Common use of Benefit Reductions Clause in Contracts

Benefit Reductions. a. The Monthly Benefit Amount shall be reduced by the Other Income Sources as de fined in Item 1. b. The Monthly Benefit Amount shall also be reduced to the ex tent that the sum of the Monthly Benefit Amount and Other Income Sources (as defined in Item 1) ex ceeds 70% of the Member’s Monthly Salary. c. During Residual Disability, the benefit p ayable will be the Monthly Benefit Amount reduced by the Other Income Sources multiplied by the Income Loss Percentage, subject to the limits described in b. above. When a monthly payment is less than $25.00 the frequency of payment shall be changed to th e periodic payment intervals of every other month, quarterly, semi -annually, or annually, based on the discretion of the Company. Any Other Income Sources shall be deemed received by the Member even though determination of such other benefits or income ma y not have been completed, where it is reasonable to believe that the Member would be eligible for such other benefits or income. The anticipated eligibility of Social Security benefits will not be considered if the Member follows the following guidelin es: If it is reasonable that the Member would be entitled to disability benefits under the Federal Social Security Act, the Company will require the Member to: i. apply for Social Security benefits within 30 days after receipt of written notice from the Company requesting the Member to apply for such benefits; and ii. give satisfactory proof within 45 days after receipt of the Company’s notice that the Member has applied for these benefits within the 30 day period; and iii. if the original application is denied, request reconsideration of the application for Social Security benefits, within 60 days from the date of the denial letter from the Social Security Administration; and iv. give satisfactory proof within 75 days from the date of the denial letter from the Social Security Administration that the Member has requested a reconsideration within the 60 day period; and v. if the reconsideration of the application is denied, request an appeal within 60 days of the date of the reconsideration denial letter from the Social Securit y Administration; and vi. give satisfactory proof within 75 days from the date of the reconsideration denial letter from the Social Security Administration that the Member has requested an appeal within the 60 day period; and vii. an agreement, signed by the Member , that will reimburse the Company for ex cess benefits received if Social Security benefits are subsequently awarded in connection with the Total Disability or Residual Disability. The amount of such reimbursement may be reduced by the attorney fees incurr ed by the Member to obtain the Social Security benefits. With regard to any Other Income Sources, such anticipated eligibility will not be assumed only if the Company has received satisfactory evidence of failure to qualify for such benefits or income. If at any time it is determined that Other Income Sources used to compute Long Term Disability Benefits are incorrect, the Company will have the option to: a. reduce future benefits payable by the full amount of the ex cess payment; or b. recover the ex cess paym ent from the Member; or c. take any other legal action.

Benefit Reductions. a. The Monthly Benefit Amount shall be reduced by the Other Income Sources as de fined defined in Item 1. b. The Monthly Benefit Amount shall also be reduced to the ex tent extent that the sum of the Monthly Benefit Amount and Other Income Sources (as defined in Item 1) ex ceeds exceeds 70% of the Member’s Monthly Salary. c. During Residual Disability, the benefit p ayable payable will be the Monthly Benefit Amount reduced by the Other Income Sources multiplied by the Income Loss Percentage, subject to the limits described in b. above. When a monthly payment is less than $25.00 the frequency of payment shall be changed to th e the periodic payment intervals of every other month, quarterly, semi -annuallysemi-annually, or annually, based on the discretion of the Company. Any Other Income Sources shall be deemed received by the Member even though determination of such other benefits or income ma y may not have been completed, where it is reasonable to believe that the Member would be eligible for such other benefits or income. The anticipated eligibility of Social Security benefits will not be considered if the Member follows the following guidelin esguidelines: If it is reasonable that the Member would be entitled to disability benefits under the Federal Social Security Act, the Company will require the Member to: i. apply for Social Security benefits within 30 days after receipt of written notice from the Company requesting the Member to apply for such benefits; and ii. give satisfactory proof within 45 days after receipt of the Company’s notice that the Member has applied for these benefits within the 30 day period; and iii. if the original application is denied, request reconsideration of the application for Social Security benefits, within 60 days from the date of the denial letter from the Social Security Administration; and iv. give satisfactory proof within 75 days from the date of the denial letter from the Social Security Administration that the Member has requested a reconsideration within the 60 day period; and v. if the reconsideration of the application is denied, request an appeal within 60 days of the date of the reconsideration denial letter from the Social Securit y Security Administration; and vi. give satisfactory proof within 75 days from the date of the reconsideration denial letter from the Social Security Administration that the Member has requested an appeal within the 60 day period; and vii. an agreement, signed by the Member Member, that will reimburse the Company for ex cess excess benefits received if Social Security benefits are subsequently awarded in connection with the Total Disability or Residual Disability. The amount of such reimbursement may be reduced by the attorney fees incurr ed incurred by the Member to obtain the Social Security benefits. With regard to any Other Income Sources, such anticipated eligibility will not be assumed only if the Company has received satisfactory evidence of failure to qualify for such benefits or income. If at any time it is determined that Other Income Sources used to compute Long Term Disability Benefits are incorrect, the Company will have the option to: a. reduce future benefits payable by the full amount of the ex cess excess payment; or b. recover the ex cess paym ent excess payment from the Member; or c. take any other legal action.