Certain Disability Payments and Workers’ Compensation May Affect Your Social Security Benefits
I recently completed a refresher course that covered federal benefits that can affect Social Security disability and thought the information would be useful to share. Here is a recent blog by Mike Korbey, the Social Security Deputy Commissioner for Communication on the subject:
Many people working nowadays have more than one job. This means they have several sources of income. It’s important to keep in mind that having multiple sources of income can sometimes affect your Social Security benefits; but, it depends on the source.
Disability payments from private sources, such as private pensions or insurance benefits, don’t affect your Social Security disability (SSDI) benefits. Workers’ compensation and other public disability benefits, however, may reduce what you receive from Social Security. Workers’ compensation benefits are paid to a worker because of a job-related injury or illness. These benefits may be paid by federal or state workers’ compensation agencies, employers, or by insurance companies on behalf of employers.
Public disability payments that may affect your Social Security benefits are those paid from a federal, state, or local government for disabling medical conditions that are not job-related. Examples of these are civil service disability benefits, state temporary disability benefits, and state or local government retirement benefits that are based on disability.
Some public benefits don’t affect your Social Security disability benefits. If you receive Social Security disability benefits, and one of the following types of public benefits, your Social Security benefits will not be reduced:
- Veterans Administration benefits;
- State and local government benefits, if Social Security taxes were deducted from your earnings; or
- Supplemental Security Income (SSI).
You can read How Workers’ Compensation and Other Disability Payments May Affect Your Benefits https://www.ssa.gov/pubs/EN-05-10018.pdf to find out about the possible ways your benefits might be reduced.
Please be sure to report changes. If there is a change in the amount of your other disability payment, or if those benefits stop, please notify us right away. Tell us if the amount of your workers’ compensation or public disability payment increases or decreases. Any change in the amount or frequency of these benefits is likely to affect the amount of your Social Security benefits.
An unexpected change in benefits can have unintended consequences, like an overpayment resulting in you having to pay money back. You can be better prepared if you’re informed and have financially prepared yourself.
Mission Possible has certified benefit planners on staff to assist and inform you on how other federal benefits may interact with your disability benefits. Call us with questions or for more information 888-359-2366.
~Tina
tina@mpes.net
https://blog.ssa.gov/certain-disability-payments-and-workers-compensation-may-affect-your-social-security-benefits/
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