Ask Larry

I got hurt at work and receiving Workers Comp payments for a 12% impairment rating (3 level back fusion), among others conditions. I am still working, but submitted a claim and my employer is offering $50,000 to settle. I am married, female and 59yr. My wife is receiving SSDI of $1,605 net monthly for the past 10 years, she is 68. The last time I checked MySocial the benefits will be around $1,000 - $1,050 as per website. So, If that is the amount I will be receiving or I will be paired with my wife's SSDI?

Hi. I don't have nearly enough information to be able to give you an estimated benefit amount. What I can tell you from the limited information in your question is that it sounds like your primary insurance amount (PIA) is more than half as much as your wife's PIA, in which case you won't be able to qualify for spousal benefits at least while your wife is living. If you qualify for Social Security disability (SSDI) benefits based on your own record, your benefit rate before any offsets or deductions would be equal to your PIA, which is essentially the same as what your Social Security retirement benefit rate would amount to if you started drawing those benefits at your full retirement age (FRA).

However, SSDI benefits can potentially be fully or partially offset if the person receiving SSDI is also receiving or received Workers Compensation (WC). Even if you receive a lump sum WC settlement in lieu of weekly or monthly payments, your SSDI benefits can still potentially be offset for years after you receive the settlement. The formula for determining how much if any WC offset applies to a person's SSDI benefit is complex, but the basic principle is that the total monthly WC and SSDI amount payable can't exceed 80% of the person's 'average current earnings' (ACE). In most cases, the ACE is equal to 1/12th of the person's highest year of earnings in the 5-year period preceding the year they became disabled (https://secure.ssa.gov/apps10/poms.nsf/lnx/0452150001).

However, some states have passed reverse offset laws, and in those states any applicable offset would apply to the person's WC payments rather than their SSDI benefits. So, the bottom line is that your SSDI benefit rate would depend on the amount of your PIA, which is calculated based on your earnings history, as well as your ACE, WC benefit rate, and the state in which your work injury occurred.

Best, Jerry

I have been disabled since 2017. And I am aged 63 . How do I know if I get ssd ir Ssi ? I need to know if my benefits will stop after selling house

Hi. If your monthly benefit payment normally arrives on the 1st day of the month, then you must be receiving Supplemental Security Income (SSI). SSI is needs based, and if you receive SSI then selling your house could cause your benefits to stop unless you use the proceeds from the sale to buy a new home in which to live within 3 months.

If your benefit payment normally arrives on either the 3rd day of the month, or on the 2nd, 3rd, or 4th Wednesday of the month, then you are likely receiving Social Security disability (SSDI) benefits, in which case selling your home wouldn't affect your benefits. If you aren't sure what type of benefit you are receiving, though, you can always call Social Security to find out.

Best, Jerry

What is the downside to my spouse claiming work history benefits upon turning 62 then upgrading to spousal benefits when I turn 67? Is there a general rule of thumb as to whether or not it is worthwhile to have her start claiming benefits at 62?

Hi. The potential downside is that your wife would then be stuck with the reduction for age that's applied to her benefit rate for at least as long as both of you are living, even if she later qualifies for spousal benefits from your record. Your wife can't simply claim benefits on her own account at age 62 and then switch to spousal benefits at a later date. Once she applies for her own benefits, those benefits continue for life.

Furthermore, assuming that your wife was born after January 1 1954, whenever she applies for her own benefits she'll be deemed to also be applying for spousal benefits. That means if your wife claims her own benefits early and if you start drawing your benefits before your wife reaches her full retirement age (FRA), then both her own benefit amount and any additional spousal benefits for which she qualifies would then be reduced for age.

It sounds like you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your various options so that you can determine the best overall strategy for maximizing your benefits.

Best, Jerry

I retired under civil service. WIll I be eligible to collect spouseal Soc. Sec from my deceased husband if windfall act is repealed? In addition to my Civil Service Benefits?
Thank you for responding to my inquiry.

Hi. The Windfall Elimination Provision (WEP) doesn't prevent anyone from collecting Social Security spousal or survivor benefits, so repeal of WEP wouldn't make any difference with regard to your potential eligibility for widow's benefits. WEP can only affect Social Security retirement or disability benefits that are payable based on a person's own Social Security earnings history, not survivor benefits.

However, there is a separate Government Pension Offset (GPO) provision that can affect Social Security spousal or survivor benefits (https://www.ssa.gov/pubs/EN-05-10007.pdf). The GPO provides that if a person is collecting a governmental pension that is based on their earnings from a U.S. federal, state, local or county agency that were exempt from Social Security taxes, then any Social Security spousal or survivor benefits for which they would otherwise qualify can be offset by 2/3rds of the amount of their government pension. That can result in a Social Security spousal or survivor benefit rate of zero, depending on the relative amounts of their Social Security and government pensions.

If you haven't already done so, you may want to consider applying for Social Security survivor benefits. Even if your benefit rate ends up being zero, your application could potentially permit you to collect back pay in the unlikely event that the GPO provision is repealed.

Best, Jerry

My 3 children receive 846 per child my oldest Turing 18 so how much will tha remaing to get

Hi. The answer to your question depends on a) the primary insurance amount (PIA) of the worker on whose record the children collect benefits, b) the family maximum benefit (FMB) amount that can be paid on the worker's record, c) whether or not the worker is living or deceased, and d) whether or not any other children or surviving spouses will be eligible for benefits on the worker's record.

Children receiving benefits on the record of a living worker can be paid up to a maximum of 50% of the worker's PIA, whereas surviving children can be paid as much as 75% of a deceased worker's PIA. But, if paying all of the eligible auxiliaries or survivors their full benefit rates would exceed the FMB, then the actual amount payable to each beneficiary must be reduced proportionately.

Social Security would have all of the information required to answer your question in their records, so you should be able to find out by calling them.

Best, Jerry

I am 64 and on Social Security. I sold my primary home and received $190,000. Will this affect my Social Security benefit?
Thank you

Hi. No. Income from selling your home has no effect on Social Security benefits.

Best, Jerry

I retired in 2017 at the age of 62, I continued working part time, in all the years of retirement my income was higher, every year than it was in my younger working years, I never had a recalcuation that I know of, then in Novmeber of 2022 I sent a leftter to Social Security Administration asking for a recalculation, it is almost June of 2023 and I have not heard anything from them one way or another regarding the recalcualtion. Is it too soon to expect an answer and also will they give me an answer even if I don't qualify for a recalculation ?

Hi. You wouldn't think it would be too soon for Social Security to have acted on your request for a benefit recalculation, but I have no way of knowing how much of a backlog they may have. In any case, they are supposed to send you a notice even if your request results in no benefit increase (https://secure.ssa.gov/poms.nsf/lnx/0300605570). The notice would inform you of your appeal rights if you disagree with Social Security's determination.

Note that in order for your recent earnings to increase your benefit rate they must not only be higher than your actual earnings in your previous 35 highest earnings years, they must be higher than your highest 35 WAGE-INDEXED earnings years. Wage indexing converts earnings from years before you turn age 60 to reflect how much those earnings would amount to in more current dollar amounts. The following Social Security website explains how to calculate your wage-indexed earnings for all years, which should permit you to determine if your recent earnings were higher than your highest 35 wage-indexed earnings years.

Best, Jerry

Hi, I would like to know how far in advance do I need to apply for social security benefits if my 65th birthday is in February 2024? As I will be applying for Medicare in November of 2023. Thank you!

Hi. Filing your application for Medicare in November 2023 should work fine if you'll reach age 65 in February 2024.

Assuming that your question refers to applying for monthly Social Security benefits, you don't necessarily need to apply in advance. You can apply for benefits as late as the month you want them to start without losing any benefits. However, Social Security allows you to file applications up to 4 months in advance, and filing early increases the chances of your first payment not being delayed.

Your best filing strategy depends on numerous different variables, though, so before applying you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your various options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry

My husband passed away he lives in Puerto Rico what do I do can I call for widow benefits over the phone I get ssi

Hi. I'm sorry for your loss. Yes, you can apply for Social Security widow's benefits by phone. You don't mention your age, but unless you have a child of your husband's in your care you would need to be at least age 60 or at least age 50 and disabled to potentially qualify for widow's benefits. You should be able to make an appointment to apply by calling 800-772-1213.

By the way, if you do start receiving widow's benefits, your Supplemental Security Income (SSI) payments will be reduced roughly dollar for dollar by the amount of your widow's benefit.

Best, Jerry

Married twice. Divorced twice. 1st marriage 17 yrs 2nd 3 yrs. Can I collect SS from the first spouse? I just turned 65 and am in financial crisis and contemplating collecting mine or his (whichever is higher) now instead of waiting another 1yr and 8 months for full benefits. If I wait my own would be slightly higher at 66 & 8 months. Thank you.

Hi. All that I can tell you for sure based on the limited information in your question is that your short second marriage would not hinder your ability to potentially collect benefits on your first husband's record. However, since you don't specify whether or not your first husband is still living, I can't give you any specific filing advice.

As long as your first husband is living, you wouldn't be able to apply for either your own Social Security retirement benefits or for divorced spousal without being deemed to be filing for both benefits at the same time. As a result, you could only then be paid what is essentially the higher of your own benefit rate or your divorced spousal rate, and the benefit rate would be reduced for age if you start collecting benefits prior to your full retirement age (FRA).

If your first husband is deceased, though, then you could potentially apply for either your own retirement benefits or survivor benefits now, and wait until later to claim the other benefit. Your best filing strategy depends on numerous different variables, so you should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare and analyze all of your options so that you can determine your best strategy for maximizing your benefits.

Best, Jerry