Disability Plan Evaluation Calculator: Offset Tool
Author: Assurant Employee Benefits
Published: 2012/04/05 - Updated: 2026/01/18
Publication Type: Conversion, Calculation
Category Topic: Calculators - Charts - Related Publications
Page Content: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This information provides an interactive calculator developed by Assurant Employee Benefits that helps brokers, employers, and individuals with disabilities understand how different variables affect disability benefit payments. The tool's authority stems from its development by a major insurance provider specializing in employee benefits, and it addresses a critical knowledge gap in disability insurance planning by breaking down complex calculations into three accessible modules: return-to-work offsets, Social Security disability offsets, and indexing methods. People with disabilities, seniors planning for potential impairment, and HR professionals benefit from this resource because it translates intricate insurance formulas into visual comparisons, making it easier to predict actual benefit amounts when accounting for partial work earnings and government assistance programs like SSDI - calculations that can significantly impact long-term financial security for the more than five percent of U.S. workers receiving disability benefits - Disabled World (DW).
Introduction
What is Social Security Offset?
If you receive a pension from a U.S. federal, state or local government based on work where you did not pay Social Security taxes, your Social Security spouse's or widow's or widower's benefits may be reduced. This offset is referred to as the Government Pension Offset, or GPO. The GPO will reduce the amount of your Social Security spouse's, widow's or widower's benefits by two-thirds of the amount of your government pension.
Main Content
With a disabling injury occurring once every second in the U.S., disability insurance is an increasingly important tool to help people maintain their fiscal security. However, individual payments can vary depending on their employer's disability plan. To help make disability calculations easier to understand, Assurant Employee Benefits developed the industry's first online tools that compare how the indexing methods and offsets of various plans affect disability benefits.
"Contrary to popular belief, all disability plans are not created equal," said Scott Horstman, disability product manager with Assurant Employee Benefits.
"In fact, they can vary depending on indexing, or how an individual qualifies for benefits, and offsets like Social Security and return to work earnings, which determine the amount of benefit they are eligible to receive. This tool will help brokers and employers evaluate the different options and how they impact the payout a disabled employee will receive from their disability plan, which can impact their level of income protection for the long term."
The new offset and indexing tool includes three user-friendly modules, including return to work offsets, social security offsets and indexing. Each module includes email functionality so brokers and employers can easily share the information with others.
Return to Work Offsets Tool
Whether for a few days or few years, employees can return to work on a part-time basis before they fully recover from their disability.
The method used to integrate those partial earnings in the long-term disability contract will affect the net benefit that is paid.
The Return to Work Offsets tool compares various methods to provide a better idea of what disability plans will pay.
Social Security Offsets Tool
According to the Social Security Administration, 8.3 million disabled wage earners, or more than five percent of U.S. workers, were receiving Social Security Disability (SSDI) benefits at the end of March 2011.
Brokers and employers can test the impact of SSDI benefits on the net disability benefit payable using the Social Security Offsets tool, which provides a helpful visual comparison.
Indexing Tool
Long-term disability insurance provides coverage for an extended period in the event of a disability, yet disability contracts can allow an employee to work on a partial basis and continue to qualify for benefits if their earnings are below a certain amount.
The higher the earnings threshold, the greater the likelihood that they will continue to qualify for benefits.
The Indexing tool helps compare how the indexing rate affects a claimant's ability to continue to qualify for benefits.
"Disability insurance can be complicated, yet is extremely important to a disabled individual's livelihood," Horstman said.
"Employees primarily want to know if their claim will be approved, how much they will receive and for how long. This tool helps answer those questions and simplify disability plans before purchase so brokers and employers can make informed decisions about the best disability plan features to meet their needs and those of their employees."
Insights, Analysis, and Developments
Editorial Note: The complexity of disability insurance often leaves beneficiaries uncertain about their actual coverage until they file a claim, making this calculator a valuable planning tool for anyone evaluating policy options. With disabling injuries occurring at startling frequency and disability plans varying widely in their treatment of offsets and indexing, having access to transparent calculation methods before purchasing coverage represents a significant step toward informed decision-making. Whether you're recovering from an injury and considering part-time work, awaiting Social Security approval, or simply trying to understand your policy's fine print, these visualization tools demystify the arithmetic that determines your financial safety net during what may be the most vulnerable period of your life - Disabled World (DW).Attribution/Source(s): This quality-reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally authored by Assurant Employee Benefits and published on 2012/04/05, this content may have been edited for style, clarity, or brevity.