If you are a disabled person who was injured in an accident that wasn't your fault, and you recently applied for Social Security Disability Insurance, you are probably curious about how much money you may receive each month. Contrary to what you may assume, Social Security Disability Insurance (SSDI) is not dependent upon your income or severity of your disability. It is based on your average lifetime earnings before you became disabled. As of April 2016, the average monthly SSDI payment for disabled workers is $1,166.13. Keep reading to learn more about how this monthly figure is calculated, so you can get an idea of how much money you will receive.
The Mathematical Formula
The reason it is impossible to determine exactly how much money your monthly SSDI payment will be is because it's different for everyone. Payments are calculated for every person using a complex weighted mathematical formula. But, if you know the formula, you can use it to obtain an estimated benefit payment amount.
First, Social Security looks at your covered earnings. This is the amount of income you've earned and paid Social Security taxes on over the span of your lifetime. They will use this information to calculate your AIME, or average indexed monthly earnings.
Next, a formula is applied to your AIME to determine your primary insurance amount (PIA). This formula is made up of bend points, which are basically fixed percentages of different amounts of income. These percentages may change on an annual basis. The resulting figure should be or come pretty close to what your monthly benefit payment will be.
Using the 2016 bend points linked above, 90% of the first $856 of your AIME is added to your PIA. You also then add 32% of your AIME that falls between $856 and $5,157 and 15% of your AIME that is more than $5,157 to your PIA. You now have a good idea as to what your monthly SSDI payment will be.
Finding Your Covered Earnings History
Most people don't have their covered earnings history readily available. But don't worry. You can easily obtain this information from your annual Social Security Statement. If you don't have your most recent statement, you can also go to the SSA website to get it. If you'd rather deal with a person directly, you can visit your local Social Security office and a representative would be happy to help you estimate your monthly benefit amount.
Other Disability Payments
Keep in mind when determining your potential monthly SSDI benefit payment that if you are receiving disability payments from a government-regulated program, your payment from SSDI may be reduced. The programs that affect your monthly benefit include temporary state benefits and workers' compensation. All of your disability benefits added together cannot equal more than 80% of your average earnings before you became disabled. If they do, your benefit payment will be reduced. If you are receiving money from a private insurance policy, SSI, and/or VA benefits, these payments will not affect your SSDI benefit.
If you have more questions about disability benefits or you have been denied benefits and would like to appeal, contact your local personal injury lawyer. He or she would be happy to answer all your questions and help you get the benefits you deserve.
For more information, contact experts in social security disability, like Waycaster & Allred.
About a year ago, I was left dealing with injuries sustained during a serious car accident. I was worried that I would never be the same, so I decided to start looking into ways to make things right. After thinking about the wreck, I realized that since it wasn't my fault, I shouldn't be left with all of the medical expenses. I decided that I needed to look into things a little further, and I decided to file a personal injury lawsuit. My lawyer helped me to come to grips with the extent of my injuries and helped me to make things right. This blog is all about understanding personal injury lawsuits.