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.”