Social Security provides disability payments to qualifying workers who suffer from total disabilities that leave them unable to work. The Social Security Administration calculates how much you receive in disability by looking at your work history, but it reduces the payment amount in some cases if you have other types of income.
In particular, certain pension payments will result in a smaller Social Security disability check. Below, we'll take a closer look at these provisions and how they might affect you. Disability and pensions In most cases, those who are eligible for pensions won't see any impact on their Social Security disability benefits. The key question is whether you had to pay Social Security taxes on the earnings that allowed you to qualify for your pension.
For private businesses and for many government jobs, earnings are subject to tax withholding for Social Security, and so any pension you receive will have no impact on your disability benefits. Certain government employers, especially state and local government agencies, do not have to withhold Social Security taxes from their employees' pay. In those cases, the Windfall Elimination Provision can apply to reduce your Social Security disability benefits.
Determining the exact amount of the reduction is complicated, as it depends on the number of years you've worked at jobs where you did pay into Social Security as well as the year in which you became disabled. However, the SSA does provide a table that gives the maximum possible reduction, subject to the overarching rule that your benefits will never fall by more than half the amount of your pension. Those who've worked for 30 years or more in a Social Security tax-paying job won't see any reduction in benefits because of the provision.
Spousal and survivor benefits If you aren't disabled but your spouse is, then you might qualify for spousal benefits under Social Security disability. Those benefits aren't subject to the Windfall Elimination Provision, but a separate offset known as the Government Pension Offset can apply if you have a pension from a job in which you didn't pay into the Social Security tax system. The Windfall Elimination Provision doesn't apply if you paid Social Security tax on more than 30 years of what the federal government considers "substantial earnings.
Use this table to find the amount the Social Security Administration considers to be substantial earnings for each year since The Government Pension Offset applies in most cases where a public pensioner is claiming spousal or survivor benefits. It's the harsher of the two penalties, said Arnett. The spousal or survivor benefit is reduced by an amount equivalent to two-thirds of the pension. That interplay makes it worth crunching the numbers on whether it's more advantageous to claim your own benefit or a spousal benefit.
But there are some exceptions where the Government Pension Offset does not apply, such as workers receiving a government pension from a military reserve service that doesn't pay into Social Security, she said.
Whatever your particular situation may be, it if is complicated by disability or you have public pension benefits, check with a financial advisor who has expertise in Social Security claiming strategies to maximize your retirement income.
Skip Navigation. VIDEO Personal Finance. Your Money, Your Future. When to file for Social Security retirement benefits early.
Social Security offers a 'Viagra college fund'. Once you confirm that subscription, you will regularly receive communications related to AARP volunteering. In the meantime, please feel free to search for ways to make a difference in your community at www. Javascript must be enabled to use this site. Please enable Javascript in your browser and try again. Now Reading:. Membership My Account. Rewards for Good. Share with facebook. Share with twitter. Share with linkedin.
Share using email. Keep in mind Changes in the amount of a non-covered pension generally do not affect the Social Security benefit. However, if that pension is suspended and you are no longer entitled to it, Social Security may be able to increase your benefit.
Pension income does not count against the Social Security earnings limit , regardless of the pension's source.
0コメント