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

jay123

New Member
8
I have a Cigna ltd policy (from work) which I am collecting on. It is offset by my SSDI. I was planning on using it until I collect my normal pension at age 65. Can they force me to start collecting my pension now (so they can offset that) since I am eligible for it before 65? I can collect my pension because I am over 50 and had 23 years in the company, I am 57.
 
This might sound like a silly question, but have you referred to your policy?
 
You can get a copy of the outline of coverage from your company HR department or from Cigna. I would suggest just calling Cigna, the HR department most likely does not have it handy if they are like most.


You need to consult both the DI policy as well as the Pension Plans Explanation of Benefits.


If you receive your pension and retire, the DI will cease payments most likely (99% sure).


The real question is if the Pension Plan allows for them to force you to take early benefits while on disability.
And only the Pension Documents can answer that.


Is this just all hypothetical? Are they forcing you into early retirement?
 
I just got a cc of a letter in the mail from Cigna to my old employer asking if I was eligible for a pension. Technically I could start collecting, but financial wise I wasn't planning on doing it until my ltd and ssdi run out at 65.
I am totally screwed financially for after 65 if they force me to take it now.
 
I just got a cc of a letter in the mail from Cigna to my old employer asking if I was eligible for a pension. Technically I could start collecting, but financial wise I wasn't planning on doing it until my ltd and ssdi run out at 65.
I am totally screwed financially for after 65 if they force me to take it now.

The DI Policy can not technically force you into early retirement. Nor can it force your employer to force you into early retirement.

But; the DI policy most likely has a clause that states that "if you are of retirement age, or eligible for your company retirement pension benefits, the policy will cease to provide benefits".


Some DI policies have more loose wording than others. So it all really just depends on the wording of the DI contract. Some are better than others.
Unfortunately, a lot of work based DI policies have pretty poor contract language. And it makes it easier for them not to, or to stop paying benefits.

If you get the actual policy post it and we can tell you more.

But DI is meant to replace your income during your working years. Some DI policies have a very broad definition of working years, others dont.
It is possible they see the ability to take your pension as you not technically having to work anymore.

And yes, I realize that at your age the pension payments are going to be a good bit lower than at age 65.
So; that might be your one way to contest the decision if they do end up cutting you off.
If the pension benefit is substantially lower than your current income, then you could contest it. Idk what your chances would be contesting it. Probably not great. It all depends on the contract language.

But here is the thing. Just call Cigna and ask them about the letter and ask for a copy of the policy.
It is a real possibility that if the pension amount is a good but lower than your current income they will do nothing. But they have no way of knowing that without contacting your employer.
 
I think what they will do is 'offset' my di with the pension, so financially wise I won't suffer until 65. At that point my pension will be $400 leass per month due to starting it now vs. at age 65.
I found the contract, it just says the payment will be reduced by the pension amount. The question is, my 'normal' pension starts at age 65, can they force me to apply for an 'early' pension?
 
I think what they will do is 'offset' my di with the pension, so financially wise I won't suffer until 65. At that point my pension will be $400 leass per month due to starting it now vs. at age 65.
I found the contract, it just says the payment will be reduced by the pension amount. The question is, my 'normal' pension starts at age 65, can they force me to apply for an 'early' pension?

They cannot force you to apply for an early pension. The insurance company has no direct legal authority to do so.

But they can still reduce your benefits by the amount that is currently available to you, even if you dont take the pension now.
 
So basically in your opinion I'm screwed. Great, all my financial planning out the window. Really feel great now.
 
Time to lawyer up. We really can't help you that much as we don't have access to your plan documents, we don't know if they can "force" you into early retirement as much as "offer" you early retirement.

It is not a certain that the DI carrier would reduce their payment on rejecting an offer. Without seeing the wording as I understand it they could if you accept, but is there any section that deals with non acceptance?

But really, contact a lawyer. We as agents, make lousy attorneys.
 
Back
Top