Protecting Your Paycheck With The Combined Benefit of Social Security Disability Insurance and Ticket to Work

By Steve Perrigo, Allsup

Protecting your paycheck is more important than ever for most working Americans. The higher cost of everything from gas to groceries, plus high interest rates, make it a challenge to stay within household budgets. In these uncertain times, it’s important to know the federal protections that are in place should you ever need them.

Nearly 160 million U.S. workers may be unaware of an important protection to their earning power. The combined benefit of Social Security Disability Insurance (SSDI) and the Ticket to Work Program supports individuals when they cannot work due to illness or injury, and offers significant incentives to return to the workforce when the time is right.

The Social Security Administration (SSA) oversees SSDI. FICA taxes are the insurance premium you pay to enroll in the program. Last year, $160.7 billion in net payroll tax contributions for DI were collected.

Social Security Disability Insurance

Despite paying into the program, many people don’t know they have earned SSDI with their FICA taxes. The program goes beyond monthly cash payments. SSDI unlocks a whole host of other benefits that can make a significant difference for those dealing with chronic illnesses or disabilities.

These include:

Monthly income. The average 2023 benefit is $1,483, and it maxes out at $3,627.
Medicare coverage. Medical and prescription drug coverage begin 24 months after SSDI cash benefits start.
Protected Social Security retirement benefits. Approval for SSDI triggers a Social Security earnings record freeze that can result in a higher retirement income.
Dependent benefits. SSDI approval can result in benefits for children under 18, adding up to 50% more to an individual monthly payment.
Annual cost-of-living adjustments. The COLA is evaluated annually and may raise your monthly income.

The Ticket to Work Program

Even fewer people know about the Ticket to Work program (TTW). According to a recent report from the SSA, almost one third of SSDI beneficiaries were unaware that they could keep their SSDI benefits and return to work.

TTW is an extension of SSDI. All individuals who receive SSDI are automatically eligible for TTW. It’s a free program for U.S. workers with disabilities that offers a safe path to try working again after their medical condition stabilizes. The Ticket to Work program offers substantial protections including:

Earn any amount. During the first year of the program, you can make as much money as you want and protect your full SSDI benefits.
No continuing disability reviews. Avoid Social Security’s disability reviews and the possible benefits termination that may result from a review.
Keep Medicare. While working, you can continue receiving Medicare for more than 7 years.
Benefits reinstatement. If you need to stop working any time within 9 years, your SSDI benefits restart.
It costs nothing. Social Security funds this program, so beneficiaries work with Employment Networks (ENs) at no personal cost. ENs help people with all aspects of returning to work.

There are many unfounded beliefs about SSDI. Some people think SSDI is a fund they’re paying into and, by taking SSDI, they will reduce the money they’ll receive in the future. This isn’t true. It is a federal insurance program and FICA taxes are the premium you pay to be covered. It’s actually better for an individual to take SSDI if they can’t work, because the program protects their future retirement income.

The combined protection of SSDI and TTW covers American workers at a vulnerable time. The income and other benefits it provides are a safety net when you can’t be sure how you’ll provide for your family. Ticket to Work completes the program by providing a path back to work when it’s medically advisable. The Ticket program has returned thousands of former workers to their livelihoods, or, with the help of ENs, found them a new career. You owe it to yourself and your family to be knowledgeable about protecting your paycheck with this federal insurance policy that you’ve paid into.

To learn more about income protection, visit RealityCheckup.info, which is part of a CDA consumer outreach program to help working adults understand the importance of having alternate sources of income for times when they cannot work due to illness, injury, or pregnancy.

About Steve Perrigo

Steve Perrigo has written 9 posts in this blog.

Steve Perrigo, J.D., is Vice President & Head of Sales and Account Management. He joined Allsup in 2010 following 17 years with the Social Security Administration (SSA) in various roles of increasing responsibility, including Claims Representative, Technical Expert, Operations Supervisor, and Assistant District Manager. Steve leads Allsup’s national account sales activities and provides consultative guidance to client companies by analyzing complex data sets that compare performance against historical measures, Allsup’s business results, and industry benchmarks. His consultation includes leveraging his prior experience with the SSA to identify and analyze macro-level trends with the Social Security Disability Insurance program, and providing timely insights and client updates through channels such as Allsup’s commercial blog. Steve’s educational background includes a law degree from the Nashville School of Law, where he graduated in the top 10 of his class, and a bachelor’s degree from The State University of New York. He currently is an adjunct professor of Social Security Disability Law at the Nashville School of Law.