MMC Benefits Handbook
Other Sources of Disability Benefits
What impact does receiving other disability income benefits have on my basic long term disability plan benefit?
Your Basic Long Term Disability Plan benefit is reduced by any disability income you receive from other sources (offset income). Note that even if you are receiving disability income or benefits from other sources, you will not be eligible for Long Term Disability benefits unless this Plan's requirements are met.
Offset income may include but is not limited to the following sources of income:
  • Social Security disability income
  • state disability benefits
  • Workers' Compensation, benefits under occupational disease, or similar legislation
  • income replacement payments
  • another employer's disability income payment
  • 60% of a rehabilitative benefit if you return to work part-time.
Other Disability Income
Which sources of disability income will offset my Basic Long Term Disability Plan benefit?
The offset income would include, but not be limited to:
Disability benefit
Impact on long term disability benefits
Social Security
Your disability benefit will be reduced by the amount of benefits you receive from Social Security disability income. If you are eligible for a Social Security disability benefit but do not apply for it, your long term disability benefits will be reduced by the amount of Social Security benefits you would have been paid if you had applied to Social Security. The offset will be reimbursed if you provide proof from Social Security that your request for benefits has been denied at the final level of your application.
State disability benefits
Your benefit will be reduced by the amount of state disability benefits you receive.
Workers' Compensation
Your long term disability benefit will be reduced by the amount of Workers' Compensation benefits you receive.
Retirement benefit
Your benefit will be reduced by any retirement income you receive from the Company's US Retirement Program.
Offset Example
How does the offset affect my disability benefit?
This example shows how an offset affects your disability benefit:
Assume your disability plan payment is $1,500 per month, and you receive $500 per month from another disability income source. If the other disability income source, like Social Security, is an offset to your benefit, you would receive a long term disability benefit of $1,000 per month. The $1,000 long term disability benefit combined with the $500 Social Security benefit still totals $1,500 per month.
Note: Your Basic Long Term Disability Plan benefit is not reduced (offset income) by private disability insurance plan income payments.