Benefits Highlights

Did You Know That In Some Circumstances, Receiving Early-Reduced Retirement Might Be More Advantageous Than Receiving SSDI?

Workers Compensation Offset Situations

In most states, if an individual receives a Worker's Compensation benefit and an SSDI benefit, the SSDI can be reduced due to the Worker's Compensation. If an individual receives Worker's Compensation and is over age 62, however, that individual may choose to apply for early retirement. If the individual applies for early retirement, then that individual's benefits will be permanently reduced for any months of Retirement Insurance Benefits received prior to full retirement age, but the retirement benefits would not be reduced by the Worker's Compensation Offset.

If the individual elects not to apply for retirement, and thus keeps SSDI, then the SSDI payment would switch to retirement at full retirement age, and the offset would end then.

Family Maximum Situations

Another situation that may have an individual switch from SSDI to Retirement Insurance Benefits could be the amount of the total family benefit, or Family Maximum. The calculation for the family benefit is more generous for retirement. It might be possible, therefore, if children and/or a spouse are involved, that the worker may elect to apply for retirement to increase the amount that other family members may receive.

Notes About Switching

• A worker can switch from SSDI to retirement or from retirement to SSDI more than once.

• Becoming entitled to Retirement Insurance Benefits does not terminate entitlement to SSDI, nor to Medicare.

• At the point the individual reaches full retirement age, the individual's benefit will be adjusted to reflect the number of months the individual received reduced retirement instead of SSDI. Once that occurs the reduction is permanent.

• DI 52001.115 - Considering The Retirement Insurance Benefit (RIB) Option

• RS 00615.110 - Reduced RIB as Affected by DIB (A HA)
  

If you have other acronyms that you would like me to include in future installments, please send them to my direct email address: Terri Uttermohlen

If you are looking for past Benefits Highlights postings, you will find them in news and benefits highlights.