How to Determine if I am Eligible for Social Security when Collecting Private Disability
I am prohibited from giving legal advice. If you are receiving disability benefits under a private insurance plan there is no offset of your Social Security benefits, but your private insurance benefits may be reduced by the amount you receive from Social Security. Most
long-term disability plans have an offset provision for Social Security Disability benefits. This means that the disability insurer guarantees a total monthly benefit, but requires the employee to file a claim for SSDI. The monthly benefit payable by the insurance company is reduced by
any benefit payable to the employee under SSDI. If you have been getting private disability payments while awaiting your decision from Social Security, you will have to pay the insurance company with the back (retroactive) Social Security check. If you had an attorney on your
Social Security claim who charged you a fee, you will not have to pay that portion of the retroactive benefits to the insurance company.
If you are getting workers' compensation benefits under the laws of any
state, your disability benefits under Social Security for Title II
disability will be reduced according to a formula known as an "offset".
This is true also for most settlements for lump sum payments under state
workers' compensation laws unless special language is used in your
workers' comp. settlement contracts.
Anticipate a gap in your medical coverage if you are awarded SSDI
benefits. You are not entitled to insurance through Medicare for two
years after receiving SSDI payments.