I have been on disability leave for the past 14 months owing to my battle with acute leukemia. During that initial time, I received short-term disability and six months ago, began receiving my Social Security monthly payment. I am 62 years of age and don't wish to stay retired. My cancer is in remission!!!
Since receiving the monthly Social Security payment, my employer and I came to an agreement that I would retire and receive a severance package payable over a three-year period. The annual payout (@$50,000) is greater than the annual Social Security payout.
I have been told that I should notify the Social Security office that I am receiving this monthly, employer-provided payout and to expect that I can keep both the monthly Social Security funding and my monthly severance without penalty for a 39-week period. Owing to the income limits on all Social Security recipients, I was also told that at the end of the 39-week period, I must give up the Social Security benefit until receipt of the payout ceases. Is this correct? Loss of either payout will impact me in a negative financial way unless I find another job to supplement the employer-provided payout. (I began receiving the employer-provided payout one week ago.)
3 Comments
Sarah Goodell
Aug 26, 2014
Cancer and Careers Staff Comment:
Hi Cephas,
Thanks for reaching out and it's wonderful that you're in remission! I have sent your question off to our legal experts, who will get back to you soon. In the meantime, the National Cancer Legal Services Network may also be able to provide you with some helpful information: http://www.nclsn.org/
Best,
Sarah, Cancer and Careers Associate Manager of Programs
Monica Bryant
Aug 27, 2014
Cancer Rights Attorney Comment:
Dear Cephas,
Congratulations on your remission! It can be complicated to figure out how all of the pieces fit together. I am assuming that you are receiving Social Security Early Retirement Benefits, as opposed to Social Security Disability Income (SSDI). If that is correct, then generally, you are only able to earn a certain amount each year ($15,480, for 2014), without it affecting your Social Security payment. However, the Social Security Administration (SSA) makes an exception for something called a "special payment," which would include a severance payment.
You should contact the SSA and let them know about the severance payments and explain that these payments were for work done prior to retirement (rather than ongoing work). If the SSA determines that this severance qualifies as a special payment, you should be able to keep both your retirement and your severance payments.
This resource from the Social Security Administration explains more about special payments: http://www.ssa.gov/pubs/EN-05-10063.pdf
I hope that helps!
Best,
Monica Bryant, Esq.
Cancer Rights Attorney
COO, Triage Cancer
Please note that the above information is designed to provide general information on the topics
presented. It is provided with the understanding that the expert is not engaged in rendering any legal or professional services in the information provided above. The information provided should not be used as a substitute for professional services.
Cephas B.
Aug 27, 2014
Thank you. I will look into this right away.
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