I retired from USPS in 2014 at age of 56 via FERS. FERS paid an Annuity and a Supplemental Social Security benefit ($1137). I also got approved for Social Security Disability Benefits. How, upon turning 62 this year the Supplemental payment of $1137 will cease because that's when FERS considers the 1st year you qualify for Social Security Retirement Benefits. I also have a minor receiving Benefits under my SSDA. My question is: can I continue receiving Social Security Disability Benefits until age of 65 or will Social Security change my Benefits from Disability Retirement to regular Social Security Benefits? How do I maximize my Benefits, seeing I'm losing the additional $1137? Hopefully, that makes sense.
Thanks

Hi,

Yes, you can continue receiving Social Security disability (SSDI) benefits regardless of any changes that FERS (Federal Employee Retirement System) makes. Social Security won't automatically convert your SSDI benefits to regular Social Security retirement benefits until you reach full retirement age (FRA), which in your case would be sometime between your 66th and 67th birthday, not at age 65. Both SSDI benefits and unreduced Social Security retirement benefits are calculated at 100% of the worker's primary insurance amount (PIA), so your benefit rate shouldn't change when your benefits are converted at FRA.

Your best option is likely to simply continue to draw SSDI until they convert to retirement benefits at FRA. The only way that you might want to switch to drawing Social Security retirement benefits before FRA is if your child is getting less than 50% of your SSDI rate due to the family maximum benefit (FMB). A lower FMB limit can sometimes apply if the worker is receiving SSDI benefits as opposed to Social Security retirement benefits, and that lower FMB can cause a lower benefit rate to be paid to auxiliary beneficiaries (e.g. child, spouse) who receive benefits on the worker's record. You don't mention your or your child's benefit rates, so I don't know whether or not that's potentially involved in your case. If your child's benefit rate is less than half of your full SSDI amount, though, you may want to discuss your options with Social Security.

Another potential strategy that you might want to consider is voluntarily suspending your benefits when they convert to retirement benefits at FRA. If you did suspend your benefits from FRA until age 70, your benefit rate would increase by roughly 26% to 28% by the time your benefits are resumed at age 70. You probably wouldn't want to suspend your benefits while your child is still eligible, though, because if you suspend your benefits then your child couldn't be paid auxiliary benefits while your benefits are suspended.

Best, Jerry