While workers in the United States have many protections, it can be difficult to understand both state and federal social security disability. To add to the confusion, the U.S. government uses a complicated formula to determine your benefits.
Both the federal government and the state of California offer social security benefits for people that are unable to work and earn a living. What type of benefits you are entitled to depends on your work history as well as the nature of your illness, injury, or handicap.
Luckily, the attorneys at the House of Justice are experts on state and federal social security disability programs.
What are the Differences Between SSI, SSDI & SDI Disability?
Federal programs are handled by the Social Security Administration (SSA), while California handles claims through the Employment Development Department.
Supplemental Security Income (SSI)
Supplemental Security Income (SSI) is a large program run by the SSA that provides financial assistance to people who are blind and permanently disabled. The application process for SSI coverage is unrelated to your work history.
Social Security Disability Insurance (SSDI)
Social Security Disability Insurance (SSDI) is a federal program that helps individuals and family members if a person is injured or sick and unable to work for an extended time. Since you must meet minimum work criteria to get SSDI coverage, it can be difficult to qualify for the program.
California State Disability Insurance (SDI)
California State Disability Insurance (SDI) is a state-run platform that “provides short-term Disability Insurance (DI) and Paid Family Leave (PFL) wage replacement benefits [for one year or less] to eligible workers who need time off work.”
How Does the SSA Determine My SSDI Benefits?
The SSA uses a complex formula to figure out your monthly SSDI benefits. Since these benefits are only paid to people with long work histories, you can’t negotiate with the SSA on your eligibility. There are several key factors that the SSA uses to determine your monthly benefits.
Primary Insurance Amount (PIA)
The first metric to consider for the SSA formula is the average salary you earned each month throughout your work history. Importantly, the SSA adjusts these averages based on your historical wage growth.
Once the SSA has figured out your adjusted monthly salary, it adds that total into a formula to determine your primary insurance amount (PIA). Importantly, the SSA has weighed the PIA formula to level out benefits options for those people who have earned less over their lifetimes than higher paid workers.
Work History & Date of Injury / Illness
The SSA uses a rather complex method for assessing your eligible work history as it relates to your monthly social security benefits. To figure out your PIA, the SSA bases your monthly benefits on the year you began work until the year you became injured or sick.
Due to the confusing nature of terms like “cost of living adjustment (COLA),” in figuring monthly payments, you’re well-advised to work with attorneys in figuring these numbers. Even more, the team at the House of Justice will ensure that you are paid for retroactive SSDI benefits for the maximum time possible.
How Does the EDD Determine My SDI Benefits?
The California Employment Development Department EDD has its own requirements for determining monthly State Disability Insurance (SDI) benefits.
Rather than monthly payments, the EDD figures a Weekly Benefit Amount (WBA) that is based on your annual income. According to the EDD website, your weekly benefit is figured by estimating “60 to 70 percent of the wages you earned 5 to 18 months before your claim start date and up to the maximum WBA.” As seen with federal social security, California SDI claims start at the time of your illness or injury.
To make it easier to estimate your SDI benefits through California, the EDD website provides a calculator tool. You can find it via this link.
FAQs on Monthly Benefits
As leading SSDI attorneys, the team at the House of Justice ran into common questions regarding monthly benefits.
How does federal SSDI affect CA SDI?
Many people opt to apply for both federal and California social security disability when unable to work. However, according to the Disability Benefits 101 website, if you are paid for SDI and SSDI payments at the same time, “your SSDI will be reduced.”
Because CA benefits only cover people for one year, many people opt to use SDI benefits during the application process for federal SSDI benefits that can last a lifetime.
How Much in total disability benefits does the SSA allow?
Since SSDI benefits are derived from your lifetime income, everyone gets a unique monthly package. However, the SSA limits the amount of money that can be paid to a single person per month via SSDI. In 2023, the SSA implemented a maximum [monthly] benefit of $3,627, which is an increase of 8.7% from the 2022 payment of $3,345.
What is the average monthly SSDI payment?
While each worker in the United States is eligible for different monthly SSDI benefits, the average monthly payment in 2023 is $1,483 which is a $119 increase from the 2022 payment of $1,358.
Talk to the House of Justice
At the House of Justice, we understand how overwhelming and stressful the process of filing for disability benefits can be – especially if you don’t know if you even qualify in the first place. That’s why we offer free consultations with our lawyers to help set your mind at ease and figure out the best plan of action.
The House of Justice specializes in disability benefits claims and will be with you every step of the way – from filing the initial claim to preparing you for your interview and beyond all over the phone, so you don’t have to leave home. Contact us today at 1-800-840-4040 for a free consultation in 10 minutes or less.
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