Collecting Social Security Disability? Maximize Your Benefits from All Sources

If you have become disabled and can no longer work, there may be a number of resources at your disposal to supplement your income. One of the most widely-utilized such programs is Social Security Disability (SSD). But, those seeking to collect the federal SSD benefits they have earned through working may not be aware that other types of disability packages can impact the SSD payments they are entitled to.

Public Benefits Can Lower SSD

If you receive some other form of public disability benefits (usually those from a government provider or program), the total amount you bring home from these sources may not have been greater than 80 percent of your average earnings prior to becoming disabled. If payments currently exceed this figure, your SSD benefits will be reduced until you stop receiving the other benefits or you turn 65.

So which types of benefits fall into this category? Temporary disability benefits provided by a state, government retirement benefits based on disability, and civil service disability benefits are examples of benefits for non-work-related injuries and illnesses that will lower SSD if, when combined with SSD, they add up to more than 80 percent of your former earnings.

Workers’ compensation programs issue payments for job-related medical conditions. These payments commonly result in a reduction in SSD payments. Workers’ compensation benefits are not necessarily paid by government agencies; they may also come directly from employers or their insurers. Regardless, workers’ comp still figures into the public disability benefits limit. Some workers’ compensation policies offer lump-sum settlements in lieu of ongoing payments, which can also affect SSD. If you are offered a lump-sum payment, it is especially important to consult an attorney to discuss how to get the most out of your benefits.

Some Benefits Exempt

Disability benefits from private sources (private pension plans or insurance payouts, for instance) never impact SSD payments.

In addition, even certain public benefits will not figure into the 80 percent of pre-disability income limit. Veterans Administration benefits, Supplemental Security Income, and, if Social Security taxes have been withheld from your earnings, any state or local government benefits will have no effect on SSD.

If you have become disabled, you should contact an attorney to explore which benefits you may be eligible to receive, and ensure that your benefit package is set up to maximize your income.