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If you are receiving a pension because of retirement or disability, you may want to know how a pension affects Social Security Disability payments. Getting a pension can impact what you receive from the Social Security Administration, but it depends on the situation and the type of benefits. For example, those receiving SSI may qualify for less benefits if they also receive monthly pension payments. Likewise, your SSDI benefits may decrease if you are receiving a pension and meet other criteria. Other income sources, such as retirement benefits, can impact your eligibility for other SSA programs. 

At Krasno, Krasno & Onwudinjo, we fight for those who cannot work due to age or an injury. We understand how difficult it can be for people to claim benefits they believe they’re owed under the law. Our compassionate team of Pennsylvania Social Security Disability lawyers has decades of experience advocating for those who are in need. 

How Does a Pension Affect Social Security Disability Benefits?

Someone can receive a pension and Social Security Disability Insurance benefits at the same time. That said, they may receive less in total benefits under the SSA program. It depends on what type of benefits they are receiving, the source of their pension, and whether they paid into the Social Security system. 

For example, the Windfall Elimination Provision (WEP) changes the amount someone receives from SSA if they receive a pension and didn’t pay enough Social Security taxes through their work. The WEP applies to eligible workers who receive government pensions and SSDI and did not pay Social Security taxes for at least 30 years during their employment. How much the WEP impacts your benefits depends on things like your age when you started receiving your pension and SSDI payments.

Basic Overview of the Main Social Security Programs

To figure out how receiving a pension may impact your Social Security benefits, you you might benefit from learning about the different types of programs that are available. The Social Security Administration offers several packages to support people who are retired or in need. The three common programs the SSA oversees are Social Security Disability Insurance, Supplemental Security Income, and Social Security Retirement benefits. Additionally, survivor benefits are available to eligible surviving family members of a worker who passes away. 

Social Security Disability Insurance (SSDI)

The Social Security Disability Insurance (SSDI) program supports those who have a qualifying disability and contribute to the SSDI system through their employment. The idea is that the worker paid into the SSDI program and, when they become disabled, is claiming these prepaid benefits. 

To be eligible for SSDI, you need to show that you have a disability that prevents you from working for at least a year. As part of meeting these criteria, you must establish that you can’t participate in gainful employment where you earn a certain amount each month. Additionally, you need to prove that you have sufficient work credits to qualify for the program. When you retire or reach retirement age, the SSA may automatically convert your SSDI benefits to Social Security Retirement benefits. 

Supplemental Security Income (SSI)

Supplemental Security Income (SSI) is available to people who have a disability, are blind, or are over 65 and have little to no income or resources. The person needs to prove they have a qualifying total disability, which prevents them from earning money to support themselves. They also need to prove the value of their total assets (income and resources) is below a certain amount. This number changes based on inflation, the type of resources or assets, and the person’s family size. 

Social Security Retirement Benefits

Social Security retirement benefits are paid to people who reach retirement age and are no longer working. You may also be able to receive these benefits if you work fewer hours than you did before. In other words, you don’t have to completely leave your job to qualify. But you do have to be old enough to claim retirement benefits (e.g., at least 62 years old) and have paid Social Security taxes out of your wages during your lifetime. You may have to establish that you paid Social Security taxes for a certain amount of time (e.g., at least 10 years).   

What Is a Pension?

In general terms, a pension is a benefit you receive from working at a job for a certain amount of time. Though each plan varies, most pensions guarantee that someone will receive a certain amount of money each month for a defined period. For example, they may receive $300 per month for life once they are eligible to withdraw from the plan. They may receive these benefits when they retire or if they become disabled. Many government workers may receive a pension, but some employees in the private sector may also qualify for these programs. 

Can Filing for Social Security Disability Benefits Lower My Pension?

In most situations, receiving SSDI does not impact your pension benefits. That said, your pension payments may decrease what you get each month in SSDI or Social Security retirement. It depends on the source of your pension, whether you paid into the Social Security system, and other factors. If you have questions about receiving a pension and Social Security benefits, consider working with a disability lawyer. They can investigate your situation and help you identify and fight for the compensation you may be entitled to under the law. 

Does the Social Security Administration Count Your Pension as Income for SSI?

The Social Security Administration may count your pension as income for purposes of the SSI program. To determine if someone is eligible for SSI, the Social Security Administration looks at their resources and assets. For example, they may calculate how much the person receives each month from work and nonwork sources. Work sources include money from jobs or royalty payments. Nonwork sources may encompass pensions, disability payments, workers’ compensation, and unemployment benefits. If you are receiving SSI, the SSA may reduce your benefits based on how much you receive each month from your pension. 

Are a Pension and Social Security Retirement the Same Thing?

Pension and Social Security Retirement aren’t the same things. A pension is a benefits package you receive through employment. You withdraw these benefits when you become eligible to do so, such as because of retirement or disability.

In contrast, Social Security Retirement is something you receive from the SSA once you reach retirement age. You have to apply for these benefits and meet their eligibility criteria. 

It’s possible to receive a pension and Social Security Retirement benefits at the same time. That said, the SSA may reduce your total payments each month based on things like the Windfall Elimination Program. 

Does Receiving a Pension Lower My Spousal Disability Benefits?

Under the Government Pension Offset, receiving a specific type of pension may lower your spouse’s disability, retirement, or survivor benefits. It applies to some types of pensions (e.g., civil service pensions) and can reduce the spouse’s benefits by two-thirds. 

There are important exceptions to this rule that may apply to your situation. For example, those getting pension payments solely because of railroad employment may be exempt. Likewise, people who started to receive their spousal benefits before April 1, 2004, may still qualify for those entitlements if their spouse gets pension payments. 

Does Receiving Private Retirement Benefits Impact Social Security Payments?

Receiving retirement benefits (e.g., from a 401(k)) may impact how much Social Security payments you get each month. It depends on a number of factors, such as the type of Social Security benefits you are getting. For example, to be eligible for programs like SSI, you need to prove that you do not earn more than the allowed income threshold. Retirement payments you receive from sources such as a 401(k) may be counted as monthly income. As such, the SSA may reduce your SSI payments accordingly. 

Krasno, Krasno & Onwudinjo: Fierce Philadelphia Social Security Disability Lawyers

If you’re unable to work because of age or disability, it can be challenging to earn enough money to support yourself. Programs like pensions and Social Security can be a lifeline, offering you the financial help you need. However, these programs often have confusing eligibility criteria, causing you to worry about accidentally losing your benefits. 

At Krasno, Krasno & Onwudinjo, we can appreciate the trials experienced by those whose age or disability keeps them from earning money. For over 85 years, our firm has been fighting for the injured and those who are out of work. Andrew Onwudinjo’s tireless efforts have earned him a place on the selective Super Lawyers list from 2006 through 2024. 

If you have questions about receiving a pension and Social Security benefits, contact us today by calling (844) 919-4016 to schedule a free consultation.