New Senate Bill Proposes Reduced SSDI Benefits for Those Receiving Unemployment Benefits

On June 6, 2013, a bipartisan group of Senators introduced a bill that would reduce a person’s SSDI benefits for any month that they also received unemployment insurance (UI) benefits. The bill has been referred to the Senate Committee on Finance, which has yet to schedule a hearing date.

“The Reducing Overlapping Payments Act,” says that any month a person is entitled to SSDI benefits and unemployment compensation, SSDI benefits for that month “shall be reduced to zero.” However, the bill does say that affected individuals need reasonable notice and an opportunity for a hearing.

Under the bill, receiving UI benefits would reduce SSDI benefits for the same month, but would not make individuals ineligible for SSDI benefits in later months. SSA’s long-standing policy has been that receiving UI benefits is a factor to be considered, but does not determine a claimant’s ability to perform substantial, gainful activity.

Information for this post provided by the NOSSCR issue Volume 35, Number 3 June 2013

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