Do Pensions Affect SSDI Payments?

Do Pensions Affect SSDI Payments?

Social Security pays disability benefits to people who are unable to work due to a disabling medical condition that will last at least one year or result in death. The Social Security Administration calculates how much an applicant receives based on their age and their work history.

Sometimes the SSA will reduce a benefit amount if you are receiving other types of income, resulting in a smaller Social Security Disability check. Continue reading below to see if any of these provisions apply to you.

How Pensions Impact Disability

Are you eligible for a pension? If so, there’s a good chance that you won’t see any impact on your SSDI benefits. It all comes down to whether you paid Social Security taxes on the earnings that qualified you for your pension.

For private employers and many government jobs, the earnings are subject to a tax withholding for Social Security. In that case, it will not have any impact on your SSDI benefits.

On the other hand, government employers, particularly local and state government agencies are not required to withhold Social Security taxes from employees’ pay. In these situations, the Windfall Elimination Provision reduces a worker’s SSDI benefits.

If you’re a government worker and Social Security taxes were not withheld from your pay, an attorney from our firm can help determine the exact amount of the reduction, as it hinges on a few factors, such as the year that you became disabled and how many years you worked at jobs that you did pay into Social Security.

You can check out the SSA’s table to become more familiar with the agency’s calculations.

To learn more about SSDI and pensions, contact a Dallas Social Security Disability Lawyer from The Zendeh Del Law Firm. We would be glad to answer your questions and streamline the application process for you.