Severence as income to LTD


#1

My policy states that LTD is entitled to offset any additional income including a severance package. My severance is calculated in terms of the 29 years that I worked prior to receiving LTD. I think it is one week of income for every year I worked. I can’t get my head around this - just seems unfair.
If I get a severance package which I am told I will (via HR) if I don’t return to work within a certain time and my employer terminates me. Can I just cancel my LTD at that time and then take my work pension afterwards or is the insurance company still entitled to that money?


#2

Does your policy specifically say they can offset severance?
At most I think they should only get severance for the years you were getting LTD.

Sounds reasonable but ask a lawyer.