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Vanilla DB plan, Vanilla LTD plan (but I don't have the detailed contract).

The latter contains the common long-term disability provision that offsets for anything the EE receives from the DB plan.

Suppose the disabled EE is age 60 and eligible for monthly early retirement benefit, and the DB plan pays a lump sum (rather than an immediate LA). What is the most common administrative practice in the LTD plan: offset the entire lump sum until "used up"? offset the monthly equivalent? other?

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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