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  1. #1

    Default SSDI Dependent Offset with Ltd

    First, thanks to everyone helping to provide information here. This is an invaluable service.

    I have been receiving LTD for a couple of years. I was recently approved for SSDI and received a substantial back payment. I also ended up being approved for dependent care benefits and received a back payment for that also. My LTD company now wants me to give them most of my back payment (expected) but they also want the dependent care back payment too (not expected). In addition, I will receive 2 monthly payments (primary and dependent) from social security going forward and LTD will deduct both of those payments from what they pay, leaving them on the hook for very little.

    I assume that there is nothing that I can do about them taking the back payments. I’m sure that they have their verbiage straight. My question is if there is anything that I could do to stop them from counting the dependent benefits against me monthly? For example, could I appoint my fiancée as his payee?

    Last, I doubt that I would do this but, since I have some medical bills piling up too, could I bankrupt the overpayments?

    Thanks in advance for any information or advice that anyone can provide.

  2. #2
    Join Date
    Oct 2006
    Posts
    16,382

    Default Re: SSDI Dependent Offset with Ltd

    Quote Quoting Sharpshooter
    View Post
    First, thanks to everyone helping to provide information here. This is an invaluable service.

    I have been receiving LTD for a couple of years. I was recently approved for SSDI and received a substantial back payment. I also ended up being approved for dependent care benefits and received a back payment for that also. My LTD company now wants me to give them most of my back payment (expected) but they also want the dependent care back payment too (not expected). In addition, I will receive 2 monthly payments (primary and dependent) from social security going forward and LTD will deduct both of those payments from what they pay, leaving them on the hook for very little.

    I assume that there is nothing that I can do about them taking the back payments. I’m sure that they have their verbiage straight. My question is if there is anything that I could do to stop them from counting the dependent benefits against me monthly? For example, could I appoint my fiancée as his payee?

    Last, I doubt that I would do this but, since I have some medical bills piling up too, could I bankrupt the overpayments?

    Thanks in advance for any information or advice that anyone can provide.
    If your LTD benefits were based on you having a dependent, then they would generally be within their rights to reimbursement from back SSDI benefits for both you and your dependent.

    Beyond that, you should probably consult with a local attorney.

  3. #3

    Default Re: SSDI Dependent Offset with Ltd

    Thank you for your response. I’m fairly certain that my LTD is based on 60% of the normal gross pay that I used to receive from my employer. To my knowledge, there was never any adjustment based on dependents or anything else.

  4. #4
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,488

    Default Re: SSDI Dependent Offset with Ltd

    When you contacted the company which provides your LTD benefits and asked them about it, what did they say?

  5. #5

    Default Re: SSDI Dependent Offset with Ltd

    I haven’t contacted them. I wanted to have some idea of what they should do before I called them. At this time, I have just received a statement that the dependent back payment will count as an overpayment and they will deduct the monthly benefit from future benefits. The dependent benefit was just awarded last month, if it matters, so this is all relatively new.

    Looking at my LTD handbook, there is a list of Income they will offset, including the expected things like wages and self-employment. The closest thing to dependent benefits is listed as “Federal, state, local or private disability program payments for the same condition, excluding cost-of-living adjustments“. So there is nothing that clearly defines a dependent benefit. But, I suppose they could argue that it is a disability payment for the same condition.

  6. #6
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,488

    Default Re: SSDI Dependent Offset with Ltd

    This is what I do for a living. If you worked for my employer and you called with this question, I'm the one you'd get.

    I can't read your policy from here. But if you got your LTD benefits from my employer and you called me and asked this question, I'd still point you directly at the vendor, even if I had the policy right in front of me. They are quite used to explaining this and will have all the details of your specific situation right there. They are, bar none, the best resource you have for this question. I can assure you that offsets are universal and if you are getting SSDI, the rules of offsets are pretty much set in stone.

  7. #7

    Default Re: SSDI Dependent Offset with Ltd

    Quote Quoting cbg
    View Post
    This is what I do for a living. If you worked for my employer and you called with this question, I'm the one you'd get.

    I can't read your policy from here. But if you got your LTD benefits from my employer and you called me and asked this question, I'd still point you directly at the vendor, even if I had the policy right in front of me. They are quite used to explaining this and will have all the details of your specific situation right there. They are, bar none, the best resource you have for this question. I can assure you that offsets are universal and if you are getting SSDI, the rules of offsets are pretty much set in stone.
    Thank you for your response. Just to make sure that I understand, are you saying that I should call the LTD company or Human Resources for clarification but, most likely, they know what they are doing and these offsets are most likely correct and without recourse?

  8. #8
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,488

    Default Re: SSDI Dependent Offset with Ltd

    Call the LTD carrier. Due to privacy laws, HR is limited in what information they are allowed to see. The LTD carrier will have all the details. I have had employees call me with similar questions; I have referred them to the carrier; no one has ever come back to say that they couldn't get help there.

  9. #9

    Default Re: SSDI Dependent Offset with Ltd

    I called the LTD company today. The person that I spoke to essentially quoted the statement. Essentially, they are saying that the most that I can receive in any month is 60% of my previous gross pay. They will deduct anything that I receive from that amount and pay me the difference. They don’t seem to really care if it is a dependent care benefit.

    I live in Virginia if it matters. So back to my original questions, as information online seems to vary. Is it legal for them to take or subtract dependent care benefits? Is there anything that I can do about it, such as make my fiancé the payee for my child?

    And last, I was expecting an overpayment on my benefits and was prepared to pay that. The additional amount of overpayment for dependent benefits changes things. Could I bankrupt the overpayments made by LTD?

  10. #10
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,488

    Default Re: SSDI Dependent Offset with Ltd

    If that is the way your policy reads, then yes, it is legal for them to offset dependent care benefits.

    I won't address the other questions since they are outside my area.

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