Facts

David Potop had a long-term disability (LTD) plan that stated that his benefits would be set-off by other income benefits, which the plan defined as "disability, retirement, or unemployment benefits required or provided for under any law of a government, such as Federal Social Security Act benefits." In addition, the plan stated that other income benefits also included benefits payable due to disability or retirement whether payable to Potop, his spouse, children, or dependents.

Potop sued Aetna Life Insurance Co. pursuant to ERISA, seeking payment of LTD benefits. Later, the parties reached a settlement as to monthly benefits, but the issue of whether Aetna could off-set Potop's benefits by the benefits Potop received from the Dept. of Social Security (DSS) for his children still remained.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that the plan did not have an off-set, DSS benefits did not constitute disability benefits, and that allowing otherwise contravened public policy.

DEFENDANT'S CONTENTIONS:
Defendant argued that the plan contained an off-set, and claimed that an off-set of disability benefits by DSS benefits was supported by legal authority.

Result

The court found in favor of the defense, holding that the plan supported an offset of DSS benefits.

Other Information

SETTLEMENT OFFICER: Keith M. Parker.