Ask Larry

I got hurt at work and receiving Workers Comp payments for a 12% impairment rating (3 level back fusion), among others conditions. I am still working, but submitted a claim and my employer is offering $50,000 to settle. I am married, female and 59yr. My wife is receiving SSDI of $1,605 net monthly for the past 10 years, she is 68. The last time I checked MySocial the benefits will be around $1,000 - $1,050 as per website. So, If that is the amount I will be receiving or I will be paired with my wife's SSDI?

Hi. I don't have nearly enough information to be able to give you an estimated benefit amount. What I can tell you from the limited information in your question is that it sounds like your primary insurance amount (PIA) is more than half as much as your wife's PIA, in which case you won't be able to qualify for spousal benefits at least while your wife is living. If you qualify for Social Security disability (SSDI) benefits based on your own record, your benefit rate before any offsets or deductions would be equal to your PIA, which is essentially the same as what your Social Security retirement benefit rate would amount to if you started drawing those benefits at your full retirement age (FRA).

However, SSDI benefits can potentially be fully or partially offset if the person receiving SSDI is also receiving or received Workers Compensation (WC). Even if you receive a lump sum WC settlement in lieu of weekly or monthly payments, your SSDI benefits can still potentially be offset for years after you receive the settlement. The formula for determining how much if any WC offset applies to a person's SSDI benefit is complex, but the basic principle is that the total monthly WC and SSDI amount payable can't exceed 80% of the person's 'average current earnings' (ACE). In most cases, the ACE is equal to 1/12th of the person's highest year of earnings in the 5-year period preceding the year they became disabled (https://secure.ssa.gov/apps10/poms.nsf/lnx/0452150001).

However, some states have passed reverse offset laws, and in those states any applicable offset would apply to the person's WC payments rather than their SSDI benefits. So, the bottom line is that your SSDI benefit rate would depend on the amount of your PIA, which is calculated based on your earnings history, as well as your ACE, WC benefit rate, and the state in which your work injury occurred.

Best, Jerry

I have been disabled since 2017. And I am aged 63 . How do I know if I get ssd ir Ssi ? I need to know if my benefits will stop after selling house

Hi. If your monthly benefit payment normally arrives on the 1st day of the month, then you must be receiving Supplemental Security Income (SSI). SSI is needs based, and if you receive SSI then selling your house could cause your benefits to stop unless you use the proceeds from the sale to buy a new home in which to live within 3 months.

If your benefit payment normally arrives on either the 3rd day of the month, or on the 2nd, 3rd, or 4th Wednesday of the month, then you are likely receiving Social Security disability (SSDI) benefits, in which case selling your home wouldn't affect your benefits. If you aren't sure what type of benefit you are receiving, though, you can always call Social Security to find out.

Best, Jerry

What is the downside to my spouse claiming work history benefits upon turning 62 then upgrading to spousal benefits when I turn 67? Is there a general rule of thumb as to whether or not it is worthwhile to have her start claiming benefits at 62?

Hi. The potential downside is that your wife would then be stuck with the reduction for age that's applied to her benefit rate for at least as long as both of you are living, even if she later qualifies for spousal benefits from your record. Your wife can't simply claim benefits on her own account at age 62 and then switch to spousal benefits at a later date. Once she applies for her own benefits, those benefits continue for life.

Furthermore, assuming that your wife was born after January 1 1954, whenever she applies for her own benefits she'll be deemed to also be applying for spousal benefits. That means if your wife claims her own benefits early and if you start drawing your benefits before your wife reaches her full retirement age (FRA), then both her own benefit amount and any additional spousal benefits for which she qualifies would then be reduced for age.

It sounds like you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your various options so that you can determine the best overall strategy for maximizing your benefits.

Best, Jerry