Unemployment vs. Social Security Disability Benefits

It is important that our clients disclose to us what other type of benefits they are receiving if they are applying for Social Security Disability (“SSDI”) or Supplemental Security Income (“SSI”) benefits. This is especially true if an individual is receiving Unemployment Insurance (“UI”) benefits.

The Social Security Administration (“SSA”) is suspect of anyone who is receiving or is attempting to receive SSDI and UI benefits simultaneously. The reason concurrent applications for these two benefits are questionable is because each program has its own unique definition and qualification standards. In order to qualify for SSDI, you must be unable to work for at least 12 months or more due to a physical or mental impairment, or combination of impairments, or your impairment (s) must be likely to result in death. Thus, people applying for SSDI are not actively looking for work, due to the fact that their impairments prevent them from working. On the other hand, in order to qualify for UI benefits, individuals must show that they are able, willing and ready to work and that they are actively seeking employment. Thus, applying for UI and SSDI benefits concurrently can cause Social Security to question the credibility of the applicant.

Currently, there is no law precluding individuals for applying for both types of benefits simultaneously. SSA has acknowledged that filing concurrent applications may appear to be facially inconsistent, but they haven’t gone as far as to preclude people from filing dual applications. Instead, SSA has historically used it as a factor to weigh in consideration as to whether someone is disabled. As you can imagine, many Judges cite to the receipt of UI benefits as a basis for a SSDI denial.

Currently, a group of bipartisan Senators have introduced a bill that would reduce SSDI benefits for any month in which UI were received. The proposed bill named, S. 1099 - “The Reducing Overlapping Payments Act,” was introduced on June 6, 2013. The bill proposes that SSDI benefits would be reduced for any month in which an individual was receiving UI benefits. The policy behind this proposal is similar to the other offsetting benefit programs like California State Disability and the Worker’s Compensation system. Individuals who receive State Disability or Worker’s Compensation often see their SSDI benefits reduced until their State Disability and/or Worker’s Compensation benefits are exhausted or reduced themselves. It is the government’s way of preventing what they call “double-dipping.”

If you are interested in following the progress of this bill, here is a link that will provide you status:

http://www.govtrack.us/congress/bills/113/s1099

Got a question that you need answered? Please check out our website at www.westcoastdisability.com . We try to provide you with valuable information on our website that may help you navigate the Social Security Disability process. Also, feel free to shoot us an email at info@westcoastdisability.com or call us at (800) 459-3017.