Social Security Disability Insurance (DI) provides monthly benefits to workers who are unable to work due to a significant illness or impairment. These benefits are based on the disabled worker’s past earnings and are paid to the disabled worker and their dependent family members. To be eligible for DI benefits, a disabled worker must have worked in jobs covered by Social Security.
In July 2017, 8.8 million disabled workers received DI benefits, with an average benefit of $1,172 per month. Workers and employers contribute to the DI program through Social Security taxes, with a combined tax rate of 12.4 percent for disability and retirement benefits. The disability insurance trust fund received $160 billion in 2016, with total payments of $146 billion mainly for benefits to disabled workers.
The Social Security test of disability is strict, requiring individuals to be unable to engage in any substantial gainful activity due to a medically determinable physical or mental impairment. State agencies make the determinations for disability benefits based on medical records, work history, and other factors. There is a five-month waiting period after the onset of disability before payments begin.
Many disabled worker beneficiaries have multiple conditions, with mental impairments and musculoskeletal conditions being common. About 30 percent of disabled workers have incomes below 125 percent of the poverty threshold, highlighting the financial challenges they face. Additionally, disabled workers are more likely to be older and have lower levels of educational attainment.
Overall, the DI program plays a crucial role in providing income support to individuals with disabilities, and discussions continue about potential changes to the disability definition and eligibility criteria. Stay informed about the latest updates on Social Security Disability Insurance and related topics.
Attribution:
This article was summarized and republished from the original source.
Please check the original article here: https://www.nasi.org/learn/social-security/what-is-social-security-disability-insurance/.