Types of Disability Payments that Impact Social Security Benefits

By February 2, 2021 No Comments

Social Security Disability Insurance (SSDI) provides vital support to individuals who cannot work due to a physical or mental medical condition. However, it is not the only government assistance available to disabled individuals. Certain additional disability benefits can directly affect the amount of Social Security compensation you’re eligible to receive. According to the SSA, “disability payments from private sources, such as private pensions or insurance benefits, don’t affect your Social Security disability benefits.” However, for example, workers’ compensation is one of several types of benefits that may affect your monthly SSDI amount.

The Types of Benefits That Can Affect SSDI Amounts

Whether or not your benefit will affect your SSDI compensation depends on the source of the benefit. Namely, if your benefit comes from a government source—whether federal, state, or local—it may reduce your SSDI benefits. This can include things like retirement benefits for your disability from a state or local agency, or civil service disability benefits. This does not include things like Veterans Administration benefits, SSI benefits, or payments from a private pension or insurance company.

It is worth noting that if you receive workers’ compensation or other public disability benefits, in tandem with Social Security disability benefits, the total amount of these benefits can’t exceed 80% of your average monthly earnings before you became disabled. If the total amount of those benefits does exceed your average monthly earnings, the excess will be deducted from your SSDI payment. Lump-sum workers’ compensation payments may also affect the formula for your average monthly earnings in a different way.

Helping Clients Get the Most from Social Security Disability Benefits


When it comes to Social Security disability benefits, there’s a lot to wrap your head around. All too often, people who qualify don’t receive the benefits they deserve simply due to the confusing (and frustrating) application and review process. At Drew L. Johnson, Attorneys at Law, we’ve dedicated our careers to helping our clients get the support they need. Whether you’re applying for benefits for the first time or are trying to secure a reconsideration, we can help. Call (541) 434-6466 to schedule a free initial consultation.