Legal Question in Social Security Law in Florida

Employer LTD Payback when Social Security Benefits have been awarded.

I have been on disability through my employer since April, 2002. I was initially having to use all my sickleave, vacation and then went on short-term disability. After six months I was approved for LTD which began in October, 2002. I was requested by the insurance company that made my ltd payments each month that if I was awarded Social Security disability, that I would pay the insurance company back.

Since I have been on disability, I have lost my car, lost my credit and almost lost my house. I want and need to file bankruptcy to stop the harassing calls.

My question is it a law that I pay back the insurance company with my lump sum settlement from social security?

Thank you for any help


Asked on 11/21/03, 11:11 am

1 Answer from Attorneys
Michael Tobin Michael M. Tobin, P.A.

Re: Employer LTD Payback when Social Security Benefits have been awarded.

Yes. The usual language in disability income policies require a setoff for Social Security benefits. They will it as a lump sum (less atty's fees). My experience is that the money is already spent to pay off credit cards and other debts. Where the client does pay the lump sum, the disability company will soon thereafter cut off benefits on trumped up medicals saying they are no longer disabled from any occupation. The only alternative they have for actually collecting is to use the offset to reduce future benefits which is best done on a pro rata basis over the work life expectancy. They can't touch your SS money. Call me if you want an ERISA lawyer in your area familiar with this issue. 305-804-5475

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Answered on 11/26/03, 11:21 am


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