Hi Jerry,

Quick question. I will use easy numbers/dates for sample.

Let’s say I am terminated on 4/15/18 and I earned $50,000 per year. I
received SSDI as of 4/16/18 to present.

Now three years after receiving SSDI, my employers consider a settlement. I
request three years back pay (until 4/15/21) and two years front pay (until
4/15/23) for a total of five years for $250,000.

Let’s say I receive $250,000 on 4/15/21, but I already received three years
of SSDI. The $250,000 has back pay of three years included which made me
whole for those three years. So in essence I received both SSDI and Back Pay
from 4/16/18-4/15/21.

If I receive a settlement that says three years back pay until 4/15/21, do I
have to repay my three years of SSDI ( around $150,000) from 4/16/18-4/15/21.
Do I continue getting SSDI?

If my last day physically in office was 4/15/18 and the back pay came after
4/15/18 for three years from 4/16/18-4/15/21, do I have to repay back pay for
a time I was not physically at the office. My last day in the office, my last
day working was 4/15/18 and the back pay period was subsequent on
4/16/18-4/15/21

I appreciate your help. Best Jeff

Hi Jeff. Receiving a settlement from your former employer for something other than a job related illness or injury, such as a wrongful termination lawsuit, would have no effect on your Social Security disability (SSDI) benefits regardless of the amounts involved. Receiving workers compensation and public disability benefits (PDB) could affect a person's SSDI benefit rate, but I assume that's not what you're talking about.

I should note, though, that if the settlement payment is classified as wages subject to Social Security taxes and you thus receive a W-2 form, it would be important to report the details of your settlement to Social Security. Otherwise, Social Security will likely assume that you've been working. Even if you did have to pay Social Security taxes on your settlement, though, as long as you didn't perform any services for your employer after your SSDI disability onset date then the settlement won't have any adverse effect on your SSDI benefits.

Best, Jerry