Disability Benefit Reduced Because of Dependent Benefit

[carsonius]

What is the name of your state (only U.S. law)? PA

Hi Everyone

I've looked around and can't find a discussion of my issue, so here goes.

I've been permanently disabled with Multiple Sclerosis since 1/2000. My employer had a long term disability policy with UNUM that I qualified for, and have been collecting since then.

UNUM made me apply for Social Security Disability shortly after they started paying me and I've been receiving those benefits since then as well. They, of course, reduced their benefit to me by the amount I'm collecting under SSD. I was okay with that.

Much to our surprise after 23 years of marriage, my wife and I had a son in 2004. A few months after his birth my sister-in-law commented that my son should qualify for SSD since I'm disabled. This never occurred to us but, she was right and he's been collecting SSD since 2004.

Since the benefits are paid under his Social Security number and are for his benefit, it never occurred to us to notify UNUM about this joyous addition to our lives. UNUM sent one of their standard "tell us all about what you've been doing" forms last month with the question about whether your spouse or child is receiving SSD.

We had an "Oh, No" moment, filled in my sons monthly benefit amount and faxed it in. I just noticed my monthly benefit has been reduced by the amount he's receiving and am anxiously awaiting a letter from UNUM demanding I send them the $50,000 my son's been paid over the last five years.

Is this right? Can they do this? This is not "my" money. It's paid under my sons Social Security number. It has strings attached to it. I can't just go and spend the money on anything I like.

Anyone have any opinions about this?

[ecmst12]

You have to read what your disability policy states about the matter.

[carsonius]

Thanks for the reply.

I don't have a copy of the policy. This was a benefit provided by my employer, and while I'm sure there's a copy of it somewhere in their legal department, I don't have a copy.

I'm sure the policy does state that my benefit will be reduced by any benefit I, or my family, receives from Social Security because of my disability. What I'm asking is whether this is legal.

My son's benefits are his, paid under his Social Security number. Granted he gets them because I'm disabled but this is between me and the federal government, not between my son and UNUM.

I'm wondering if I'm on a slippery slope here. If I had a mortgage insurance policy that would pay my mortgage if I was disabled would UNUM be entitled to that money? If I get a reduced rate bus pass because I'm disabled does UNUM want that money too? Okay, I'm starting to rant here. Sorry.

I know that anyone can put anything they like in a contract but, that doesn't mean it's legal. What I'm asking is whether it's legal for UNUM to take money from me because my son is receiving a benefit from another party.