SSD is not effected by payments to an individual of structured settlement payments.

The following information is derived from the Social Security Website.

WHAT IS SOCIAL SECURITY DISABILITY  INCOME (SSD):

Social Security Disability Insurance (SSDI) is financed with Social Security taxes paid by workers, employers, and self-employed persons. To be eligible for a Social Security benefit, the worker must earn sufficient credits based on taxable work to be "insured" for Social Security purposes.  Disability benefits are payable to blind or disabled workers, widow(er)s, or adults disabled since childhood, who are otherwise eligible. The amount of the monthly disability benefit is based on the Social Security earnings record of the insured worker.

Please see Benefits page.

 

Qualification and Eligibility Rules

Under the Social Security Disability Insurance program, an adult child (a person age 18 or older) may receive monthly benefits based on disability or blindness if:

  • He or she has an impairment or combination of impairments that meets the definition of disability for adults;

    The disability began before age 22;

    The adult child's parent worked long enough to be insured under Social Security and is receiving retirement or disability benefits or is deceased.
     
  • The child must not be doing any "substantial" work, and must have a medical condition that has lasted or is expected either to last for at least 12 months or to result in death.
     
  • Social Security Disability benefits will not begin until the sixth full month of disability. The Social Security Disability waiting period begins with the first full month after the date we decide your disability began.

    Social Security Disability benefits begin after the disabled individual  has been disabled for 5 full months. These 5 months are called the "waiting period."

Social Security evaluates the work activity of persons claiming or receiving disability benefits under Social Security Disability Insurance. Beginning January 1, 2005, a Social Security Disability beneficiary can earn $830 a month as a result of "substantial gainful activity" or SGA and remain eligible for benefits. For 2004, this amount was $810. Under the new rule, monthly SGA earnings limits will be automatically adjusted annually based on increases in the national average wage index. This amount applies to people with disabilities other than blindness.

If the applicant is blind, effective January 2004, earnings averaging over $1,350 a month generally demonstrate SGA. For January 2005, the blind SGA amount was increased to $1,380.

Please see Benefits Page.

     

REDUCTIONS IN BENEFITS

Social Security disability benefits will be reduced so that the combined amount of the Social Security benefit a family receives plus a workers' compensation payment and/or public disability payment does not exceed 80 percent of the recipient’s average current earnings. (Note that the unreduced benefit amount is counted for income tax purposes.)

Disability payments received from workers' compensation and/or another public disability payment may reduce  Social Security Disability benefits.

A workers' compensation payment is one that is made to a worker because of a job-related injury or illness.  It may be paid by federal or state workers' compensation agencies, employers, or insurance companies on behalf of employers.

Public disability (PDB) payments that may affect Social Security benefits are those paid under a federal, state, or local government law or plan. A PDB is not usually based on a work-related disability. They differ from workers' compensation because the disability that the worker has may not be job-related. Examples are civil service disability benefits, military disability benefits, state temporary disability benefits, and state or local government retirement benefits which are based on disability.

For someone who is working, the first $65 ($85 if the person has no other income in a month) of earnings in a month are disregarded. After that Social Security considers $1 for every $2 the person earns in a month. Social Security also deducts from the monthly earnings any monthly expenses that a person, who has a disability has which are needed by the person to work, are related to the person's impairment and paid by the person. These expenses are deducted before Social Security applies the $1 for $2 computation.

For someone who is blind, Social Security deducts any expenses the person has in order to work that are paid by the person. This amount is deducted from the earnings after the $1 for $2 computation from the monthly earnings. The remaining earnings are added to any other income the person receives in a month, such as a pension or unemployment insurance, and the result is deducted from the federal benefit rate, which is $579 a month for 2005 ($564 for 2004).

Jay J. Sangerman, PLLC
171 East 84th Street - Unit 21B
New York, New York 10165
Telephone (212) 922-0711
Facsimile (212) 436-0056
 

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