SSDI (Social Security Disability Insurance) is a federally-sponsored program that pays benefits to those who are otherwise qualified but cannot work any more. To receive these benefits, a person must be covered under the program, and they must meet the SSA’s definition of disability. Benefit amounts are based on covered earnings (those on which a worker paid SS taxes) before the disability occurred. However, benefits can be reduced if a worker receives disability pay from sources such as worker’s compensation.
Calculating SSDI Benefits
The Social Security Administration uses the AIME (Average Indexed Monthly Earnings) and PIA (Primary Insurance Amount) to calculate a worker’s benefits. The formula used by the SSA is very complex, and most cannot come up with a number on their own-;but the William D. McGillicuddy Law Office, PC. can help. To get an idea of your monthly benefit, we’ll use 2013’s numbers. The average monthly payment is a little over $1100, but recipients can get up to $2500.
Disability Back Pay
By the time a worker’s SSDI claim is approved, most can receive back payments. The number of these payments a worker will receive depends on the date of application, and the date from which the SSA decides that the disability started. The back pay amount also depends on the regular monthly benefit level.
Not only can workers get benefits retroactive to their application date, they can get up to a year’s worth of payments for the 12 months prior to the filing. However, recipients cannot get payments for the time before the established onset date (EOD).
The Waiting Period
Once a person’s SSDI claim is approved, there is a five month waiting period that starts at the EOD. To receive the maximum retroactive payment, a worker’s EOD must be at least 17 months before the application or protective filing date.
Disability Income Offsets
Some disability payments, such as those from worker’s compensation, can reduce the SSDI benefit in a process called “offsetting”. Most other disability pay, such as that from private insurance or veteran’s benefits, does not affect the monthly payment.
COLA (Cost of Living Adjustment)
Every year, recipients’ SS benefits are recomputed to compensate for the higher cost of living. COLA amounts are connected to CPI (Consumer Price Index) increases. Your SSDI Attorney in Newburgh NY can tell you more about the COLA and how it affects the amount received each month. Connect with us on Facebook!