Calculating SS disability freeze impact on PIA?

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Topic Author
Weathering
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Joined: Sun Oct 15, 2017 4:20 pm

Calculating SS disability freeze impact on PIA?

Post by Weathering »

Does anyone know how to calculate the impact of a social security disability freeze on the PIA?

My brother has been on social security disability for 5 years (from age 47 to age 52) and now he has been working again for 4 years. He told me that his eventual social security amount will go down because he is working again, but he isn’t going to let that tail wag him as the dog. He is earning $70k now instead of the $200k he earned at age 46. I’m glad he is working again and I’m hoping to find out enough that I may be able to tell him the actual affect of his return to work on his eventual ss PIA amount.
Last edited by Weathering on Fri Feb 25, 2022 11:11 pm, edited 1 time in total.
Topic Author
Weathering
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Re: Calculating SS disability freeze impact on PIA?

Post by Weathering »

Interesting result of research. My brother’s disability guarantee is $3,400/month. But his other two methods of calculating PIA are both less than $3,000/month. So, it seems he may be right that working (earning) for the next several years after disability may not benefit his eventual SS PIA (it will benefit him in other ways including $$$ in the bank and a sense of accomplishment after not being able to do much).

I had no idea there were several ways to calculate the PIA. One was 35 years of earnings. Another was 40 years of working minus the months he was on disability, and the third was a guarantee that his eventual PIA could not be less than his disability payment. After doing all three calculations, it showed his disability guarantee will most likely be his PIA. This is because he now works at 1/3 his previous salary after 5 years of disability.

So, if someone had a PIA of $3,400 (not indexed for inflation because it is locked) and they were 56 years old, should they begin SS at 62, 67, or 70 (assuming average life expectancy). All the calculators do not handle this scenario because his PIA will not change with COLA increases.
Topic Author
Weathering
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Re: Calculating SS disability freeze impact on PIA?

Post by Weathering »

We clearly have more research to do...
Last edited by Weathering on Fri Feb 25, 2022 11:13 pm, edited 1 time in total.
Topic Author
Weathering
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Re: Calculating SS disability freeze impact on PIA?

Post by Weathering »

duplicate
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HueyLD
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Re: Calculating SS disability freeze impact on PIA?

Post by HueyLD »

Weathering wrote: Sun Jan 16, 2022 10:59 am Does anyone know how to calculate the impact of a social security disability freeze on the PIA?

My brother has been on social security disability for 5 years (from age 47 to age 52) and now he has been working again for 4 years. He told me that his eventual social security amount will go down because he is working again, but he isn’t going to let that tail wag him as the dog. He is earning $70k now instead of the $200k he earned at age 46. I’m glad he is working again and I’m hoping to find out enough that I may be able to tell him the actual affect of his return to work on his eventual ss PIA amount.
SSA says: "Cost-of-living adjustments each January, your benefits will increase automatically if the cost of living has gone up.”

https://www.ssa.gov/pubs/EN-05-10153.pdf

Also, once he gets to FRA, he will no longer be on disability.

SSA: "When you reach full retirement age
If you’re receiving Social Security disability benefits, your disability benefits automatically convert to retirement benefits, but the amount remains the same.”

Retirement benefits get COLAs.
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