I meet with many individuals that are between the age of 62-65, and do not realize that they are able to pursue Social Security Early Retirement benefits and Social Security Disability Insurance benefits at the same time. These individuals normally assume that these programs are mutually exclusive, and that a decision has to be made to pursue one program or the other. In fact, the Social Security Administration will let individuals apply for both programs simultaneously.

There are some important reasons why individuals that are eligible for early retirement should consider applying for both programs; however, it is also important to know that there can be a negative impact on your Social Security payments if you are ultimately found not disabled.

What Happens when I Accept Early Retirement from Social Security?

When you elect to receive your Social Security Retirement at age 62 you are receiving a 25% reduction in your retirement benefit if you were born between 1943 and 1954. [See Social Security Administration’s Retirement Benefits by Year of Birth Page for reduction based on other years of birth.] This is a permanent reduction if you elect to start retirement at age 62. This means that if your full retirement benefit at 66 would be $1,000 per month, you will only receive $750 per month (for the rest of your life) if you retire early.

How Does Disability Impact My Early Retirement?

The exception to this lifelong reduction is if the Social Security Administration determines you are disabled at some point before you reach full retirement age. If you are found to be eligible for Social Security Disability and your payments start retroactively prior to the date you actually began receiving reduced retirement, your early retirement application is effectively withdrawn. The Social Security Administration will pay you the difference between your reduced retirement and your full Social Security benefit for each month that you have already been paid, and you will receive your full payment for each month going forward.

Example

For example, let us assume that an individual named John Smith was born on January 1, 1948. He turned 62 on January 1, 2010. John stopped working because of his health condition on May 2, 2009. Since he was unable to work, he applied for early retirement on January 1, 2010 when he turned 62. John’s full retirement rate is $1,000, but since he elected early retirement at 62, he is only entitled to $750 per month in retirement benefits. [If John is found disabled, he receives payment at his full Social Security rate of $1,000 per month]

Now since John has the necessary quarters of coverage for retirement, he is eligible to begin retirement benefits immediately when he turned 62. John is informed that he can also apply for disability since he stopped working because of a medical impairment that prevented him from continuing to perform work. John applies for Social Security Disability Insurance and alleges that his disability began on May 2, 2009.

The Social Security Administration determines on June 6, 2010 that John is disabled, and that his disability began on May 2, 2009. John is entitled to start disability payments in November 2009. He has already received early retirement benefits from January 2010 until May 2010. Since he was found disabled, he is entitled to his full Social Security rate of $1,000 per month. The Social Security Administration will pay John $1,000 for November and December 2009, and will pay him $250 per month from January 2010 until May 2010 (since he already received $750 per month from early retirement). His early retirement benefits will stop effective June 2010, and John will receive only his disability check of $1,000 per month going forward.

Since John was found entitled to Disability benefits prior to the date that his early retirement began, there is no reduction in his Disability payment. Even when John turns 66, he will continue to receive his full Social Security rate as long as he remained disabled until he turned 66. The benefit to John is that he received payments from January 2010 until May 2010 while he was waiting for his disability application to be decided. This would be important to John, because otherwise he would have no income during that period.

Warning

It is important to remember that if the individual in the example above had not been approved for Social Security Disability Insurance, he would have received the reduced retirement rate for the rest of his life. Individuals that are eligible to begin Early Retirement and apply for Disability should always remember that there is no guarantee that they will be approved for Disability benefits. If you do not want to risk receiving reduced retirement benefits for the rest of your life, then you should simply apply for Disability benefits if you are between the age of 62-65.

The second warning is that the Social Security Administration could determine that your disability began at a later date. If John had not been found disabled until May 2, 2010, his disability benefits would not begin until November 2010. Since he began retirement payments in January 2010, there would have been 10 months that he only received early retirement benefits. John would begin receiving disability benefits in November 2010, but his disability payment amount would be reduced by the number of months he already received early retirement. When John turns 66, he would have a permanent 10-month reduction on his retirement benefits.

In other words, when he turned 66, the Social Security Administration would pay John at a rate as if he had retired at age 65 and 2 months. For an individual born in 1948, starting benefits at age 65 and 2 months would result in a permanent reduction of 5.6%. John’s disability benefit and his retirement rate at age 66 would then be reduced to $944 per month. [Please see the Social Security Administration’s Retirement Benefits by Year of Birth Page for information about early retirement reduction rates based on year that you were born. See POMS RS 00615.110 for more information about benefit reductions when entitled to both Social Security Retirement and Social Security Disability Insurance Benefits.]

What to Remember

It is important to understand what your options are if you are eligible to apply for both disability and early retirement. Prior to pursuing both retirement and disability benefits, it is normally a good idea to speak with someone that has knowledge of the interaction between the two programs. If you decide to proceed without the assistance of an attorney, ask the Social Security Administration to run through scenarios with you of what will happen if you are found disabled on the date that you stopped working, but also if you are not found disabled until a later date, or if you are never found disabled.

It is also normally a good idea to consult with a financial planner when deciding how to proceed with early retirement benefits. A financial planner will be able to review the positive and negative consequences of receiving retirement payments at reduced rate.

This article was written by Steven Butler. Steven is a partner atLinarducci & Butler, PA and his practice is limited to Social Security Disability/SSI claims. Steven offers free initial consultations for Social Security Disability/SSI claims. To schedule a consultation with Steven, please use the Linarducci & Butler Contact Form or call 302-613-0707 to schedule an appointment.

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Episode 6 of Social Security Disability Law Weekly Podcast includes discussion of: importance of local attorneys in Social Security Disability Claims; use of an iPad in Administrative Law Judge Hearings; don’t blame the messenger when unpleasant information is communicated about your disability or SSI claim; Social Security Denials Remain High in Delaware; impact of disability on Social Security Retirement benefits; and concept of medical record lag in Social Security claims. Download Episode 6 or press play below to listen in your browser.

Show Notes: Social Security Disability Law Weekly Podcast Episode 6

• Subscribe in iTunes (subscribe in iTunes)

This Week’s Topics:

• Off Topic
  • Support local attorneys – discussion of advantages of having a local attorney
  • Is my attorney using an iPad?
• Issues during my week in practice
  • Don’t Blame the Messenger!
    • Finding out that you don’t qualify for Social Security disability can be difficult, but it is important to remember that the person communicating the message to you isn’t the one making the rules.
• Social Security News (Discussion of Topics Reported in the News and Blogs this Week)
  • Social Security Denials Remain High by Mike Chalmers of the Delaware News Journal
    • Further discussion of the relatively high denial rate for Social Security disability claims by Delaware Administrative Law Judges
  • Social Security Disability Benefits at Retirement Age by Scott Lewis of Indiana Social Security Disability Lawyer Blog
    • Description of what happens when you reach retirement age and are on disability
    • Reminder to consider loss of benefit when on Early Retirement instead of disability
  • The Medical Records Time Lag by Gordon Gates of the Social Security Disability Lawyer Blog
    • More complete medical records can help you win your claim

Closing Credits:

• Contact Steve Butler to Discuss Social Security Disability Law Weekly
  • DelawareDisability.com Contact Form
  • Email: Steve@SSAlaw.us
  • Twitter: @DisabilityGuy
  • Facebook: http://facebook.com/SSALaw

I hope you enjoyed the sixth episode. Please feel free to give me any feedback for improving future episodes. If you enjoy the podcast, you can subscribe in iTunes.

Social Security Disability Law Weekly is a podcast devoted to issues in Social Security Disability Law. Discussion is focused on Social Security Disability Insurance and Supplemental Security Income payments. Social Security Disability Law Weekly is hosted by Steven Butler of Linarducci & Butler, PA.

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From my experience in Social Security Disability, I have learned that the Unions that represented employees at each of these plants had done a great job of protecting workers. Despite serious medical limitations, many employees were able to maintain their employment thanks to accommodations that were made for them. With the disappearance of the large manufacturing sector in Northern Delaware, is unlikely that many of these individuals will be able to obtain competitive work despite the skills they have acquired over their lifetime and their long work history. Even if many of these workers find alternative employment, without the protection of the Union, it will be more difficult for those with medical limitations to maintain work.

It is important that individuals age 50 and over consider Social Security Disability Insurance Benefits if they have become displaced because of a plant closing. If you are over the age of 50, the Social Security Administration Disability Regulations require that greater attention be paid to the work that you performed in the past. It is much more likely that an individual over the age of 50 will be approved for Social Security Disability Insurance if they have performed skilled physically demanding work in the past. The main consideration will be on whether you can perform the same type of work you did in the past. (If you are under 50 you are only disabled if you are unable to perform all full-time work).

Normally, individuals that have performed work on an automobile assembly line or at a refinery have a much better chance of being approved for disability benefits than individuals that have performed less physically demanding work. If you are experiencing difficulty finding work since you have become unexpectedly unemployed, it is important that you consider an application for disability benefits if you have a medical condition or conditions that limit your ability to perform work in any way.

My office is available for free consultations for individuals that have been displaced from manufacturing work and have been unable to obtain alternate employment because of physical or mental disabilities. It will be important that you are able to describe your physical and mental limitations, and that you can describe in simple terms how your condition limits your ability to sit, stand or lift. It is also important that you have regular medical treatment for your medical condition or conditions.

Social Security disability insurance is an entitlement program that you pay into when you are working and have taxes withheld from your paycheck. Unfortunately, many people that lose manufacturing jobs and are over the age of 50 do not recognize that they may qualify for these benefits. If you are considering collecting early retirement or you are unable to continue to work and are over the age of 50, I would strongly advise that you also determine if you qualify for Social Security Disability Insurance.

Related Posts:

• Social Security Disability Insurance as an Alternative to Early Retirement
• Information Needed at Initial Consultation Appointment for Social Security Disability/SSI
• The Initial Consultation Appointment for Social Security Disability/SSI Representation
• 10 Things to Know Before Applying for Social Security Disability

This article was written by Steven Butler. Steven is a partner at Linarducci & Butler, PA and his practice is limited to Social Security Disability/SSI claims. Steven offers free initial consultations for Social Security Disability/SSI claims to residents of Delaware, Maryland, New Jersey and Pennsylvania. To schedule a consultation with Steven, please use the Linarducci & Butler Contact Form or call 302-613-0707 to schedule an appointment.

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The majority of individuals that seek the assistance of an attorney do not qualify under medical listings. Instead they must be able to prove that their medical diagnosis causes limitations that will make it impossible to perform full-time work. If you are under the age of 50, it is not important whether you can perform your past work, just whether you are capable of performing any full-time work based on your limitations.

Generally, you are found to able to perform full-time work if you can stand for a total of at least 15 minutes of every hour during an eight hour work day (for a total of two hours in an eight hour workday), remain seated for a total of 45 minutes out of each hour for an eight hour workday, and have the ability to lift more than 3 pounds of weight on an occasional basis throughout the workday. If your impairment limits your ability to stand for less than a total of two hours during an eight hour workday, it is normally difficult to perform even sedentary work. Additionally, if your impairment causes frequent unscheduled breaks during an eight hour workday, or frequent absences on a weekly or monthly basis, most employers will not tolerate your loss of productivity. Vocational experts generally indicate that if an individual is unproductive for 15% or more of a workday, they are not employable.

For individuals age 50 or older, the disability standard is somewhat more lenient. You must still have a medical diagnosis that will result in limitations in the ability to perform work, but it is possible to be approved for benefits even if there are still jobs that you could perform on a full-time basis. If you are between the age of 50 and 54, and limited to a sit-down job that requires very little skills, generally you are found disabled unless you have performed similar jobs in the past. If you are age 55 or older, it is possible to be approved for benefits even if you can still perform jobs that require standing up six hours or more during an eight hour workday, and lifting up to 20 pounds on an occasional basis. The main question for individuals between the ages of 50 and 64 will be the type of work that they performed in the past, and whether the skills that you have learned from the past work will transfer to easier work. If an individual age 55 and older is only able to perform work with lifting restrictions of less than 20 pounds, and has no transferable skills to work that is consistent with their remaining abilities, generally they will be found disabled.

Before applying for benefits it is a was important that all individuals have treatment for their condition. If you are suffering from an impairment, it is important that it is diagnosed. Simply having aches and pains without a medical diagnosis is generally not sufficient. Social Security considers all physical and mental conditions when determining your disability. If you are experiencing any medical problems, it is in your best interest to discuss those with a doctor and to follow your doctor’s treatment suggestions. Even if you did not stop working as a result of medical condition that you are suffering from, it is important that you have treatment for these conditions and that you disclose your condition to the Social Security Administration.

While pursuing treatment for your condition, it is important that you see specialists for confirmation of your diagnosis, and to obtain suggestions for improvement of your condition. Often, I am unable to offer my assistance to individuals because they have not received sufficient care for their condition. If you are suffering from back pain, arthritis, depression, or any other condition that is preventing you from performing work, it is normally important that you see a specialist for your condition. If there are objective tests to determine if your condition exists, Social Security will normally expect that those tests be performed prior to your application. If your doctor prescribes medications, it is important that you take your medications as prescribed. Failure to follow or comply with your doctor’s instructions can result in a denial for benefits. If you have difficulty following your doctor’s instructions, it is important that you speak with your doctor concerning the difficulties.

For individuals that do not have medical insurance, it is possible to receive treatment through clinics. In Delaware, there are several different low cost physical and mental health clinics that are available. These clinics usually see patients on a sliding scale basis. Information will be asked about your resources and income and the clinics will determine the most that you can pay for the services that are available. Often these clinics are able to provide services to low income individuals free of charge. If you have limited income and resources it is also important that you apply for medical assistance through the state that you live in. If you are below the poverty level, you often will qualify for free medical care through the state you live in. The Medicaid program in the State of Delaware provides better coverage than the majority of health care plans that individuals can purchase on their own. Generally, with Medicaid in Delaware, all doctor and hospital visits are free of charge. Transportation is available at a low cost, and prescriptions are normally less than five dollars.

When you apply for disability benefits, Social Security considers your medical condition and also information that you provide them. It is important that Social Security finds you to be a credible person when you apply for benefits. Social Security looks for inconsistencies in the statements that you provide, and inconsistencies between your statements and statements in your physician’s reports. The use of illegal substances, or the abuse of alcohol can cause problems for you during your application. If your use of illegal substances or alcohol is material to your condition, even if you are disabled, Social Security will deny you benefits. Even if your use of illegal substances or abuse of alcohol does not contribute to your condition, it can still be used as a factor in determining your credibility. If you are using illegal substances, you are breaking the law, and this is a relevant factor when determining if you are believable. Even if you do not disclose information about your use of alcohol or illegal substances, normally this information is found through your medical records.

You cannot begin your application for disability benefits until you are out of work, or your earnings from work have been reduced to a point that you are making less than $980 per month (this is the maximum you can make and still apply for benefits in 2009). Although you can apply for benefits the first day after your employment ends (or your earnings are reduced below the allowable limit), I normally recommend that individuals wait to apply until sufficient proof of their disability is available. Since Social Security must be convinced that your condition will prevent you from returning to work for at least 12 months, or result in death, it is often hard for individuals to be approved if they apply for benefits shortly after employment has ended.

The exception is if you have been diagnosed with a terminal illness. When you have been diagnosed with a terminal illness, it is important to apply as soon as possible. When you apply for a condition that may improve, commonly the Social Security Administration will deny your application even if you are currently disabled. It may be determined that even though you are currently unable to work, your condition is expected to improve within 12 months. Before applying for benefits, I suggest that my clients discuss their options with their treating physicians, make sure that their treating physicians are supportive of their application, and also discuss the expected duration that their condition will prevent them from working. If it is unknown if the condition will result in the inability to work for at least 12 months, I normally suggest waiting to apply until closer to the 12 month mark.

It is always important that you communicate with your physicians throughout this process. You should find out if your doctors are going to support your application for disability, and whether they will be willing to provide information that is necessary to help you be approved. I also commonly ask that my clients have forms completed by their doctors before filing an application for benefits. This gives me a better idea of what your doctor thinks, and allows me to better determine if you have a condition that meets the disability requirements. It is important to communicate with your physicians that you would prefer to work, and that you are only pursuing disability benefits because that is your only option based on your limitations. I always encourage my clients to remind their doctors that they are willing to take any steps necessary to allow them to return to productive work in the future.

Even when everything is done properly for an application for disability benefits, it is a time-consuming process. The average time for a decision in Delaware is between 4 to 7 months on the initial application. Failure to provide all of the needed information to the Social Security Administration can result in delays, and failure to seek necessary treatment can result in a denial. If you are considering applying for disability benefits, I recommend that you contact my office for assistance at the earliest possible time. Although it is possible to pursue disability benefits without the help of an attorney, it is helpful to have an experienced person help navigate you through the process. Please contact my office if you would like a free initial consultation.

Relevant links:

• Social Security Listing of Impairments
• Delaware Medicaid Frequently Asked Questions
• Delaware Low Costs Healthcare Clinics
• Delaware Online Public Assistance/Medical Assistance Application

This article was written by Steven Butler. Steven is a partner at Linarducci & Butler, PA and his practice is limited to Social Security Disability/SSI claims. Steven offers free initial consultations for Social Security Disability/SSI claims to residents of Delaware, Maryland, New Jersey and Pennsylvania. To schedule a consultation with Steven, please use the Linarducci & Butler Contact Form or call 302-613-0707 to schedule an appointment.

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Social Security disability is an entitlement program. Money is withheld from your paycheck when you are working to support the Social Security Disability program. If you are age 50 or over and you have a strong work history (i.e. you have made more than $5,000 per year in five out of the last 10 years prior to your retirement, and you have worked at least 10 years in your lifetime), you probably are insured for Social Security Disability benefits. Social Security Disability is not a welfare program, and you can only qualify if you have actually paid into the system and you have a strong work history. Even if you are already receiving early retirement benefits from the Social Security Administration, you can still file an application for Social Security Disability. Social Security Disability pays you at your full retirement rate and not at a reduced rate such as early retirement.

If you are between the ages of 50 and 54, generally in order to qualify for Social Security disability, you must establish that your medical condition will prevent you from performing your past work, and at most you can only perform a sit-down job that does not require any of the skills that you have obtained from previous work. If you are age 55 to 64, again you must establish that you are unable to perform your past work, but even if you can perform a job that requires standing six hours a day, and lifting up to 20 pounds of weight, as long as none of your skills from your previous work would allow you to obtain alternate employment, you are most likely disabled.

Social Security Disability should be considered for any individual over the age of 50 that decides (or has already decided) to stop work because of difficulty performing the job duties. Individuals that are engaged in physical demanding work, often experience aches and pains from years of physical exertion. Commonly factory workers, construction workers, pipefitters, welders, and other typical union employees experience various injuries over their lifetime that affect their ability to perform work. Although you may not qualify for benefits from your employers (or union) because of the wear and tear on your body, if you have a medical diagnosis that would limit your ability to perform the work, you may qualify for Social Security Disability.

Even if you have already retired, it is important to know your options. Our office is available to help anyone that has already retired or is considering their options. If you are between the ages of 50 and 64 and you have had to stop your work because of physical limitations, please contact our office for a free initial consultation. We will review the Social Security Disability program with you and help you determine if you qualify for benefits. These are benefits you have paid taxes into and it is important that you know your rights and your eligibility. If you qualify for Disability, you also become eligible for Medicare after being on the Social Security Disability Program for two years. If we determine that you qualify, our office can assist you with the application process and the completion of any forms. For further details please contact our office immediately.

This article was written by Steven Butler. Steven is a partner at Linarducci & Butler, PA and his practice is limited to Social Security Disability/SSI claims. Steven offers free initial consultations for Social Security Disability/SSI claims to residents of Delaware, Maryland, New Jersey and Pennsylvania. To schedule a consultation with Steven, please use the Linarducci & Butler Contact Form or call 302-613-0707 to schedule an appointment.

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