Disability vs Retirement Benefits

[Karenkay]

Am I able to receive retirement benefits while receiving disability? Or forced to forfeit one for the other? How does that work?

[Mamabug]

I can only explain how I think it works for me.

I currently receive SSDI disability benefits from the Social Security Administration. Because I receive that, I currently receive the minimum LTD amount from KPERS (State of Kansas Retirement System for Public Employees), my previous employer. If I had qualified for KPERS LTD, but not for SSDI, my KPERS LTD amount would be higher than it currently is.

When I reach retirement age, my SSDI disability benefits will convert to Social Security retirement benefits, and my LTD provider will consider all of my years of working for them + years being on LTD disability as years of employment when calculating my KPERS retirement benefits.

I think my Social Security benefits will remain the same (with the annual cost of living adjustments.) And, my annual retirement reports from KPERS indicate that my KPERS retirement benefits will increase from their minimum that I am being paid now, as I will have approximately 30 years credit by then (10 years employment + 20 years on LTD).

So, for me, it's either/or, not both at the same time. Seems like that would be double-dipping, so, to me, it won't feel like a "forfeit' of anything. I'll actually be receiving more then, than I am now.

[Seasha]

My experience is my SS disability check changed to a basic Social Security retirement benefit last year when I reached retirement age status - the amount did not change, just like Mamabug stated.

I also receive PERS retirement checks from 2 of my past work experiences. My SS checks were not affected at all.

[jreagan70]

Am I able to receive retirement benefits while receiving disability? Or forced to forfeit one for the other? How does that work?

There's only one benefit from Social Security, so there aren't two benefits to choose between.

SSDI already is your retirement benefit. You're just getting it earlier than your normal retirement age because you were forced to "retire" early due to disability. The amount of your benefit is based on the age at which you "retired" and doesn't change when you get older, because you're already "retired."

On your side, nothing changes money-wise when you reach full retirement age. On Social Security's side, they make an administrative change, start taking the funds out of a different account, and start calling your benefits just regular retirement benefits. That's all legal and accounting stuff that doesn't involve the recipient.

At full retirement age, it's assumed that you would stop working anyway, so the reason you're retired and receiving benefits becomes irrelevant, so you go on regular retirement benefits like everybody else. But on your side, it's all the same thing.

If you're eligible for any private retirement pensions from a former employer, your Social Security benefit isn't affected, and private pensions aren't usually affected by the amount of Social Security. You don't have to choose between private and Social Security benefits. You're entitled to receive both.

[Karenkay]

Thanks for the responses. Thank you, jreagan. That helped alot!!