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Thread: Long Term Disability and Union...

  1. #1

    Long Term Disability and Union...

    Hi CareCure Community. Hopefuly I am posting this thread in a right forum..

    In December 2013 my mom started receving $1085 - a which is 50% of her income she was receiving before disability. In October 2013, she also started reciving her retirement Social Security benefit of $586. Her total income was $1671. This week of July 2014, she received notice from the union, saying that her Long Term Disability will now be reduced by the $586 that she receives from Social Security. Furthermore, since my mom started receiving her pension from Social Security since October 2013, she must return a sum of $3974 that accumulated since than. My mom had a surgery and has one more surgery coming in August. There is no way she could support herself with such a small income( $498 ), no she can pay $3974 out of her pucket. What can you suggest? Does the union have a right to deduct her retirent benefits from the Long Term Disablity that she recieves? As we see it, Long Term Disability and Social Security retirement benefits are two different things. How can their claim her retirement benefits income and use it to their advantage?
    Thank you for your help and time.

  2. #2
    Senior Member willingtocope's Avatar
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    Unfortunately, most "long term disability" plans do include a provision that their benefit will be reduced by the amount you collect from social security. Its not just unions that do this. And, yes, if they missed it when she first started getting SS, they probably have the right to make it retroactive.

  3. #3
    Thank you for the reply..We never had to deal with this before...so I just trying to see if this is normal...and if there any workaround. Thanks!

  4. #4
    Senior Member willingtocope's Avatar
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    No guarantees, but you might check with SS. There may be some options...

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    Senior Member Oddity's Avatar
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    Quote Originally Posted by Yaroslav View Post
    Hi CareCure Community. Hopefuly I am posting this thread in a right forum..

    In December 2013 my mom started receving $1085 - a which is 50% of her income she was receiving before disability. In October 2013, she also started reciving her retirement Social Security benefit of $586. Her total income was $1671. This week of July 2014, she received notice from the union, saying that her Long Term Disability will now be reduced by the $586 that she receives from Social Security. Furthermore, since my mom started receiving her pension from Social Security since October 2013, she must return a sum of $3974 that accumulated since than. My mom had a surgery and has one more surgery coming in August. There is no way she could support herself with such a small income( $498 ), no she can pay $3974 out of her pucket. What can you suggest? Does the union have a right to deduct her retirent benefits from the Long Term Disablity that she recieves? As we see it, Long Term Disability and Social Security retirement benefits are two different things. How can their claim her retirement benefits income and use it to their advantage?
    Thank you for your help and time.

    Yes, this is the norm, for employer provided LTD benefits. It is nearly universal that the contracts between the employers and the insurance companies include an indemnity clause, meaning the disability award will only cover "actual losses", up to the limit of the policy (typically some % of pre-disability wages), and will be offset by income from any other source.

    It's worth noting, this is NOT typically true of disability insurance purchased by an individual with their taxable income. E.g. supplemental coverage to fill the gap between the 50% employer provided limit and 100% of pre-disability wages are typically exempted from this offsetting. A GOOD reason to buy this type of coverage while working. Many employers bring in companies to offer just this type of coverage, or allow employees to pay extra, post-tax, for it through their existing provider.
    "I have great faith in fools; self-confidence my friends call it." - Edgar Allen Poe

    "If you only know your side of an issue, you know nothing." -John Stuart Mill, On Liberty

    "Even what those with the greatest reputation for knowing it all claim to understand and defend are but opinions..." -Heraclitus, Fragments

  6. #6
    Thanks to everyone! This really helps me to understand!....

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