Social Security and Unemployment

Kayla Moreland , May 13, 2015

Social Security and Unemployment117,000 people received cash benefits from both SSDI and Unemployment Insurance programs during 2010. Congress is considering ways to prevent this.

Congress has been proposing legislation aimed at off set unemployment benefits from your Social Security benefit.  If this legislation is approved, your Social Security Benefit will be offset by unemployment benefits you received during the same period.

Workers pay for both unemployment and Social Security benefit when they pay their taxes. Moreover SS benefits already have a 5 months waiting period before they take effect.

Congress is still considering several ideas on how to impose more regulations on the system. Read more: Concurrent Receipt of Social Security Disability Insurance (SSDI) and Unemployment Insurance (UI): Background and Legislative Proposals in the 113th Congress.

Why this is important to disabled workers.

Our Clients often rely on Unemployment Benefits to sustain themselves during the Social Security Disability process. The process can take months or years before the system finally decides that the worker really is disabled.

A formal offset procedure would mean that any month you receive Unemployment Insurance could count as a waiting period month for Social Security Disability. An SSDI claimant receiving UI could be considered not eligible until  the UI  Benefit ended. Extending the waiting period would delay both SSDI cash benefits and Medicare health insurance for workers who become disabled.

Because a claimant’s SSDI onset date could not be set during any month they received unemployment benefits, you would be forced to choose between receiving of UI, or pushing your disability onset date further ahead into the future. Pushing the onset date into the future means pushing the month you can get Social Security Disability income and Medicare further into the future.

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