Monthly Archives: February 2012

$1 Billion to Eliminate Social Security Waste

President Obama recently submitted his 2013 budget proposal to Congress, and his suggestions – or lack thereof – are drawing comments from Republicans and Democrats. His budget for the next year does not address the long-term solvency of Social Security, which is the biggest problem facing Social Security and which the payroll tax cuts we discussed on Monday make worse. Of course, what the lack of a plan means depends on to whom you talk. Democrats say it would be futile to argue about long-term Social Security plans during an election year, since Republicans would be more focused on winning elections than seriously negotiating. Republican presidential nominee front-runner Mitt Romney, on the other hand, criticized President Obama for not discussing how he would make Social Security solvent. One budget item that may help Social Security and current and future beneficiaries is that President Obama earmarked $1 billion towards ensuring that…
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Payroll Tax Cuts to Last All of 2012 – Are They Worth It?

A secure Social Security system down the line or hundreds of dollars in savings per family right now – that is the dilemma that lawmakers and President Obama faced as they debated whether to extend the payroll tax cut that had temporarily been in place for 2011. The 2011 cut was meant to be a form of economic stimulus, as it trimmed two percent from the taxes that workers pay into Social Security. The problem is that this takes money away from Social Security, which, for most of its history, has remained self-funded. Only in 2010 did Social Security begin paying out more than it is taking in, and fears are mounting amidst estimates that both retirement and disability benefits may run out of money in the next two to three decades. After temporarily extending the payroll tax cut through the end of February, Congress recently decided to make the…
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Workers’ Comp Settlement Can Impact your SSDI Benefits

If you receive both Social Security Disability Insurance (“SSDI”) benefits and workers’ compensation, you may be able to structure your workers’ compensation payments to minimize the impact that these benefits will have on your SSDI benefits. If you think this might be an option for you, we recommend that you speak with an expert at a Tulsa Social Security disability law firm. Often times, rather than paying workers’ compensation indefinitely, a company will offer a worker a one-time settlement to close the case. When the worker accepts this settlement, how the Social Security Administration (“SSA”) considers this payout has an impact on the amount of SSDI benefits the worker can receive. For example, the SSA may take the settlement lump-sum and use that to offset all of your SSDI benefits until your settlement money is gone. For example, if your settlement is for $100,000 and you had been receiving $2,000…
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Workers’ Comp Can Reduce Your Disability Benefits

Along with other public sources of disability benefits, workers’ compensation benefits can have an impact on your eligibility for Social Security Disability Insurance (“SSDI”) benefits. The types of benefits that can impact your SSDI eligibility include workers’ compensation, civil service disability benefits, state disability benefits, and any other benefits that come from the government and are based on a disability or medical condition. The Social Security Administration (“SSA”) wants to avoid paying SSDI benefits to someone who is already receiving benefits that are nearly the same amount as what the person earned before becoming disabled. For this reason, the SSA adds up all of the benefits outlined above that you are receiving and compares that total to 80 percent of your average earnings before you became disabled. The SSA deducts the amount that you are receiving above the 80 percent line from your SSDI benefits. Some public benefits do not…
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