Ask Larry

How Will The Severance Payment My Employer Offered Me Affect My Disability Benefits?

I've been on social security disability since 2007, work the part-time job for the last 14 years I'm leaving and they offered me a severance it's a small severance about 7,500 how will that affect my disability payments

Hi. Severance pay is generally considered as wages, so it could affect your Social Security disability (SSDI) benefits if it causes your average monthly earnings to exceed the amount that Social Security defines as substantial gainful activity (SGA). In 2022, SGA for non-blind individuals is earnings in excess of $1350 per month, and for blind individuals it is $2,260 per month.

The exact effect that severance pay would have on your SSDI depends in large part on how much you were earning previously. I would suggest calling Social Security try to speak with a claims representative. They can then look up your records and should be able to tell you what if any effect a severance payment would have on your SSDI benefits.

Best, Jerry

Posted: 
Aug 10 2022 - 5:20pm
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