Can you collect a pension and social security disability simultaneously? This is a question that many individuals facing retirement or long-term disabilities often ponder. Understanding the rules and regulations surrounding these two forms of financial support is crucial for making informed decisions about your financial future. In this article, we will explore the possibility of collecting both a pension and social security disability, as well as the factors that may affect your eligibility for these benefits.
Social security disability (SSD) is a federal program designed to provide financial assistance to individuals who are unable to work due to a medical condition that is expected to last at least one year or result in death. To qualify for SSD, applicants must meet certain criteria, such as having worked and paid into the social security system for a specified period.
On the other hand, a pension is a form of retirement income provided by an employer or a pension plan. It is typically based on an individual’s salary and length of service. Pensions can be private, public, or a combination of both, and the eligibility requirements vary depending on the plan.
The question of whether you can collect both a pension and social security disability is not straightforward. According to the Social Security Administration (SSA), you may be eligible to receive both benefits, but there are some limitations. Here’s a closer look at the factors that come into play:
1.
Eligibility for SSD: To collect SSD, you must meet the SSA’s eligibility requirements, which include having a medical condition that meets the definition of disability and having worked and paid into the social security system for a sufficient amount of time.
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Pension eligibility: To receive a pension, you must meet the specific requirements set by your employer or pension plan. This may include reaching a certain age, having worked for a specific number of years, or meeting other criteria.
3.
Income restrictions: If you collect SSD, there may be income restrictions that limit how much you can earn from other sources, such as a pension. The SSA’s earnings test determines the amount of income you can earn before your SSD benefits are reduced. For individuals who have reached full retirement age, there are no earnings limits, but for those under full retirement age, the limit is $18,960 in 2021. For every $2 you earn above the limit, your SSD benefits are reduced by $1.
4.
Offsetting SSD benefits: If you receive a pension from a government or church plan, your SSD benefits may be offset. This means that a portion of your SSD benefits may be reduced to account for the pension income you receive. However, if your pension is from a private employer, there is no offsetting, and you can collect both without any reduction in your SSD benefits.
In conclusion, it is possible to collect both a pension and social security disability, but it depends on the specific circumstances of your situation. To determine your eligibility and understand the potential income restrictions, it’s essential to consult with a financial advisor or the SSA. By doing so, you can make informed decisions about your financial future and ensure that you are maximizing your benefits while adhering to the rules and regulations set forth by the SSA.
