You may have to repay part of long-term disability benefits after an SSDI award if the LTD policy offsets Social Security benefits. The repayment obligation comes from the plan or policy and applicable law, not a universal SSA rule requiring every private insurer to receive the back pay. [1]
Match the overlapping months
Compare the LTD payment ledger with the SSDI award’s entitlement and payment months. A deposit date is not necessarily the period for which benefits were awarded. Review waiting periods, minimum benefits, and whether dependent SSDI benefits are included in the policy’s offset.
Check deductions and credits
Attorney fees, estimated offsets already taken, taxes, and other adjustments can affect the insurer’s calculation under the actual policy. Do not assume the insurer may automatically collect the entire bank deposit. SSA’s approved representative-fee calculation is a separate matter. [2]
For example, a retroactive award covering twelve months does not establish twelve months of LTD overlap if the LTD policy paid for only eight of them.
Ask for an itemized demand
Obtain the policy language, summary plan description, benefit ledger, reimbursement agreement, and month-by-month calculation. Identify the appeal deadline and whether ERISA applies. Employer plans, individual policies, and governmental plans can follow different rules.
Preserve disputed funds when practicable while obtaining advice; do not sign a new repayment agreement without understanding its terms.
Read the insurer’s offset definition
The policy may define other income benefits more broadly than the claimant expects. Determine whether it includes the claimant’s SSDI, dependent awards, estimated benefits, and specified other income, and identify any permitted deductions or credits. A policy summary and the governing contract can differ in detail; obtain both rather than relying on a telephone explanation. [1]
If the insurer already reduced monthly payments by an estimated SSDI amount, include those reductions when checking the claimed overpayment. Ask how the demand treats months outside the LTD payment period and representative fees. A disagreement about the arithmetic is different from a dispute that the offset clause is enforceable at all. Follow the stated claims-review process while preserving applicable legal deadlines. Do not assume an SSA appeal or pending fee decision automatically extends the private plan’s response period. [2]
See child-support withholding from SSDI back pay and job protection during disability. An insurer’s repayment claim, support garnishment, and employment status are independent issues.
Primary sources
- Compliance Assistance – Group Health and Disability Plans Benefit Claims Procedure Regulation
- Fee Agreements
Sources checked: October 31, 2026.