable COLA increases) minus any fee awarded to your attorney. You should not be required to payback the money awarded to your attorney, or any increase amount on account of COLA.
