MetLife LTD and SSDI usually reduce each other dollar-for-dollar

When you receive both MetLife long-term disability (LTD) and Social Security Disability Insurance (SSDI), MetLife typically reduces your LTD payment by the amount you receive from SSDI. This is called an offset or coordination of benefits. The result is that your total monthly income from both programs combined stays roughly the same as what MetLife would have paid alone — you do not receive the full amount from each program.

The exact offset depends on your MetLife plan language. Some plans offset dollar-for-dollar. Others offset only a percentage, or only after you reach a certain age (often 65). A few older plans have no offset at all, though these are rare. You need to read your actual plan document to know which rule applies to you, because MetLife's standard practice is not the same as your employer's contract with MetLife.

The timing also matters. MetLife usually does not know you have been awarded SSDI until you tell them or until Social Security notifies them. Until that happens, MetLife may continue paying you the full LTD amount. Once MetLife learns of your SSDI award, they will recalculate your benefit and may ask you to repay the difference between what they paid and what they should have paid under the offset rule.

Key Takeaways

  • MetLife LTD plans almost always reduce your monthly payment by the amount you receive from SSDI, so your total from both programs is less than MetLife alone would pay.
  • The offset rule is written into your specific plan document, not MetLife's general policy, so you must check your Summary Plan Description or policy to know the exact reduction.
  • MetLife does not automatically learn about your SSDI award, so you should notify them in writing once Social Security approves you to avoid overpayment and recalculation later.
  • If MetLife overpaid you before learning of your SSDI award, they will typically demand repayment of the difference, though some plans allow them to offset future payments instead.
  • At age 65, some MetLife plans stop the offset or change how it works, so your payment structure may shift when you reach full retirement age.

How to find your plan's offset rule

Your MetLife plan document is the only source of truth for how your specific offset works. This document is usually called the Summary Plan Description (SPD) or the Plan Document. Your employer's human resources or benefits department should have a copy, or you can request one from MetLife directly by calling the number on your LTD payment stub.

Look for sections titled "Coordination of Benefits," "Offset," "Other Income," or "Social Security." The language will specify whether MetLife reduces your payment by 100 percent of your SSDI, a percentage of it, or not at all. It will also say whether the offset applies before or after you turn 65, and whether it includes other disability income sources like workers' compensation or Veterans benefits.

If you cannot locate your plan document or the language is unclear, ask MetLife in writing to explain how your SSDI award will affect your LTD payment. Request a written response that cites the specific plan section. This creates a record if there is a dispute later about how much you should have been paid.

What happens when MetLife learns about your SSDI award

Once MetLife receives notice of your SSDI award — either from you, from Social Security, or from a third-party verification service — they will recalculate your LTD benefit. If you have been receiving the full LTD amount while waiting for your SSDI decision, MetLife will now reduce future payments by your SSDI amount. They will also calculate how much they overpaid you during the months between your LTD start date and your SSDI effective date.

MetLife will typically send you a letter explaining the recalculation, the new monthly amount, and the total overpayment. They will then ask you to repay the overpayment in a lump sum or allow them to deduct it from future LTD payments. Some plans allow MetLife to recover the overpayment only through future deductions, not a lump-sum demand. Check your plan document to see which method applies.

If you disagree with MetLife's calculation of the overpayment or the offset itself, you have the right to appeal under the plan's dispute process. This is separate from any appeal you might file with Social Security. MetLife must provide you with the appeal procedure in writing, usually in the same letter that notifies you of the recalculation.

The SSDI effective date and retroactive payments

Social Security assigns an established onset of disability (EOD) date, which is the date your disability is deemed to have begun. This is not always the date you applied or the date you were approved. If Social Security approves you and sets your EOD to a date before your approval, you will receive a retroactive payment — a lump sum covering all the months from your EOD to your approval.

MetLife's offset calculation depends on which date they use: your SSDI approval date or your EOD. Some plans offset based on your SSDI effective date (the first month you can receive SSDI), while others use your approval date. This difference can mean MetLife claims you owe an overpayment for months you did not actually receive SSDI yet.

When you notify MetLife of your SSDI award, include a copy of your Social Security award letter, which shows your EOD, your effective date, and your monthly benefit amount. This prevents MetLife from using the wrong date to calculate the offset. If MetLife calculates the overpayment using your approval date instead of your effective date, you can dispute it and ask them to recalculate using the correct date from your award letter.

Overpayment recovery and your rights

MetLife's right to recover an overpayment is limited by your plan document and by federal law. Under the Employee Retirement Income Security Act (ERISA), MetLife must follow the plan's terms exactly. If your plan says MetLife can recover overpayments only through future benefit deductions, they cannot demand a lump-sum repayment. If your plan allows either method, MetLife usually chooses the method that recovers the money fastest.

You have the right to request a payment arrangement if MetLife demands a lump sum. Some people negotiate to have the overpayment deducted from future LTD payments over several months instead of all at once. MetLife is not required to agree, but it does not hurt to ask in writing. Keep a copy of your request and any response.

If you believe MetLife calculated the overpayment incorrectly, you can file a formal appeal with MetLife's plan administrator (usually your employer's benefits department) before pursuing any external remedy. The appeal must be filed within the timeframe stated in your plan document, typically 60 days from the date of the overpayment notice.

What changes at age 65

Many MetLife LTD plans change how they handle offsets when you reach age 65 or your full retirement age. Some plans stop offsetting SSDI entirely at that age. Others switch to offsetting only a percentage of your SSDI, or they offset only certain types of Social Security income (like retirement benefits) but not SSDI. A few plans increase the offset at 65.

You should receive a notice from MetLife before your 65th birthday explaining how your benefit will change. If you do not receive one, contact MetLife and ask them to clarify what will happen to your payment at 65. This is important because your total monthly income may increase significantly if the offset stops or reduces.

At 65, you also become may be able to access for Medicare, which may change your out-of-pocket costs for healthcare. Some people find that the increase in LTD payment at 65 is offset by higher Medicare premiums or the loss of Medicaid coverage, so calculate your net income change before assuming you will be better off.

Notifying MetLife and Social Security

You should notify MetLife of your SSDI award in writing as soon as you receive your award letter from Social Security. Send the notice to the address on your LTD payment stub, marked for the attention of the claims department. Include a copy of your award letter, which shows your monthly benefit amount and your effective date. Keep a copy of your letter and request a return receipt so you have proof MetLife received it.

You do not need to notify Social Security about your MetLife LTD payments. Social Security already knows about LTD when they calculate your SSDI benefit — they reduce your SSDI by any LTD you receive, so the offset works both ways. However, if your LTD payment changes (because of the offset or for any other reason), you should report the change to Social Security within 30 days, because it may affect your benefit amount or your may be able to access for other programs like Medicaid.

Keep all correspondence with both MetLife and Social Security in a file. If there is ever a dispute about how much you should have been paid, these documents will be your evidence of what you reported and when.

Frequently Asked Questions

Can I receive the full amount from both MetLife and SSDI without an offset?

Only if your specific MetLife plan has no offset clause, which is rare. Most plans reduce your LTD by your SSDI amount. Check your Summary Plan Description to know for certain. If your plan has no offset, MetLife will still reduce your SSDI by your LTD amount, so you do not receive the full amount from both programs — Social Security does the offsetting instead.

What if MetLife demands repayment but I already spent the overpaid money?

You can request a payment plan instead of a lump sum, though MetLife is not required to agree. You can also appeal the overpayment amount if you believe MetLife calculated it incorrectly. If you cannot pay, ask MetLife in writing whether they will accept deductions from future LTD payments. Ignoring the demand will not make it go away and may result in legal action.

Does the offset explore to my spouse or dependents?

No. The offset applies only to your own LTD benefit. If your spouse or dependents receive benefits based on your SSDI record, those benefits are not reduced by your MetLife LTD. However, your household's total SSDI may be reduced if your SSDI award triggers a family maximum, which limits total benefits paid to your family.

What if I disagree with how MetLife calculated the offset?

Request a written explanation from MetLife that cites the specific plan language and shows the math. If you still disagree, file a formal appeal with your employer's benefits department or plan administrator within the important date stated in your plan document. You can also consult a disability attorney, though most offset disputes are resolved through the plan's appeal process.

Will my MetLife payment increase if my SSDI increases?

No. If your SSDI increases, MetLife will reduce your LTD by the same amount, so your total payment stays the same. The offset works in both directions: if SSDI goes up, LTD goes down by the same amount. This is why it is important to understand your plan's offset rule before you receive your SSDI award.