[PHOTO/CAPTION: James Gashel]

[PHOTO/CAPTION: James Gashel]

The Braille MonitorJanuary/February

2002

(back)

(next) (contents)

More

about SSDI and Retirement-Benefit Computations

James

Gashel

by

James Gashel

From

the Editor: Here is another set of e-mail exchanges between James Gashel, NFB

Director of Governmental Affairs, and an NFB member with frequently asked questions

about the transition from Social Security Disability Insurance to the Social

Security retirement benefit. We hope that the information will assist others

facing the same perplexities.

November

30, 2001

Mr.

Gashel:

In

the November Braille Monitor (Vol.44, No. 10), you were kind enough to

provide information on the Social Security Administration's SSDI [Social Security

Disability Insurance] program. One of the questions posed concerned the benefit

amount blind persons would be eligible to receive if they retired at age sixty-two

(or older). My question is similar but not directly addressed in your article.

I

am fifty-eight years of age, on SSDI, and able to work part‑time. My monthly

income is less than the amount Social Security considers to be Substantial Gainful

Activity (SGA). Over the last several months I have tried to secure a straight

answer from them on what will happen when I turn sixty-two, sixty-five, or an

older age. As usual the answers I have received are not consistent with each

other.

I

have been told that my current SSDI benefit amount will apply (with the increases)

when I reach those ages and also that, because my earnings have been so low,

I will receive the minimum retirement benefit when I turn sixty-two. (SSDI will

automatically terminate at age sixty-two.) Since the difference is significant,

it is important for me to learn how, at least under the existing statutes, regulations,

codes, and other governing provisions, the benefit amount after ages sixty-two;

sixty-five; and, if I can work that long, an older age, will be determined.

Can

you provide some advice and counsel? I am most appreciative of any assistance

or direction you can provide.

Sincerely,

_____

December

3, 2001

Hello

_____:

Even

though you are continuing to work, your benefits will continue without change,

other than cost-of-living adjustments. In fact, it is possible, if you have

earnings of around $14,000, that an additional increase should be made beyond

just the cost of living. The earnings you now have are called "post‑entitlement

earnings." If one or more years of post‑entitlement earnings are

higher than one or more of the pre‑entitlement years of earnings used

to compute your current benefits, the higher, post‑entitlement year or

years are supposed to be substituted in your earnings record for any lower years

used to calculate your benefit. This procedure is called a recomputation.

The

Social Security Administration is supposed to perform the recomputation procedure

automatically, but I find that it often doesn't happen that way. Any blind person

who is receiving Disability Insurance benefits and still working at below substantial

gainful activity should request a recomputation if the only increases have been

cost of living over the years. Bear in mind that recomputation adjustments are

not usually made at the same time as cost of living adjustments. In fact, they

can come at any time. Also no one can lose benefits by requesting a recomputation

unless an error has previously been made and is discovered in the recomputation

process. In other words, if your earnings for a particular year are not high

enough to be substituted for one of the pre‑entitlement years used in

the calculation, this will not result in a benefit decrease.

In

asking for a recomputation, you should definitely specify that you would like

to have all years of post‑entitlement earnings considered. I say this

because any adjustments that are due will be made, no matter how long ago the

post‑entitlement earnings occurred. This also means that you could receive

a very large make‑up payment and continuing higher benefits resulting

from a recomputation.

Finally,

you asked what happens when you become age sixty-two, and the answer is nothing

different. Under the Social Security Act you are still under a period of disability

until you become age sixty-five. You are not considered to be under early retirement.

You are still disabled, and all of the rules that applied before age sixty-two

still apply until age sixty-five.

At

age sixty-five all of the disability rules go out the window, and you will be

transferred to retirement benefits. In fact, you really won't realize that this

has happened since there is absolutely no change in the benefit amount resulting

from reaching age sixty-five. However, you should remember that there is no

earnings limit at age sixty-five, so it doesn't matter how much money you earn,

your benefits will still continue regardless, and, because of recomputations

that may be possible, the higher your earnings at age sixty-five and beyond,

the higher your benefits above the cost-of-living changes.

Thanks,

J.

G.

(back)

(next) (contents)