Should I Pursue Social Security Disability Benefits
Thus, the factors that one should consider when pursuing Social Security Disability concurrent with a FERS Disability Retirement application, should take into account the following questions:
- Will I be working at a private sector job, and if so, how soon after I begin receiving a FERS Disability Retirement annuity, and approximately how much will I expect to be making?
- While the combination of FERS Disability Annuity and the SSDI payments will net me more, will it be worthwhile if I go out and get a job that exceeds the Social Security threshold of acceptable limits? For, as a practical matter, while the offset against a FERS annuity payment is supposed to be recalculated by OPM if the SSDI benefit is lost, the reality is that OPM is a large and rather unresponsive bureaucracy, so that getting the full benefit back will often take up a great amount of time several months, at least.
- Do I expect to work at a private sector job that will make pursuing SSDI impractical, and therefore should I put in the minimum effort necessary to simply comply with the requirement of filing for SSDI?
Pros And Cons Of Collecting Social Security While Working
If youre eligible for Social Security, you can start collecting your benefits as early as age 62. You can also continue to work. But unless youve reached your full or normal retirement age , youll be doubly penalized:
- If you earn over a certain amount, your benefits will be temporarily reduced.
Differences Between Ssdi And Va Disability
A primary difference between these two programs is the nature of disabilities they consider eligible. To qualify for veteran disability benefits, your disability must have been service-connected that is, it started during your active duty. Under the SSDI, this is not an eligibility requirement.
However, the SSDI program also does not consider disability by degrees you are either found disabled or not. This is in contrast to the VAs rating system which compensates even partial degrees of disability. Under the VA program, you may receive benefits even when your compensable disability rating is only 10 percent, whereas in SSDI, you must be found to be completely unable to work profitably before you can collect benefits.
Because of this, the benefit amounts between the two programs also vary. Veteran disability benefits depend largely on the rating of disability as well as the number of dependents. Check these tables on the VA website to see how much you may receive. On the other hand, SSDI benefits are based on your work earnings record prior to disability . SSDI recipients typically receive $700 to $1,700 per month.
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Social Security Disability Benefits
The Social Security Administration oversees three wage benefit options. Each program serves distinct populations and has unique eligibility requirements.
The advantage is that most US citizens are eligible to participate if they pay FICA taxes. However, only one of the three alternatives could possibly help during a temporary work absence.
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The Advantages Of Disability Retirement In California
Experiencing any type of injury or disability can be devastating, and one that permanently prevents you from working can put your financial future at risk. But depending on your injury, California has both state and federal regulations that can help you receive a certain disability retirement amount, allowing you to meet your financial expenses without having to worry about your inability to work.
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Understanding Ssdi And Ssi In California
Social Security Disability Insurance and Supplemental Security Income are two distinct programs with different requirements.
Most people in California have heard about Social Security Disability even if they have not needed it themselves. However, one of the most commonly misunderstood facts about this form of assistance is that it is quite different from another form of public assistance-Supplemental Security Income. Understanding the difference between the two is important for all workers in California.
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Social Security Disability Insurance
SSDI is what comes to mind when most people think of Social Security disability. It is a program for workers who become disabled. In order to qualify, you not only must meet the programs medical requirements, but you also must have a sufficient history of working and paying payroll taxes.
Unlike the other big federal government disability program, VA disability, SSDI requires you to be fully disabled to receive benefits. There is no partial Social Security disability. For this reason, when you file a disability claim, your medical evidence and other supporting documentation are critical.
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Expect Possibly Longer Wait Times
In March 2020, the Social Security Administration mostly shuttered its in-person services.
Today, it is still largely processing correspondence online and via postal mail.
A recent investigation by the Social Security Office of the Inspector General found there have been some big delays for people waiting on application decisions.
Currently, its taking about 125 days for the agency to process an initial claim, Geist said. For applications that are reconsidered, theres an additional four months to six months, he said.
So if youre planning to file an application for benefits for any disabling condition, including Covid-19 and associated long haul issues, the earlier, the better, Geist said.
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Brief History Of Social Security
The Social Security program was created by the Social Security Act that President Franklin D. Roosevelt signed into law in 1935. The first checks went out in 1940. Originally it paid benefits only to workers 65 and older, but in the 1970s the government altered it to allow workers to claim benefits as early as 62. It also instituted annual cost-of-living adjustments to help Social Security keep pace with inflation.
The program has worked fairly well so far, but many people fear for the future, when there will be fewer workers to support a greater number of Social Security recipients. The latest Social Security Trustees’ Report indicates the program’s trust funds would be depleted by 2034, after which it would be able to pay out only about 76% of benefits to retirees and about 92% to disabled workers.
The government has proposed several possible solutions for ensuring the long-term sustainability of the program, but at present no plans have been set. There’s no risk of the program disappearing in the next decade or two, but it’s possible future benefits may not go as far as they do today. That’s why today’s workers need to prioritize their personal retirement savings, so they can cover most of their expenses on their own.
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How Do Ssdi And Social Security Retirement Work Together
SSDI pays out your full retirement benefits until you qualify to draw them under the traditional Social Security retirement scheme. Once you reach full retirement age based on the year you were born, the SSA will automatically start your retirement benefits and cease your SSDI payments.
The SSA allows you to file for retirement benefits as early as age 62. You can also wait and receive your full benefit amount when you reach full retirement age. Depending on what year you were born, this may vary from 65 to 67 years old.
Qualifying For Social Security Disability Insurance
First, lets consider eligibility requirements for SSDI. The person must meet the definition of disability established by the Social Security Administration . This includes that the condition has lasted or is expected to last at least 12 months , the individual is unable to perform previous work, and is unable to adjust to other types of work.
The mental or physical condition must be severe enough and be found in the SSA Listing of Impairments. Finally, the individual must have worked long enough and recently enough to have earned an adequate number of work credits.
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Can You Collect Social Security And Disability
Wondering whether you can collect Social Security and Social Security Disability Insurance at the same time? The short answer is probably not. The long answer, however, is maybe. Social Security and SSDI serve similar purposes, but the requirements vary for each. Social Security is for those whove reached early or full retirement age, while disability insurance typically serves younger individuals who cannot work due to serious medical conditions. However, an exception may apply. We take a closer look in this guide.
A financial advisor can provide professional insight into the world of retirement planning. Find a financial advisortoday.
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How The Offset Applies To Disability Backpay
If youre approved for SSDI benefits, Social Security will pay you the monthly Social Security disability payments that you werent paid while you were waiting for a decision. Back payments can go back to a year before you apply . Before releasing your lump-sum of back payments, Social Security will calculate the offset for each month that you are owed backpay. Any month where the amount of SSDI and SDI your family would have received is above 80% of your pre-disability salary or wages, Social Security will determine the offset and subtract each months excess from your lump-sum back payment.
Is Your Condition Severe
Your condition must significantly limit your ability to do basic work-related activities, such as lifting, standing, walking, sitting, or remembering for at least 12 months. If it does not, we will find that you are not disabled.
If your condition does interfere with basic work-related activities, we go to Step 3.
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How Can The Social Security Disability Programs Be Improved To Increase Economic Security And Work Opportunities For Beneficiaries
Disability Insurance and Supplemental Security increase economic security for millions of disabled workers. For beneficiaries whose conditions improve, the programs also provide important incentives and supports for returning to work. Still, the programs could be further strengthened to increase disabled workers economic security and provide a more seamless transition for those who are able to return to work.
Modernize Supplemental Security
The value of Supplemental Security benefits has eroded considerably since the programs inception in 1972, as the programs income exclusions and asset limits have not kept pace with inflation and living standards. The current maximum benefit is equivalent to just three-quarters of the also-outdated federal poverty line for a single person. The general income exclusion and earned income exclusion have never been increased. To address this erosion, H.R. 1601, the Supplemental Security Restoration Act, sponsored by Rep. Raul Grijalva and introduced in Congress in April 2013, would increase the monthly maximum benefit to $937, which is 100 percent of the current federal poverty line, and would increase the general income disregard to $110 per month and the earned income disregard to $357 a month. Increasing the income exclusions and indexing them to inflation going forward would restore the monthly benefit amount to its intended value and significantly increase beneficiaries economic security.
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I Am Disabled And Get Disability Benefits Do I Still Have To Pay Child Support
You should not have to pay child support if you receive Supplemental Security Income .
- However, if you were ordered to pay support and later start receiving SSI, you will have to file a Petition to ask for the court to stop the support. To find out which Petition you should use, see I cant afford my child support payment. Can I lower the amount?.
You may have to pay child support out of your check if you receive Social Security Disability Insurance .
- If you do not pay, Social Security can garnish part of your benefit. The largest amount they can garnish is 65%.
- NOTE: If your child receives benefits on your record, then the court can consider that in deciding whether to lower your support amount. You will have to file a Petition to ask the court to change the amount of support you are ordered to pay. To find out which Petition you should use, see I cant afford my child support payment. Can I lower the amount?.
Generally, your VA disability compensation benefit cannot be garnished to pay for child support. Exception: Your benefit can be garnished if you waived part of your military retired pay to receive VA disability benefits.
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If I Qualify For Va Disability Will I Automatically Qualify For Social Security Disability
No. You must qualify for each separately. Winning approval for one type of benefits does little to nothing to boost your chances of getting another.
If the VA grants you disability, it does not mean that an approval for Social Security Disability will follow, or vice versa. Remember, the VA system awards benefits for varying degrees of disability, while the SSA system makes a determination of disabled or not disabled.
If the SSA approves you for SSDI or SSI, you still must prove to the VA that your condition is service-connected, which is not an easy thing to do. Without sufficient evidence, the VA can call into question whether your medical condition arose as a result of an event in your military service or is otherwise related to your military service.
Note: If you have a Permanent and Total disability rating from the VA, you can receive expedited processing for an SSI or SSDI claim.
Can You Receive Retroactive Payments
Once the SSA approves your SSDI application and calculates your monthly benefit, you may be entitled to a back pay award. How many months of payments you will receive will depend on the date you applied for benefits and your disability onset date.
If you are applying for SSDI benefits, you need the assistance of a skilled Social Security disability lawyer to get your application approved and receive the benefits you deserve. To schedule a free consultation with a member of our legal team, fill out the online form on this page or call our Roswell office today.
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Can I Qualify For Ssi While Collecting Social Security Retirement Benefits
While you cannot collect Social Security retirement and SSDI at the same time to increase your benefits beyond the full retirement amount, there is a program that may allow you to collect additional income.
SSI, which stands for Supplemental Security Income, is a Social Security program that helps seniors and those with a disability who have an extremely low income or limited assets. To qualify for SSI, you need to meet strict income qualifications and have only a minimum amount of resources. Resources, as the SSA defines the term, can be anything that can be turned into cash, such as:
- Bank accounts, stocks, or U.S. savings bonds
What If I Attempt To Return To Work But I End Up Needing To Go Out On Disability Again
If you return to work and are able to perform your regular or customary job for more than 60 days, then your disability benefit period is considered ended. If you stop working again due to disability, you must file a new claim for SDI, and re-establish your eligibility for benefits as of the date of the new claim. If you are eligible for SDI as of the date of your new claim, you are entitled to a new benefit period of up to 52 weeks.
If you return to work for more than 60 days, but do not perform your regular or customary work due to your disability for example, you work only light duty or only part-time you may be able to continue your prior disability claim. You will need to show EDD that you did not perform your regular or customary work when you attempted to return to work.
If you return to work for fewer than 60 days, and stop working due to the same disability, you are considered to be within the same disability benefits period. You may continue receiving benefits under your original claim and the 7-day waiting period required by these claims will be waived.
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The Facts On Social Security Disability Insurance And Supplemental Security Income For Workers With Disabilities
Endnotes and citations are available in the PDF and Scribd versions.
Nearly one out of every six working-age Americans29.5 million peoplehas a disability, making them much more likely to experience economic hardship than people without disabilities. Many people with disabilities are able to work, although they face greater challenges finding work than people without disabilities. But many individuals with severe and long-lasting disabilities have no or only limited capacity to work and are particularly vulnerable to economic hardship.
For roughly 12 million people with disabilities, Social Security Disability Insurance and Supplemental Security Income, both core components of our nations Social Security system, provide critical lifelines. The modest but vital assistance that Disability Insurance and Supplemental Security provide makes it possible for individuals with severe disabilities and health conditions to live independently, keep a roof over their heads and food on the table, and pay for needed, often life-sustaining medications and other basic expenses.
This issue brief answers some of the common questions about Disability Insurance and Supplemental Security. Our focus in this brief is on nonelderly adults with severe disabilities. It is important to note, however, that Supplemental Security also provides vital support to some 1.2 million children with severe disabilities, as well as more than 2 million low-income seniors.