Short answer: Yes. When SSDI plus workers’ comp, or certain public disability benefits, exceeds the higher of 80% of the worker’s average current earnings or the total Social Security family benefit, SSDI is reduced by the excess. Private LTD does not trigger this reduction.
Under 42 U.S.C. 424a, if someone is entitled to SSDI and also to periodic disability benefits under a workers’ compensation law, or under certain other federal, state or local disability laws or plans, Social Security reduces its benefits. The reduction is the amount by which the combined benefits exceed the higher of 80% of the person’s average current earnings or the total Social Security benefit before reduction, and it cannot go below zero.
VA benefits under title 38 and needs-based assistance are excluded from this offset. Private insurance, including employer group LTD, is not among the benefits listed.
The order matters. Workers’ comp can reduce SSDI, and the group LTD policy then usually reduces its own benefit by both. A claimant collecting all three may find the LTD check at or near the policy’s minimum benefit.