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.
How does getting a lump sum of money affect my Social Security Benefits?
This topic can be really scary. You know the deal. You’ve busted your butt for weeks and months and maybe YEARs to get your disability benefits. Now, all of sudden, you find yourself in a position where you get a lump sum of money and you don’t know what to do.
The lump sum could be anything. It could be an inheritance. It could be a settlement. It could be a gift. How do you determine if you should tell Social Security about the money and what should you do?
Here’s a few things to consider:
1) Remember, Social Security is the federal government and the FEDERAL GOVERNMENT ALWAYS FINDS OUT!!
WHY?! WHY!? WHY are you going to try and run dirty with the federal government, man?? People don’t realize how many things are connected to their social security number. So if you get a ‘windfall’ (like the lottery, or a settlement, or inheritance), there is a PRETTY good likelihood that this information will be reported to the federal government. The information may be reported for tax purposes but if you’re on disability, you better believe that it’s going to filter down to the appropriate agencies.
2) Understand what Social Security disability program you are on.
Most people don’t realize that Social Security has several Disability programs. These different programs require you to be found disabled. However, each program has different requirements when it relates to money and income.
3) There’s a difference between REDUCTION, SUSPENSION and TERMINATION
Depending on the program, your benefits could be reduced because of the amount of money that you receive or the TYPE of money that you receive. Also, for some disability programs, your benefits could be suspended if you receive a lump sum of money. However, this suspension typically remains in effect until you spend all of the money down to a particular dollar amount. Once you have spent the money, you should notify the Social Security Administration so they can reinstate your benefits. Now, keep in mind this point. If your benefits are suspended for more than a year, Social Security will terminate your benefits. In other words, you will have to start over from scratch.
4) Call the Social Security Administration, don’t try to figure it out.
So many times people will receive a lump sum or they know a lump sum is coming so they freak out and are afraid to call Social Security. Under most of the disability plans, you probably won’t have a problem. However, it is much easier to alert Social Security BEFORE than after THEY find out.
5) If you get Workers Compensation or Veterans Benefits, make SURE you understand how they affect your benefits.
Let’s say that while your Social Security disability benefits was coming, you finally SETTLE a big Workers Compensation claim that you had going for a while. MAKE sure you have someone explain to you how your workers compensation benefits may cause an offset or reduction of your benefits. The same is true for Veterans Benefits. Some of the Veterans Benefits programs can count against your Social Security.
5) If you owe SSA money, they will get their money back.
If you get a lump sum of money and, if you know you are, CONTACT Social Security. Don’t wait around. If Social Security determines that you received money from them that you SHOULDN’T have received, they will take it out of your disability check and that is NOT a pretty picture.
6) Be careful if you’re on SSI
The program that is most effected by by WINDFALLS is “SUPPLEMENTAL SECURITY INCOME or SSI”. SSI is the program that is NEED BASED. It’s like a welfare program. So if you are getting SSI and then you get a lump sum of money, your benefits may be affected. Your benefits could be reduced or suspended.
7) If you get a lump sum, keep a check on your documents
Keep a record of the items you are spending your lump sum. This way if Social Security makes a big fuss about where the money went, you can show them.
Getting disability benefits is a long and tough process. Keeping those benefits may be tougher if you find yourself in a position to receive a lump sum. However, if you’re smart and pay close attention to detail, you should be able to navigate through the process with little issue.
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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