SOCIAL SECURITY DISABILITY INSURANCE (SSDI):
AN UPDATE
Highlights of a lecture by Ginger Lanigan
Ginger Lanigan & Associates
Brockton, MA
Wednesday April 26, 2000

Ginger Lanigan is a fee-for-service advocate in private practice who assists
people with the process of winning social security disability entitlements.

What is Disability?

The dictionary defines disability as "a physical or mental impairment that
prevents a person from leading a normal life." Social Security defines
disability more specifically as "a physical or mental impairment that is
expected to keep you from doing any substantial work for at least a year, or
a condition that is expected to result in your death."

Your Social Security Entitlement

If you have paid into the social security system through FILA payroll
deductions, you are entitled to be considered for Social Security disability
payments. Some professions, particularly teachers, do not pay into Social
Security but rather pay into a private insurance plan. People who do not
pay into Social Security are not eligible to file for disability.

Regardless of the age at which you file for disability, you are not subject
to losing 20% of your entitlement as you would if you filed for retirement
benefits at age 62.

Ginger stressed that people applying for or receiving social security
disability income (SSDI) should consider it as a solution for now, not forever.
It is a means to put food on your table and a roof over your head during a
difficult time.

The Application Process

Social Security disability is federal program that is administered by state
agencies. SSI, or Supplemental Security Income, is a state program. Even though Social Security is a federal program, disability benefits are administered by state agencies. In Massachusetts, that agency is the Massachusetts Rehabilitation Commission.

Depending on when you are awarded benefits or drop out of the application
process, there can ultimately be three stages of applications. The initial
application is the most important because it follows you throughout your
quest. The initial application is 8 pages long and includes information on
doctors, medications, work history, how you act on a daily basis (e.g., can
you feed, clothe, bath yourself), and other details.

If the initial application is denied you can appeal the decision and submit
a second application. This second form is five pages in length and focuses
on issues like any changes that may have occurred since your initial
application was filed, how your meds are affecting you, etc.

If the second application is denied you can appeal the decision and go to
what is known as the hearing level. This involves appearing before a judge
at an administrative hearing, and can take easily 8 to 10 months from the
time you appeal your second denial.

Benefits

In determining your benefits, Social Security looks at your earnings history
over the last 10 years and selects the five years with the highest earnings. These five best years are then used as the baseline for determining your benefits, subject to a disability benefits maximum. If you are determined to be eligible fo SSDI benefits, in most cases you will receive both monthly disability payments and a one-time check representing retroactive payments since the time you first applied for benefits.

Children of parents who receive SSDI are also eligible for benefits. All of
the children together typically receive 50 percent of what their parents
receive. This figure is subject to a family maximum.

You can find out what your potential disability and retirement benefits
would be, respectively, by contacting social security and requesting a
personal earnings statement. Their number is 1-800-772-1213.

Earning Money While On Social Security

People receiving disability payments are allowed to work without
jeopardizing their benefits. The ceiling for monthly gross earnings was
recently raised from $500 to $700 per month, which means that someone
receiving benefits can receive up to $700 per month in gross earnings without penalty. This $700 limit also applies to people working during the application process. Once you are on disability, if you accumulate 9 full months of over $700 in earnings, your benefits can be revoked. Remember that these 9 months
don't have to occur in a row, instead they can be accumulated over several
years.

With SSDI, the amount of money you have in the bank does not impact your
benefit award. With SSI, the state payment, however, you are allowed to own
a house and inexpensive car and have no more than $2,000 in tangible assets
($3,000 for married couples). Tangible assets include bank accounts, life
insurance, and in general anything you can cash in. SSI also differs from
SSDI in that it does not use a work base like SSDI's 5 years to determine
your benefit amount.

Your spouse's income does not factor into your SSDI benefit determination
since SSDI represents your individual entitlement.

SSDI and Other Benefits

If you are on private long-term disability you can collect SSDI. In fact,
most private insurance companies will encourage you to apply for SSDI
because the private insurance will reduce their payment to you by the amount
you win from SSDI.

If you are currently receiving workman's compensation, Ginger recommends
that you file immediately for SSDI. During the time you are collecting
workmen's compensation you are not paying into FICA so the payments do not
count towards your SSDI benefits determination.

People in Massachusetts who are on disability are also eligible for MassHealth
health insurance as long as they do not earn more than $926 per month.

Continuing Disability Reviews

Continuing Disability Reviews, or CDRs, are conducted on average every three
years. If you are still in treatment, receiving counseling, and taking medications the
review is typically not a problem. Ginger's firm also assists with disability reviews, charging a fee of one month's disability income.

Disability Advocates

Most applicants who reach the hearing level should have an attorney or
advocate prepare them for and accompany them to the hearing. Ginger Lanigan
and associates is a private advocate whose fee is paid from your winnings,
e.g., a percentage of your retroactive payments since you first became
disabled. Public and private attorneys also serve as advocates, with their
fees set by the judge presiding over the administrative hearing.
While advocates are generally not necessary until the administrative hearing
level, Ginger Lanigan's group provides services such as sending for medical
records and discussing them with the State Examiner that are typically
associated with the first phase.

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