Company terminated my position during LTD as part of downsizing

[Elaine]

@Caro

I would at least ask the question, it’s something my employer has done for employees in the past.

I found a post from 2019 where David said: “I always recommend caution when trying to “structure” any type of settlement or payment with view to avoiding taxes or LTD offsets”.

Separation package because of merger / no job for me

The answers to your questions will depend on two things: 1) The specific LTD Benefits offset provisions in your LTD policy and 2) the essential nature of the payments received from the employer. The only thing I can say in general, is that insurers are normally concerned with gross payments, rather than net payments. But this depends on whether your LTD benefits are taxable as well. Again, this will turn on the wording (or lack thereof) in your LTD policy. I always recommend caution when tryin…