Midwest Disability, P.A. Midwest Disability, P.A. Midwest Disability, P.A.

When Social Security disability payments exceed your prior income

Disability payments from private insurance benefits or private pensions will not affect one's government Social Security disability benefits. That said, workers' compensation and other types of government-sourced disability benefits could affect SSDI levels.

Injured employees can qualify to receive workers' compensation benefits. These workers' compensation benefits might be paid out by state or federal level agencies, or they might be paid by an insurance company or an employer. However, before applying for workers' compensation, it could be important to evaluate how it will affect one's SSDI payments and whether it will be more cost effective to skip injured workers' benefits all together.

In addition to workers' benefits, other kinds of public disability benefits exist that are paid by local, state and federal governments and do not involve work-related injuries. These include state temporary disability benefits and local government retirement benefits.

The general rule of thumb is that total public disability benefits cannot be over 80 percent of one's average earnings prior to disability. Therefore, if the total income amount exceeds this limit, individuals may want to speak with social security benefits attorney to see how their pay is affected. Any change in benefits should immediately be reported to the Social Security administration to ensure that the payment rules are being adhered to.

Finally, individuals who receive a lump sum payment with regard to their disability benefits should immediately consult with an SSDI government assistant to determine how their payments may be affected. Those who inappropriately take more Social Security payments than they are allowed by law could be subjected to harsh legal consequences.

Source: Social Security Administration, "How Workers’ Compensation And Other Disability Payments May Affect Your Benefits," accessed April. 10, 2015

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Midwest Disability, P.A.
408 Northdale Boulevard Northwest
Coon Rapids, MN 55448
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