My LTD policy states:
“After benefits have been payable for 3 years and with each subsequent anniversary of the commencement of disability payments, you are eligible for a cost of living adjustment in your disability benefit.”
Does this mean the COA increase would for example kick in after 3 full years on LTD, so the start of the 4th year on LTD and then is seems like there will be a COA increase after year after? If it started LTD in May 2020, when would I receive my first COA increase? My COA maximum increase is 3 percent a year?
I know I could ask my case manager but I try to avoid communication with him anyways so hoping somebody would provide me answer.
I would interpret “and with” to mean the increased payments will start on your third anniversary and increase again each year after that. Otherwise that would be a very clunky way to say starting on the fourth anniversary.
Yeah agree, I reread it (slowly this time)…and changed my mind. It’s likely means you’ll get your increase on your 3rd anniversary and everysubsequent anniversary after that.
Yep.
The “basket of goods” they use to calculate the COL is stupid IMO.
3 out of 5 COLA was under 2% the last five years.
I except the next many years will be over 2%.
This could also be read as “after you have received 3 years of payments”. So in a situation like this it will kick once the person has been paid for 3 years. I can’t say for sure in your situation without seeing the full context of the policy, but that is what it looks like based on the clause you quoted.
David Brannen
Disability Lawyer with Resolute Legal
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Hello, I have been on my permanent LTD for 14 years now and I was on the staff benefits not the hourly employees benefits and I distinctly remember there being a cost of living adjustment in the contract I signed but when I ask my company for contract they send me brochures of company benefits but not the staff program. I know there was a cola stipulation in there. Should I get a lawyer, I did the math and at 3% a year for going on 14 years now is a lot of money they have been screwing me for. Do I need to talk to you guys? I think so.
@DenisR1970 Do you mean that your employment contract contained a COLA benefit for your salary or wage, OR, do you mean you saw a COLA adjustment for your LTD benefit? I’m sort of curious, maybe @David_Brannen could let us know, if your peers have been getting cost of living adjustments and thus the job you had pays more over time, should LTD recalculate periodically due to this, or does the LTD contract itself need to have the COLA adjustment?
Yes exactly, the cola should have been in effect for the last 14 years that should have been paid yet it isn’t. I did some number crunching and that like $200,000 or so. There are also other peculiarities that I’d like to discuss, I’m sure once you hear them you’ll find out they you will agree that These things should be brought to light. Do you guys think you can help me? Please let me know. Thankyou for responding.
Sorry, I forgot to answer your question. Kim on permanent disability and I’ve asked them for the contract and they won’t send it to me. They are being real shady and when I asked for the contract I got a call from some big wig after I called my old lawyer and I didn’t even talk to them yet so my old lawyer must have been in contact with them. I really need help. I’m only getting 58,000 when aI should be getting more. I specifically remember a cola in the contract. I was management and not hourly. I also think my old lawyer did not do right by me. Please, I need someone’s help, I’m barely making ends meet and things are getting more expensive by the day. Thank you for reaching out, I appreciate it!
