The days of people collecting Social Security disability and unemployment compensation at the same time may be coming to an end.
In July of 2013 the chairman of the Ways and Means Subcommittee on Social Security introduced a bill in congress that would keep people from receiving Social Security disability and unemployment payments at the same time. U.S. Rep. Sam Johnson, R-Texas said he believes that the two programs, Social Security disability and unemployment, contradict each other, so people should not be able to collect both at the same time.
When a person applies for unemployment they are indicating that they are physically able to work, but applicants for Social Security disability are claiming just the opposite, Johnson said.
“Even though disability benefits are for those who can’t work and unemployment benefits are for those who can work, under current law someone can receive both benefits at the same time. That just doesn’t make sense,” Johnson said.
The bill that was introduced is not just a Republican idea. President Barack Obama proposed a similar idea in his Fiscal Year 2014 budget. That proposal estimated that eliminating concurrent Social Security disability benefits and unemployment payments would save about $1 billion over 10 years.
“President Obama agrees and in his budget, he included his own proposal to stop the double dipping. When we agree, we should act,” Johnson said.
Currently, unemployment benefits are not counted under Social Security’s annual earnings test and do not impact benefits, but by receiving Social Security benefits it could impact your unemployment benefits. If you are receiving both Social Security disability benefits and unemployment benefits, Social Security recommends you contact your state unemployment office for information on how your state might apply any reduction.
For more information about how Social Security disability benefits and unemployment benefits received at the same time can impact you click here.
