Acquaintance has an LTDI policy through work and wants to know if she collects her social security retirement benefit before full retirement age, will it their be an offset on the LTDI benefit?
Can Social Security Retirement Benefits (not SSDI benefits) reduce your Long-Term Disability Benefits?
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3 responses to “Can Social Security Retirement Benefits (not SSDI benefits) reduce your Long-Term Disability Benefits?”
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Actually it’s going to depend on your work policy’s wording. Many plans have a SSDI clause that will reduce benefits if you qualify for SSDI. Disability plans group and individual will have sections that answer you question in their definition of the policy terms. So the answer may vary based on your contract language.
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The Social Security Administration will not make your friend discontinue receiving long term disability benefits just because she chose to receive Social Security retirement benefits early. However, whether there will be an offset depends on the features of her particular group plan. .
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Great question. Your friend should ask his/her benefits person at the work site about the details of the insurance contract. Typically, when someone has a qualifying disability and can’t work the policy pays the monthly benefit until age 65. There are many different forms of disability income policies – some are more liberal than others regarding the definitions of disability and they payout of benefits.
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