What Impact Would Receiving Severance Pay Have On My SSDI Benefits?

Oct 2 2019 - 3:14pm

Hi Larry, I am already on SSDI due to a stage 4 brain tumor. I have been employed the entire time but not working. My employer is offering me a severance package as part of termination. This will be fairly substantial and I am wondering what impact this will have on continued SSDI payments.

Hi,

I'm sorry to hear about your illness. I hope that whatever type of treatment you're receiving is successful.

If your employer pays you a severance payment it shouldn't have any impact on your Social Security disability (SSDI) benefits provided that you haven't worked since your SSDI date of disability onset. You'll want to let Social Security know if you do receive any payments from your employer so that they will know that the payments are for something other than your returning to work.

Best, Jerry