When is a group long-term disability plan said to be integrated with Social Security?

A group long-term disability plan is considered integrated with Social Security when the total benefits provided by both the Social Security program and the group disability plan do not exceed a predetermined maximum limit. This arrangement allows for a seamless coordination of benefits between the two sources, ensuring that the total payments received by an individual, when combined, do not surpass a set threshold.

Integrating the plan with Social Security in this manner can help control overall costs for the insurer and provide beneficiaries with a more predictable income stream while they are disabled. This approach ensures that claimants receive a sufficient level of support without causing them to receive an excessive amount in total benefits compared to what is typically considered reasonable.

The other options reflect potential misunderstandings of how integration works. For example, having group benefits paid only after Social Security benefits are exhausted, suggesting a sequential payment process, does not truly reflect integration, as integration implies a complementary relationship between the two systems rather than a sequential one.