Social Security Disability Q & A: Offsets


Q: Can I receive Social Security Disability and my pension at the same time?

A: If you receive a private pension, you can still receive Social Security Disability Insurance benefits (SSDI). If you receive a government pension, you might not have contributed enough to Social Security through income tax withholdings to be eligible for SSDI. If you did, your eligibility may be subject to the Windfall Elimination Provision, which could result in a reduction of your SSDI. Supplemental Security Income benefits (SSI) are often confused with SSDI and would be reduced or precluded by any pension income.

Q: Can I receive Social Security Disability and Long Term Disability at the same time?

A: It depends on the Long Term Disability policy and the Social Security Disability monthly benefit amount. First, in order to receive Long Term Disability benefits, most policies require you to file for Social Security Disability. If you don’t, your Long Term benefits could be reduced based on what you would receive from Social Security, so there is no reason not to file for Social Security. If Social Security is denied, Long Term benefits will continue based on the policy. If Social Security is approved, the Long Term benefits could be reduced by how much you receive in Social Security.

Q: Will my Worker’s Compensation settlement affect my Social Security Disability benefits?

A: Maybe but probably not. Worker’s Compensation (WC) settlements are prorated into a monthly amount based on your life expectancy. That amount, combined with your monthly SSDI benefit, cannot exceed 80% of your Average Current Earnings. If it does, either the WC or SSDI benefits will be reduced, depending on your home State. This usually doesn’t happen unless the settlement is quite large.

Q: Will an inheritance affect my Social Security Disability benefits.

A: No. Social Security Disability benefits will not be reduced due to income such as an inheritance. However, the inheritance could affect how your SSDI income is taxed that year. Supplemental Security Income benefits (SSI) are often confused with SSDI and would be reduced or precluded by an inheritance.

Written by Charles Sagert

Charles A. Sagert is a Social Security Disability attorney in Roseville, MN.

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