Many people receiving Social Security Disability Insurance Benefits became disabled due to a work-place injury or had private disability insurance. It is not unusual for a claimant to be eligible for many types of disability-based benefits, but these various benefits affect one another and can limit how much a claimant can receive. The SSA utilizes relatively straight forward rules when determining whether other benefits affect a claimant’s monthly DIB payment.
If a person is receiving DIB payments and other disability payments, the SSA may reduce the DIB benefit if the total DIB payments and other disability payments are greater than eighty percent (80%) of the person’s average earnings. For example, eighty percent of Bob’s average earnings of $5,000 a month would be $4,000 a month. If Bob was receiving $2,000 a month in DIB payments and $2,500 a month in worker’s compensation payments, then Bob’s total monthly benefits income would be $4,500 – which is $500 over eighty percent of his average earnings. The SSA would reduce Bob’s DIB payment to $1,500 a month so that his total monthly benefits equal $4,000.
Not all benefits are included when calculating a person’s total monthly benefits income. Veterans Administration benefits, Supplemental Security Income, and some state or local government benefits are generally not included. Also, worker’s compensation settlements can affect DIB back payments if the settlement and the back payments cover the same period.
