Will someone PLEASE tell me how Long Term Disability will affect my Social Security Benefits??
I can’t tell you how many times I have found myself in the position of having to explain how a person’s Long Term Disability program will affect their Social Security disability benefits. I have seen more people PISSED off, angry, and upset because they didn’t have a full appreciation of how that program would affect their benefits.
With that being said, let me give you a few tips that may help you out along the way:
1) If you don’t know BEFORE you sign up, Call your carrier and ASK!!
If you’re thinking about applying for Long Term Disability, check with your carrier and find out how your LTD program will be affected by Social Security. It’s important to have this information available to you in the very beginning.
2) If you have signed up and you don’t know, Call your carrier and ASK!!
So many times, people will start the process of applying for Social Security and think that their LTD benefits and SSD benefits will go ‘hand and hand’. Don’t let yourself get caught off guard. Ask as soon as possible.
3) It sucks but you may have to reimburse them.
I hate to be the bearer of bad news but some LTD policies require you to reimburse them if you receive monies during the same time they are paying you. You might want to know that ahead of time.
4) It stinks even more but your LTD benefits may be reduced after you get disability benefits.
Be careful. Sometimes, you are sitting over there doing the NEW math and thinking that you will get money from LTD and your SSD. This point may be true but it is possible that they may reduce your benefits to account for the SSD money you are getting so you need to be ready.
5) It stinks the MOST but your LTD benefits may STOP after you get disability benefits.
OOOOOOO, this is point that makes people HOTTER than fish grease. Let’s say you’re getting $1000 a month in LTD benefits and then a year from now, you start getting $1200 in SSD. So in your mind, you’re thinking “BAM! $2200 a month? We ROLLING!”. And then what happens? you are only getting $1200! Say what? Who bumped their head? Well, it might have been you if you haven’t checked your policy and your policy has a provision that STOPS your LTD once you get your SSD.
6) They want to know about the status so get READY or you may have problems.
I know this will get on your nerves but they are going to want to know REGULARLY about your SSD process. For some policies, if you don’t have an active claim, you don’t get any money.
7) Don’t wait until AFTER you get your benefits to contact your LTD carrier to find out how it will be affected.
Most people get the SHOCK of their life because once they have gone through the 2 years or so of waiting for your SSD benefits and you think it’s cool and then BOOOOO YAAA! you get your SSD benefits. your back pay goes to your LTD carrier and you stop getting LTD checks. NOW, you are mad and don’t want to do. Unfortunately, you may not be able to do anything.
Now, don’t get me wrong. LTD programs are AWESOME! THey provide some well needed money when you’re sitting over there waiting on the SSA process to unfold. Just recognize this point. The LTD program may not be designed (depending on your policy) to keep you covered forever so you need to EDUCATE yourself about what it covers so you don’t get surprised.
How come I get disability from other sources but not Social Security Disability?
I know you’re fired up. You can’t seem to understand why you are applying for Social Security and your Long Term Disability or your VA benefits or your State Disability benefits or your Workers Compensation has already been approved. It’s an OUTRAGE! Right? Isn’t it??
Uhhhh, NO! But wait a minute, does it help? If my LTD carrier has approved me, shouldn’t I get Social Security right away?? What about the VA? They are federal, too. Shouldn’t that matter? Does it matter? Huh? What??
Uhhhh, NO!
Ok, now that I have done a thoroughly effective job of throwing water on the fire, let me give the ‘down and dirty’ about other disability programs and Social Security:
1) Getting Disability from another source does NOT guarantee approval for Social Security
It is important to know from the beginning that the Social Security Administration is not BOUND by any disability determination by another agency. In other words, just because someone has determined that you are disabled, doesn’t mean that Social Security has to make the same decision. Most people don’t realize that each agency uses a different standard to determine disability.
2) Getting disability from another source may be helpful to your Social Security case.
The nice thing about other disability sources is that they are usually very medical intensive. They go through a lot of steps to get doctors to complete forms, give opinions, or give assessments. This information can be beneficial to your case.
3) Getting disability from another source may be harmful to your Social Security case.
It’s also important to remember that any statements made against your interest. For instance, if a doctor completes a form for a Long Term Disability carrier saying that your condition will only last 9 months and you should return back to work, this goes against SSA’s requirement that your condition keeps you out of work for 12 months or more.
4) If you have the opportunity to apply for something else, IN ADDITION, to Social Security, you should.
However, if you have the opportunity to apply for LTD, STD, VA, WC, or any disability type program while you’re waiting for Social Security, you should. Why? For one, they tend to approve or deny faster. Two, if you get approved, you will have money coming in while you wait. Three, any paperwork used here can be forwarded to Social Security.
5) Make sure you let Social Security know that you are applying (or that you have been approved) for other disability programs.
I hate to say this so don’t think I’m being a smart ass but Social Security workers don’t have ESP and they can’t read minds. If you don’t tell them that you are applying for another disability program or that you got approved, they won’t know.
Remember, Social Security disability is a lengthy process so anything that you can provide to improve your opportunities may be helpful.
The little things that may affect your Social Security Benefits AFTER you win your case
Watch out dere now! It’s PARTY TIME! You’ve applied for disability benefits. Now, after several months or several years of forms, doctor’s appointments, questions/answers, and waiting, you have FINALLY been approved. YAAAAY!! It’s amazing how people are so dedicated to doing what it takes to get their benefits. After a long and stressful process, you have finally arrived.
Now here the comes the song you’ve been waiting for, “MONEY, MONEY, MONEY!!!”.
However……………………….
Here’s the part of the process that usually throws people off. People don’t realize that there are ALOT of ‘little things’ that may effect not only HOW MUCH money you will get but it may also effect if you get any AT ALL!!!
Before you get ‘Coo Coo for Cocoa Puffs” and start counting all that “CHEDDAR” you THINK you’re going to get from the Disability process and all of that back pay, here’s a few things that you need to remember so you don’t get your feelings hurt:
1) WARRANTS. Most people know that if you’re in jail or incarcerated, you’re not entitled to benefits. What most people don’t know is that if there is a WARRANT for your arrest, this warrant has the same effect as if you were arrested. So what does that mean? That means if there is a warrant for your arrest, the Social Security Administration may not administer your benefits until you get that Warrant resolved. Get it fixed or no money for you.
2) CHILD SUPPORT. Please don’t sit over and think that just because you are disabled, you are exempt from paying your child support. Even more so, if you owe BACK child support, most states have arrangements through their Department of Revenue and the Social Security Administration to garnish some of your back pay. So if you’re thinking you’re going to get a JAMMING back pay check but you owe child support, your check may be smaller than you think.
3) WORKERS COMPENSATION. Workers Compensation cases and Social Security Administration cases tend to go hand and hand. However, in some instances, if the combined amount of mothly amount of your WC benefits and your SSA benefits is greater than 80% of your Average Current Earnings, you may see a REDUCTION in your benefits to compensate for the difference.
4) VETERANS BENEFITS. Veterans benefits fall into two separate categories: Service Connected and Non Service Connected. If you are receiving Service Connected benefits, you may not see an impact on your Disability Insurance Benefits (SSI is totally different. Go to Bullet 15 for a discussion). However, if the benefits of the VA are NON service connected, these benefits may possibly reduce the amount of DIB benefits you’re entitled to receive.
5) LONG TERM / SHORT TERM DISABILITY BENEFITS. This portion is usually very tricky because every Long Term / Short Term Disability policy is different. It’s important to ask your disability carrier what impact receiving SSA benefits will have on your LTD/STD policy. For some policies, it’s a one to one reimbursement. This reimbursements means if they were paying you during months when SSA should have been paying you, they want their money back for that period. So, for instance, if your LTD/STD carrier was paying you $1000 a month from Jan. 2008 to Jan. 2009 and you get SSA benefits retroactive from Jan. 2008 in the amount of $1200, your carrier MIGHT require a reimbursement for the same time period. Check your carrier just to make sure.
6) WORK & SSA don’t always mix. I always have at least one or two people who want to be slick and try to draw a disability check and work a little bit at the same time. The SSA does allow for what is called “A trial work period” (Please comment if you want me to discuss that in greater detail). However, after a certain period of time, SSA may wonder if you are REALLY disabled or not.
7) MEDICARE. If you’re getting Social Security Disability, you may be entitled to receive MEDICARE. Medicare is NOT free. A small portion of money is taken out of your check every month in order to pay for your medicare. If you choose to NOT take it and ask for it later, you may face a penalty.
CDR. For those of you who don’t recognize this acronmym, it’s called a CONTINUING DISABILITY REVIEW. It’s like this, Social Security doesn’t expect you to be disabled FOREVER so they are going to come back at some point in time (Usually more than once) to determine if you are STILL disabled. If you’ve gotten better, your check may STOP!
9) FEDERAL DEBTS. Recognize, if you OWE the federal government some money, they gonna GET their money. Don’t think that the government will totally excuse your debt because you’re on disability.
10) SOCIAL SECURITY FRAUD. Most people bust their butts in order to properly demonstrate that they are disabled. However, there are a FEW people out there who are trying to get their HUSTLE on! Recognize that Social Security has a department dedicated to investigating fraud. As such, if you are attempting to defraud Social Security, don’t think you won’t get caught.
11) WINFALL. Now, this particular point really applies more to Supplemental Security Income. A WINFALL is when you get a big lump sum of money unexpectantly. This money could be an inheritance, a settlement, or even the lottery. Now, you’re sitting there with a monthly check and a big sum of money and you’re thinking, BOOM, I’ll just live on my monthly SSI check and ride out with my money in the bank. Unless you have your LUMP SUM of money in some type of special needs trust, that money will be counted against your SSI. What does that mean? THis means until you spend the money down to a particular amount, SSI won’t pay you a DIME!
12) SUSPENSION / TERMINATION. Some of the things that I am addressing may result in your disability benefits being temporarily discontinued. This process is called SUSPENSION. SSA may suspend paying your benefits until you have resolved whatever issue that is effecting your case. However, this suspension is not permanent. If you have not resolved your siutation after a certain period of time, SSA may terminate your benefits. What does that mean? You have to start over!
13) REPRESENTATIVE PAYEE. This portion doesn’t have to focus so much on how much you get paid as much it focuses on WHO is responsible for your money. If you’ve had issues with money in the past, or some psychological issues, or some cognitive issues due to significant pain medications, or you’ve had problems with drugs and alcohol, SSA may determine that someone else needs to handle your money.
14) DEDICATED ACCOUNTS. These accounts are typically utilized in kids ‘ cases. These accounts are tricky because if SSA determines you need to set one up, the requirements for maintaining these accounts are very detailed. You have to be very careful as to what you spend the money.
15) SSI & everything. Most people don’t realize that SSI is a “NEED BASED PROGRAM”. In other words, if you have money coming from other sources, you don’t NEED the money from SSI (and this includes other SSA disability programs).
16) LUMP SUM MAY NOT BE LUMP SUM. Ok, here’s the tricky part. Most people don’t realize that even though you may win your case, you may not get as MUCH money as you think. Here’s an example. Say, you applied for SSI benefits on Jan. 1, 2009 for the first time but you said you had been disabled since Jan. 1, 2005. So SSA approves you. So you think you’re getting all the way back to Jan. 1, 2005, right? WRONG! SSI only pays from the date of the application so your lump sum would be from Jan. 1, 2009 to the present. Let’s use the same example but you applied under DIB. Under the DIB program, you’re entitled to go back before the date of the application. So you think you’re getting all the way back to Jan. 1, 2006, right? WRONG!! DIB only pays up to one year before the application so at best, you’re going to get money from Jan. 1, 2008 to present.
17) COUNTY REIMBURSEMENT. Some Counties, in an attempt to work with those persons who are unable to work, have arrangements with the Social Security Administration. As a result, if you find yourself receiving some type of housing assistance, SSA may automatically deduct money from your benefits (typically the SSI benefits) in order to ensure the County is reimbursed.
18) JAILS / PRISONS. As I stated above (Bullet #1), if you’re incarcerated, you are not entitled to receive SSA benefits. This point gets tricky if you find yourself being arrested because you may not have time to notify SSA. It’s important that your loved ones notify SSA as soon as possible because if you come out and you are still getting benefits, you may owe the government for the time you were incarcerated.
19) APPEALS OF PARTIALLY FAVORABLE DECISIONS. Partially Favorable Decisions or PFD are decisions by the Social Security Administration. These decisions are the governments way of saying that you are disabled but not for the length of time or time period that YOU think you are. You have the right to appeal this decision if you don’t agree. If you do, 3 things can happen. One, you can win and get the entire period you asked for in the beginning. Two, you can lose and SSA and social security will leave your benefits the way they are. Three, SSA can determine that they were wrong and that you were never entitled to benefits. This part is really tricky because if SSA thinks you should have been awarded benefits to begin with, you may have to reimburse SSA for everything they gave you.
I know I covered alot of information but I spend alot of times explaining to people why their benefits are impacted after they’ve gone through a lengthy process to get them. I hope this helps you.
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