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LTD benfits & SSD Reimbursement

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hopej

Junior Member
State of Arizona. Looking for help for my mother-in-law who was found totally disabled in 2000, and qualified for LTD benfits from her employer. She was told to apply for SSD, and was also found disabled. She has continually accepted payments from both since the onset, without the LTD company or SSD knowing, and now tells me the LTD Co, wants the status of her SSD claim, so they might be reimbursed for whatever SSD will pay, or has paid. I guess there is a certain set amount, and LTD pays their portion, and SSD the other. Well, now, she hasn't the funds to pay the LTD company, and she wants help to figure this out. I am scared to death for her, and told her I would try to find a direction for her to go. So, what can anyone do to her? She has equity in her small home, but nothing else really, except an older car which is ready for the junk yard. Nothing else. They are still sending her monthly checks, and she gets direct deposit from SSD, and is still totally disabled. What can I tell her to do to get out of this mess. It is affecting her badly, and I cannot alleviate the fears because she is afraid if I go to a lawyer, they will tell someone. I know they won't, but she is allowing me to try this to get some information. She is convinced she will go to jail and at this point, I really cannot tell her she won't. I worked in a law office for a number of years some time ago, but not in this area of law, so am at a total loss. Please help us.
 


somarco

Member
Virtually every LTD plan has a SSDI offset. A portion of the monies paid out in the early days of the LTD benefit is actually an advance on future SSDI benefits.

Read the policy.

Since she was awarded SSDI, the carrier is entitled to a refund. If she cannot pay, her future LTD benefits will be reduced (or eliminated) until such time as the carrier is made whole.

Read the policy.
 

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