This is a question for anyone who has been laid off whilst receiving disability benefits through short or long term disability insurance, or, perhaps a labor attorney.

If a person is laid off during an active disability claim period, must s/he report any severance pay to the disability insurer? If the payment is reported, will benefits be reduced?

Thanks in advance for your knowledgeable input.

Laid off, when on disability?

If you are on disability you are not working, if you are not working, you can't be laid off till you return to work

Can you explain this better

Hi, Fr. Chuck. Thanks for taking a stab at this one.

I am on a short term disability leave from my position. While on that leave, the position itself was terminated. That leaves me severed from the position. The company has offered me a lump sum severance. The disability insurerer requires that I report weekly income and they define income sources. One of the sources they define - the only one that is close - is salary continuance. However, my understanding is that a lump sum severance is not a salary continuance, it is more like a bonus. Bonus payments are specifically excluded from reporting requirements. I just want to make sure that I'm not splitting hairs at the risk of losing my benefits.