Prudential Advances Claim to Recoup Overpaid Disability Benefits

Prudential Insurance Co. of America can continue with its counterclaim to recover alleged overpayment of long-term disability benefits to a plan participant who received a retroactive Social Security award (Schiavone v. Prudential Ins. Co. of Am., 2017 BL 137891, N.D. Ill., No. 1:16-cv-09848, 4/26/17).

An agreement between the participant and Prudential and the plan’s terms afford the insurance company the right to recover any overpayment of benefits due after her receipt of Social Security benefits, a federal judge in Illinois held April 26.

The decision is noteworthy for its discussion of three related decisions by the U.S. Supreme ...