How Do Social Security Disability Benefits Affect Claims for ERISA Disability Benefits
Many policies contain "offset" provisions with respect to other income and benefits obtained by claimants, including Social Security disability benefits. An offset generally works to reduce a claimant's private disability benefits by the amount of Social Security benefits the claimant (and perhaps other family members) receive due to the claimant's disability. Because offset provisions vary from policy to policy, there is no one rule that applies to all of them. Each policy or plan must be reviewed to see how it applies to a particular claim. I will be writing about Social Security offsets in more detail in upcoming entries.
Interestingly, the award of Social Security disability benefits may actually help a claimant recover disability benefits from an insurance carrier. Especially in ERISA cases, the award of Social Security disability benefits is relevant evidence of disability. When awarding private disability benefits, many courts cite the federal government's finding of disability under the Social Security system. For this and other reasons, it is often prudent to seek disability benefits from the Social Security Administration.