April 23, 2011

Information About Private Pension Benefits

Many claimants who file a claim for Social Security Disability benefits receive a letter from SSA entitled "Potential Private Pension Benefit Information". This letter informs a claimant that he/she may be entitled to some private pension benefits upon retirement. Normally, the letter gives a specific pension name, plan names and address. It may also disclose an estimated amount of benefits.

1020934_retirement_money.jpgHow does the SSA know this information? Why is the SSA sending that information? Is this SSA disability? All private pension plans are required to report the names and social security numbers of the plan's beneficiaries to SSA and the IRS. SSA computers are able to match a Social Security Disability claimant's social security number to the social security numbers reported by the plan. Federal law requires that SSA notify all potential plan beneficiaries of the fact that they have been reported as a potential beneficiary under a private pension plan. Many plan beneficiaries do not know that they are potential beneficiaries of private pension plans. The government actually wants the plan beneficiaries to know of the existence of their plan. The government also encourages plan beneficiaries to make a claim for benefits if proper.

The notice does not insure that a person will actually receive private pension benefits. Instead it is meant only as a notice that the matter should be followed up with by the person receiving the letter. The notification letter has nothing to do with the disability claim itself.


April 8, 2011

Social Security and Possible Government Shutdown

As many of you known, if there is no agreement on the federal budget by midnight tonight, there will be a partial government shutdown. This shutdown will last until there is a budget agreement. As of today, SSA has issued plans for how it will operate during any shutdown. Here are some of the highlights:
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Will Disability Payments Continue? Yes. SSA has recognized that disability payments under Title II and Title XVI are funded indefinitely through trust funds. As a consequence, those payments will continue.

Will the Local SSA Offices Be Open? Yes, the SSA offices in Indianapolis, Anderson and throughout the nation will be open but on reduced hours and for only critical functions. For example, disability applications and adjudications will continue but the issuance of new and replacement SS cards will not occur.

Will ODAR Hearings Be Held? Yes. All scheduled ODAR hearings at the Indianapolis ODAR as well as throughout the nation, will be held. No new cases will be scheduled. The ODAR offices will not have employees except for security personnel. The ALJ will continue to decide cases but those decisions may not be written and mailed out during the shutdown.