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How Are “Offsets” or “Overpayments” Calculated?

Here is how such offsets are typically calculated: The amount of LTD benefits is a percentage of the disabled person's pre-disability wage; this percentage varies from policy to policy, but is often around 60%. The LTD benefit is then further reduced by Social Security benefits, and other income, such as workers' compensation. If the disabled person made $24,000 per year before becoming disabled, her pre-disability income was $2000 per month. If her LTD pays 60%, her gross monthly LTD benefit would be $1,200. If she also wins her Social Security benefits, and her primary insurance amount or PIA is $900 per month, her net LTD benefits are only $300 per month. If the person is paid $1,200 per month for 24 months, and then later wins the Social Security benefits of $900 per month, the insurance company will seek to recover the $21,600 (24 x $900) the person was “overpaid.”


Seth has always been compelled to excel, whether it meant earning his Eagle Scout as a teenager, participating in theater, debate and varsity football in high school, his Rhodes Scholar candidacy in college, or opening his own law firm. He also perseveres in situations others might shy away from, whether it involves sky-diving, rappelling down a mountain, white-water rafting, participating in marathons and triathlons, writing a novel, or lecturing nationally to large audiences about the vagaries of ERISA.


Seth is committed to serving disabled individuals. He is proud of his work in prominent organizations such as the American Association for Justice (AAJ), the Tennessee Bar Association (TBA) and Hospice. Seth is past-Chair of both AAJ's & TBA's Disability Law Sections, past-President of the Chattanooga Trial Lawyers Association, a 2-time recipient of the Pro Bono Excellence Award, and a 7 year member of the Board of Directors for Hospice of Chattanooga.