Disability Benefit Offset Clause Samples
A Disability Benefit Offset clause defines how disability benefits from other sources, such as government programs or insurance policies, are factored into the calculation of benefits payable under the current agreement. Typically, this clause reduces the amount paid by the employer or insurer by the value of any external disability payments the individual receives, ensuring that the total benefits do not exceed a predetermined limit. Its core function is to prevent double recovery and ensure that the beneficiary does not receive more than the intended amount of disability compensation.
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Disability Benefit Offset. If, as of the Date of Termination, Executive is eligible to receive disability benefits under one or more of the Company's or one of its affiliates' long-term disability plans that cover Executive (collectively, the "LTD Plan") because of a determination that Executive is totally or partially disabled, then:
(i) the aggregate lump-sum cash payment to be paid to Executive pursuant to Section 5.2(a) shall be reduced (but not to less than zero) by the product of (x) the gross annualized cash disability benefit that is payable to Executive pursuant to the LTD Plan as of the Date of Termination and (y) the Classification Factor (or, if less, the Retirement Factor);
(ii) notwithstanding Section 5.2(f)(i), if Executive ceases to receive disability benefits under the LTD Plan prior to the expiration of a number of years after the Date of Termination equal to the Classification Factor (or, if less, the Retirement Factor), then the Company shall promptly pay to Executive an additional lump-sum cash payment equal to the difference between (x) the amount by which the aggregate lump-sum cash payment made to Executive pursuant to Section 5.2(a) was reduced by reason of Section 5.2(f)(i) and (y) the total gross amount of the cash disability benefits paid to Executive pursuant to the LTD Plan during the period from the Date of Termination until the date disability benefit payments to Executive pursuant to the LTD Plan ceased; and
(iii) for purposes of Benefits Period pension and SERP accruals pursuant to Section 5.2(e)(ii) and (iii), Executive's Annual Base Salary and Annual Bonus together shall not be less than the greater of (x) the gross annualized cash disability benefit that is payable to Executive pursuant to the LTD Plan as of the Date of Termination and (y) the amount of compensation taken into account for purposes of Executive's earnings credits under the relevant Company Pension Plans immediately prior to the Date of Termination annualized."
Disability Benefit Offset. Any amounts payable under paragraph 7(a) or 7(b) shall be reduced by any amounts paid to Executive under any other disability program or insurance maintained by the Bank.
Disability Benefit Offset. Any amounts payable under paragraph ------------------------- 6
(a) hereof shall be reduced by any amounts paid to Employee under any other disability program or policy of insurance maintained by Employers.
Disability Benefit Offset. Any amounts payable under Section 6(a) hereof shall be reduced by any amounts paid to the Executive under any other disability program or policy of insurance maintained by the Parent.
Disability Benefit Offset. Any amounts payable under paragraph 7(a) ------------------------- or 7
Disability Benefit Offset. (i) The first sentence of Section 5.2 of the Agreement is hereby amended to: (1) replace the reference to "Subsections (a) through (e)" with "Subsections (a) through (f)"; (2) delete the phrase "or Disability" from clause (ii) thereof; (3) insert "(iii)" immediately before the phrase "after the Executive attains age sixty-five (65)"; and (4) renumber current clause (iii) thereof as clause (iv).