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Can I Take Out My Retirement Benefits While Being Paid LTD Benefits?

While the answer to this question is yes, the consequences of doing so depend on the disability insurance contract.

This is because long-term disability companies can reduce your benefits and charge you with an overpayment if they have been paying you the gross benefit, when you take out your retirement.

If you are receiving long-term disability insurance payments under a group plan, your disability insurance policy likely has a term that allows for the reduction of your benefit payments on a dollar-to-dollar basis by the amount you pull from your retirement benefits. The amount by which your long-term disability benefit is reduced is called an offset. This seems unfair, however, disability insurance companies will note that offsets in the policies help to keep monthly premiums low for employers and employees alike.

Typically, disability insurance companies deal with overpayment issues one of three ways:

  • Require immediate reimbursement of the full overpayment;
  • Agree to a payment plan, reducing your monthly LTD benefit until the overpayment is satisfied;
  • Withhold the entirety of your monthly LTD benefit until the overpayment is satisfied.

Sometimes the disability insurance policy requires that you sign a reimbursement agreement, stating that you will repay any overpayment due to an offset under the contract of other income. The disability insurance policy, however, does not always require you to sign this document. That’s why it is important to contact a knowledgeable disability insurance attorney.

Over the years, the experienced disability insurance attorneys at Dabdoub Law Firm have successfully dealt with overpayments and other issues arising under a long-term disability claim.

Help from a Lawyer with Expertise in Disability Insurance

Disability insurance law is complex. Hiring an experienced disability attorney is important. Because all disability lawyers at this law firm focus on disability insurance claims, we have expertise in disability insurance law.

That means have:

  1. Experience with every major disability insurance company;

  2. A proven track record of success by winning major disability lawsuits;

  3. Recovered millions of dollars in disability benefits for clients;


And, we never charge fees or costs unless our clients get paid.

The firm can help at any stage of your disability insurance claim, including:

Because federal law applies to most disability insurance claims, our lawyers are able to represent clients across the country.

Call to speak with an experienced disability attorney. Consultations are free.