Ask Larry

Will Social Security Deduct My Pension Amount From My Disability Benefits?

my neurologist disabled me from all work oct 2016 while being on a disability leave from my job-my employer then canceled my short-term disability and put me on unpaid medical leave forcing me to then go on an unpaid job search because I had to have income/I am single/ which lasted 10 weeks/no pay/then forcing me into severance which I took in installments to reach retirement and start small pension/$200/month? I have looked for another job I could do but have had no success/I have liquidated all 401k - and sold home to live-now filing for ssi/will they subtract my pension/$200/ from my monthly benefit amount?? And if I work now after filing until they find me disabled and benefits are to start will they deny me???????

Hi,

I'm sorry to hear about your health and financial problems.

If what you've filed for is Social Security disability benefits (SSDI) and your claim is approved, then your $200 pension wouldn't have any effect on your SSDI benefit rate unless you didn't pay Social Security taxes on your earnings while you worked for that employer.

If what you've filed for is Supplemental Security Income (SSI) and you are approved, then yes Social Security would deduct at least all but the first $20 of your pension amount from your monthly SSI payment. SSI is a needs based program designed to provide a last resort source of income to people who are aged (65+), disabled or blind, and who have little or no other source of income or assets.

Your claim(s) for either SSDI or SSI could potentially be disallowed if you return to work, but that probably wouldn't happen unless you are earning an average of more than $1180 per month (https://www.ssa.gov/OP_Home/handbook/handbook.06/handbook-0603.html).

Best, Jerry

Posted: 
Jul 9 2018 - 8:48am
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.