Can You Be Forced to Accept Early Pension Benes While on Ltd?

[scagnt83]

I have a progressive disease that I worked through for many years. I did consult a planner before I needed disability (CFA) .
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Im sorry to hear all this.

While this does not necessarily help you now; the CFA exam has the lowest focus on Insurance out of all of the major "Financial Planning" designations.

Most people who get their CFA are looking to be a trader or analyst on wall street.
There are some that go into personal planning with a CFA. And it does generally prepare you for that. But, the CFP designation goes into Insurance knowledge more than the CFA does. ChFC probably has the most Insurance related studying.
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I did consult a planner before I needed disability (CFA) . We all assumed since the policy said until age 65 that they wouldn't request us to do the early retirement option. We did a very thorough job planning this taking everything we could think of into account.

In the end, I thought we researched it well but never factored in the early retirement 'option', because I never planned to use it and didn't think I would be forced into it. It's not specifically mentioned in my policy, 'pension' is the only thing mentioned. I have been eligible for the early retirement option for 3 years but it was never brought up. I knew about offsets (my ssdi is an offset on the policy).

It isnt really about them "requesting you to do early retirement".


DI is like Car Insurance in a way.
Some polices are designed to provide minimum coverage, some provide total coverage, and then there are a lot of levels of coverage in between.
There are Cadillac plans and then there are the Pinto plans. The Cadillac Plans cost 2-3 times what the Pinto plans cost.
Im not saying you have a pinto, but it certainly is not a cadillac.


I looked at one of my resources and found a Cigna group DI contract.
It might not be exactly like yours, but it is probably close.

Other Income Benefits
If Disability Benefits are payable to you under this Policy, you may be eligible for benefits from Other Income Benefits. If so, we may reduce the Disability Benefits by the amount of such Other Income Benefits.


3. any Retirement Plan benefits funded by the Employer. "Retirement Plan" means any defined benefit or defined contribution plan sponsored or funded by the Employer.

This is where you need someone who actually has insurance experience. To understand statements such as this.

Assuming your contract language is the same as above:
If your CFA read that and did not say anything then they made a serious error.

When an Insurance Company says "we may", it means "we will".
Especially when it concerns Disability Benefit offsets. That is insurance contracts 101. (legal contracts 101 really)


Again. You dont have to take early retirement. They have no legal authority to force you. But they do have the legal authority to offset your benefits by any available income sources.
It doesnt matter if you use them or not. The Policy is still offset by whatever amount you could take as income.


The Defined Benefits (Pension) clause falls under the same section the SSDI falls under.
Cigna didnt "force" you to take ssdi. But they would have offset your benefits either way. Same as the Pension.


The reason they havent said anything yet even though you have been eligible, is because of the reason stated in the previous post. They only audit plans every few years. It is probably time for your plan to be audited and now this has come up.
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I will call cigna monday, and if needed I will call the state oic, two good ideas.

Calling Cigna is really your only option.

With all due respect to Peter's suggestion; the oic will just tell you that the company must abide by the contract.

If the company violates the contract then there is something to call the oic about.

But the oic is an advocate for you and they can tell you and give you links/brochures about your rights as a consumer.

So until you have the contract in front of you and a clear understanding of what it says. Along with a decision or a notice of review, from Cigna. There isnt much to talk to the OIC about.



If you want to be upset at someone I would start with your financial planner who didnt catch this very glaring problem. If I were in your shoes I would write a Letter of Demand for damages caused by his Error.
(can anyone here say E&O??)

Of course that is ASSUMING, what we are currently ASSUMING, is the correct ASSUMPTION.


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I met the end of my working years about 5 years ago, I didn't just go on di.

I dont think anyone here thinks you dont deserve your benefits.

Situations like yours are the reason why most of us do what we do.

Just be glad you have some type of coverage.
I have a close friend who was diagnosed with stage 3 brain cancer 2 weeks before he planned to buy a DI policy from me...