Elliot v. Elliot, Leibl, & Snyder, LLP Long-Term Disability Plan

MEMORANDUM

David Scott Elliot became permanently disabled and began receiving benefits under the Elliot, Leibl & Snyder, LLP, Long-Term Disability Plan (“Plan”) in December 1999. Elliot was eligible to receive the maximum benefit payable— $10,000 per month — exclusive of annual cost of living adjustments (“COLA”). COLA adjustments occurred annually on the anniversary date of Elliot’s benefit eligibility, December 20th. The amount payable to Elliot in the subsequent year was determined by multiplying a COLA “factor” by the benefit then payable to Elliot.

Elliot applied for Social Security Disability (“SSD”) benefits from the Social Security Administration on March 12, 2004. In June 2006, he received an award of SSD benefits retroactive to February 2003. The award totaled $72,954.50, for the period from February 2003 through April 2006. Following this lump-sum retroactive award from SSD, USIC recalculated the benefits it had conferred upon Elliot from February 2003 onwards. This recalculation resulted in a permanent reduction of Elliot’s benefits going forward and the determination that USIC was entitled to clawback $79,384.15 in benefits paid to Elliot between 2003 and 2006. This…