If you worked for the state of Florida and are considering applying for Social Security Disability Insurance (SSDI) benefits, there are some important factors to be aware of that could affect your eligibility and the benefits you may receive.
Public Employees and Social Security Coverage
Many public employees in Florida, including those who work for state and local governments, are covered by the Florida Retirement System (FRS). While most FRS members also pay into Social Security through payroll taxes, there are certain categories of public employees who may not pay into Social Security. This depends on whether your particular job or employment contract participates in Social Security.
If you’ve worked in a job that didn’t withhold Social Security taxes, it can affect both your SSDI eligibility and the amount of benefits you may be entitled to receive.
The Windfall Elimination Provision (WEP)
If you didn’t pay into Social Security for part of your work history, but still qualify for Social Security benefits because you worked in another job that did contribute, the Windfall Elimination Provision (WEP) may reduce the amount of your SSDI benefits.
The WEP is designed to adjust the benefit calculation for people who worked in jobs that didn’t contribute to Social Security, but still received a pension from that work. For example, if you worked as a government employee in a job not covered by Social Security and are eligible for a pension through the FRS, your SSDI benefits may be lower than you expect because of the WEP formula.
The Government Pension Offset (GPO)
If you’re applying for Social Security spousal or survivor benefits, the Government Pension Offset (GPO) may come into play. The GPO reduces those benefits by two-thirds of the amount of your government pension. This offset can greatly affect the benefits you or your family may receive if you worked in a government job not covered by Social Security. For example, if you receive $900 per month in FRS retirement benefits, two-thirds of that amount—$600—would be deducted from your spousal or survivor benefits.
Other Disability Benefits for State Employees
FRS Disability Benefits
In addition to SSDI, you may also be eligible for FRS disability retirement benefits if you become disabled while working for the State of Florida. The FRS offers both regular and in-line-of-duty disability retirement benefits that are separate from Social Security Disability Insurance. It’s important to understand that FRS disability benefits do not affect your SSDI eligibility, but if you receive both, the combined amount of benefits could be adjusted.
Long-Term Disability (LTD) Insurance for State Employees
Many state employees in Florida have access to long-term disability (LTD) insurance through their employment. LTD insurance is designed to provide income replacement if you are unable to work due to a serious injury or illness. While LTD benefits vary depending on the specific policy you have, most will pay a percentage of your salary, typically 60-70%, during your period of disability.
If you receive LTD benefits in addition to Social Security Disability Insurance or an FRS pension, it’s important to know that most LTD policies include an offset provision. This means that the amount of certain other benefits you receive will be deducted from your LTD benefits so that you don’t receive double compensation. For example, if your LTD policy provides a “Gross LTD” benefits of $3,000 per month, but you qualify for $1,200 in SSDI benefits, the LTD insurer may offset those SSDI benefits to reduce your “Net LTD” monthly payments to $1,800.
Consult an Experienced Attorney
Navigating the complexities of Social Security disability, state employment, and long-term disability insurance can be challenging, especially when rules like the WEP and GPO are involved. If you’re unsure about how your specific situation might affect your SSDI benefits or LTD insurance, consider consulting with a disability attorney who understands both Social Security rules and the intricacies of state pensions and LTD policies. They can help you understand your options and make sure you’re maximizing the benefits available to you.
If you need assistance with your disability claim, the Ortiz Law Firm can help. Contact us online or call (888) 321-8131 today to get guidance tailored to your specific circumstances.
