SSDI, returning to work, and PIA calculation

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Tdubs
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SSDI, returning to work, and PIA calculation

Post by Tdubs »

If you are collecting SSDI income when you reach your full retirement age, the monthly benefit continues as your retirement benefit.

Does anyone know how the years of disability figure into a calculation of your PIA if for several years at the end of your career you return to work and end your disability payments? For example, take someone who worked 20 years, was disabled for 10 years, and returned to work for five years before permanently retiring. How would the 10 years of disability figure into a calculation of monthly benefits at full retirement age?
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JoeRetire
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Re: SSDI, returning to work, and PIA calculation

Post by JoeRetire »

Tdubs wrote: Tue Nov 23, 2021 12:03 amHow would the 10 years of disability figure into a calculation of monthly benefits at full retirement age?
Disability benefits are not considered earned income.

Thus, for social security purposes, that would be 10 years of $0 earned income.
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HueyLD
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Re: SSDI, returning to work, and PIA calculation

Post by HueyLD »

Tdubs wrote: Tue Nov 23, 2021 12:03 am If you are collecting SSDI income when you reach your full retirement age, the monthly benefit continues as your retirement benefit.

Does anyone know how the years of disability figure into a calculation of your PIA if for several years at the end of your career you return to work and end your disability payments? For example, take someone who worked 20 years, was disabled for 10 years, and returned to work for five years before permanently retiring. How would the 10 years of disability figure into a calculation of monthly benefits at full retirement age?
https://www.ssa.gov/OP_Home/cfr20/404/404-0250.htm
Topic Author
Tdubs
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Re: SSDI, returning to work, and PIA calculation

Post by Tdubs »

HueyLD wrote: Tue Nov 23, 2021 10:05 am
Tdubs wrote: Tue Nov 23, 2021 12:03 am If you are collecting SSDI income when you reach your full retirement age, the monthly benefit continues as your retirement benefit.

Does anyone know how the years of disability figure into a calculation of your PIA if for several years at the end of your career you return to work and end your disability payments? For example, take someone who worked 20 years, was disabled for 10 years, and returned to work for five years before permanently retiring. How would the 10 years of disability figure into a calculation of monthly benefits at full retirement age?
https://www.ssa.gov/OP_Home/cfr20/404/404-0250.htm
Thanks so much!
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Tdubs
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Re: SSDI, returning to work, and PIA calculation

Post by Tdubs »

JoeRetire wrote: Tue Nov 23, 2021 7:22 am
Tdubs wrote: Tue Nov 23, 2021 12:03 amHow would the 10 years of disability figure into a calculation of monthly benefits at full retirement age?
Disability benefits are not considered earned income.

Thus, for social security purposes, that would be 10 years of $0 earned income.
Given the link by HueyLD, it seems like those 10 years really do have "earned income" in a way. It looks like they treat those years as frozen or constant income years. 404.252(b) (below) would apply to the scenario I described.

"404.252. Subsequent entitlement to benefits 12 months or more after entitlement to disability benefits ended.
In this situation, we compute your second-entitlement primary insurance amount by selecting the higher of the following:

(a) New primary insurance amount. The primary insurance amount computed as of the time of your second entitlement under any of the computation methods for which you qualify at the time of your second entitlement; or

(b) Previous primary insurance amount. The primary insurance amount to which you were entitled in the last month for which you were entitled to a disability insurance benefit."
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