If you become disabled, you may require funding from multiple sources to cover your medical treatment, long-term care and life expenses. These funds can include settlements from your Michigan employer, workers’ compensation benefits, Social Security disability or numerous other sources. But you are likely quite aware that certain income sources, such as part-time jobs, can affect the amount you are granted under Social Security disability. So just how do certain payment sources affect your benefits?
You will be happy to know that SSA.gov clarifies that sources such as private insurance benefits or personal pensions do not affect your Social Security disability eligibility and payouts. However, if you receive workers’ compensation payments or other public disability payments, your Social Security may be affected if those payments exceed 80 percent of your average current earnings before you became disabled.
This means that you must be able to prove through adequate documentation both your prior income and that your current payments from sources outside Social Security do not exceed that specified amount. The types of payments that may affect your benefits include public state and federal benefits such as Michigan state temporary disability benefits, civil service disability benefits and state or local disability-based retirement benefits. However, your Social Security is not affected if you receive veterans’ benefits, SSI or if you receive state or local government benefits if Social Security was deducted from your earnings.
Please consider this post an informational resource only, and do not consider it a substitute for appropriate legal counsel.