Question
Can SunLife offset dependent social security benefits received on account of my wife's disability?
My wife, through her employer, started receiving LTD 6 months after applying. She received these benefits for 2 years when Sun Life denied extending her benefits, despite her appeals. Shortly after her denial, she was approved for SSDI, which was retroactive for 2 years. During that time, our son who is under 18 yrs of age, was receiving benefits from my retirement social security. When my wife’s benefits were approved, it was determined my son would receive more money off of her policy than mine, therefore, social security pro rated his benefits from the time my wife was awarded hers. Sun Life now claims her social security qualified for an overpayment issue and indicated the amount she had to pay back. Also, they said my son’s benefits qualified as an overpayment and wanted money back for that. I know they are entitled to money from my wife’s benefits, however, are they entitled to my son’s? We already have given them a check for $25,000 and have worked out a payment plan to pay off the remaining balance of $19,000.
Answer
Dominick, unfortunately, employer provided disability policies contain language that allows for the offset of dependent social security benefits received on account of your wife’s disability. That being said – it sounds like your wife’s claim has been denied to the point of bringing lawsuit. Your wife likely still has legal rights to go after Sun Life for her disability benefit. Please feel free to contact our office to discuss your wife’s claim to see how we may be able to assist in filing of a lawsuit, which if a settlement were reached could include getting the remaining balance waived.
