Will Collecting Pension Affect Benefits?

No one intends to become disabled; it’s just one of those unfortunate cards life sometimes deals us. Many people do try to plan for the future by investing in an employer’s pension plan. Workers who are thinking of going on disability often have questions about whether getting Social Security Disability Insurance (SSDI) benefits will affect their pension, and vice versa.

If you or a family member has such questions, you need to consult an experienced SSDI Attorney. SSDI statutes are complicated and often change. The legal team at Kenton Koszdin Law Office is knowledgeable about current SSDI laws and stipulations. We’ve been in practice for over 15 years and helped thousands of Los Angeles area disability clients.

For a free consultation, call our offices today at (800) 438-7734.

SSDI verses SSI

While both SSDI and Supplemental Security Income (SSI) are handled by the Social Security Administration, they differ in a major way. Unlike SSI, SSDI is not a needs-based program. SSDI benefits are determined by what you’ve paid into the system over the course of your working career.

SSDI Benefits and Pensions

A common question asked by those applying for SSDI benefits, is whether they will conflict with the pension plan they’ve paid into while working for an employer. The short answer to this question is “No.”

As mentioned before, SSDI benefits are not determined by an individual’s needs, but what they’ve paid into the system. In a way, SSDI is just like the employee pension plan you have contributed to: you get out of it, what you put in to it. Pensions and SSDI benefits are considered separate entities, both of which you’ve earned. So, collecting your pension in a lump sum or in installments will not affect your SSDI benefits. But, there are some exemptions.

Non-taxed Earnings

In the past, certain states and other employers opted out of the Social Security system. This means that their pension plans are based in non-taxed earnings. If your pension was based on non-taxed contributions, your SSDI benefits will likely be affected.

Private Disability Benefits

If you’re receiving disability payments from an employer or private, long term disability company, their payments will likely be reduced when you begin receiving SSDI benefits.

Government Agency and Military Pensions

If you’re receiving a pension from the military or other government agency, it is unlikely that your SSDI benefits will be affected. Again, it is different if your pension is based on non-taxed contributions, such as in the case of federal civil service employees.

Social Security Disability Insurance is an important program for America’s workers, but its rules and stipulations can be complicated for the average person to understand. Kenton Koszdin Law Office has guided Southern California disability clients through the SSDI maze for over 15 years. We are passionate about getting the disabled the benefits they have earned and deserve.

Call Kenton Koszdin Law Office today for a free consultation at (800) 438-7734. If you are too injured to come in to our office, we will come to you.