Can You Collect SSDI and a Pension at the Same Time?

It is generally possible to collect both Social Security Disability Insurance (SSDI) and a pension. While certain conditions can influence the total amount of benefits received, understanding these interactions is essential for financial planning.

Understanding Concurrent Eligibility

Social Security Disability Insurance (SSDI) is a federal social insurance program managed by the Social Security Administration (SSA). It provides financial assistance to individuals who have worked, paid Social Security taxes, and are unable to engage in substantial gainful activity due to a severe medical condition that is expected to last at least one year or result in death. The amount of SSDI benefits an individual receives is based on their average indexed monthly earnings over their working lifetime.

A pension typically represents a retirement or disability benefit provided by a former employer or a government entity. Pensions are often earned through years of service, and their structure can vary widely. Receiving a pension does not automatically disqualify an individual from SSDI benefits. However, the key factor determining whether a pension might affect SSDI is whether Social Security taxes were paid on the earnings that formed the basis of that pension.

How Government Pensions Affected SSDI

Historically, two primary provisions could reduce Social Security benefits for individuals receiving certain government pensions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions were designed to prevent what was perceived as an unintended advantage for individuals who worked in jobs not covered by Social Security and also qualified for Social Security benefits through other employment.

The Windfall Elimination Provision (WEP) was a modified benefit formula that reduced an individual’s own Social Security retirement or disability benefits. This applied if they also received a pension from employment where they did not pay Social Security taxes, such as some state or local government jobs. The WEP reduced the primary insurance amount (PIA), which is the base amount used to calculate Social Security benefits. For example, for individuals with fewer than 30 years of substantial earnings in covered employment, the initial 90% factor in the Social Security benefit formula could be reduced to as low as 40%. There was a guarantee that the WEP reduction would not exceed one-half of the non-covered pension amount. However, the Social Security Fairness Act, signed into law on January 5, 2025, eliminated the WEP, meaning these reductions no longer apply to benefits payable for January 2024 and later.

The Government Pension Offset (GPO) affected spousal or survivor Social Security benefits. It applied if an individual received a government pension based on their own work for which they did not pay Social Security taxes. The GPO typically reduced the Social Security spousal or survivor benefit by two-thirds of the government pension amount. For instance, a monthly non-covered pension of $600 would reduce spousal Social Security benefits by $400. This offset could, in some cases, entirely eliminate the Social Security spousal or survivor benefit. Like the WEP, the GPO was also eliminated by the Social Security Fairness Act, effective for benefits payable from January 2024 onward.

Pensions Not Subject to Reductions

Many types of pensions do not lead to any reduction in Social Security Disability Insurance (SSDI) benefits. The determining factor is whether Social Security taxes were paid on the earnings that generated the pension. If FICA taxes (Federal Insurance Contributions Act taxes) were withheld from the paychecks that contributed to the pension, then that pension typically has no impact on SSDI benefits.

Pensions from private sector employment generally fall into this category. The vast majority of private sector jobs require contributions to Social Security, meaning the earnings are “covered” by the Social Security system. Therefore, a private pension earned from such employment does not affect an individual’s SSDI benefits.

Military pensions also do not reduce SSDI benefits. The Social Security Administration (SSA) views military pensions and SSDI benefits as separate entitlements, allowing individuals to apply for and receive both concurrently without one affecting the other’s eligibility or amount. U.S. military service members have paid Social Security taxes on their earnings since 1957.

Similarly, Veterans Affairs (VA) disability compensation does not reduce SSDI benefits. VA disability benefits are distinct from Social Security benefits and are funded by a separate budget, serving as compensation for veterans injured or made ill during service. Receiving VA disability compensation does not impact SSDI eligibility or the benefit amount.

Estimating Your Combined Benefits

Estimating your combined Social Security Disability Insurance (SSDI) and pension benefits requires careful consideration of your earnings history and the specific type of pension you receive. While the recent elimination of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) simplifies matters for certain government pensions, understanding your benefit amounts remains important.

A crucial first step is to access your Social Security statement. You can do this by creating a “my Social Security” account on the Social Security Administration (SSA) website. This online account provides personalized estimates of your future retirement, disability, and survivor benefits based on your earnings record. It allows you to review your earnings history.

For the most accurate and personalized estimate, contacting the Social Security Administration directly is advisable. The SSA is the authoritative source for benefit calculations and can provide specific details relevant to your individual situation. Before contacting them, gather all relevant pension information, including the pension amount, the start date of payments, and the type of employment from which the pension was earned.

The SSA also offers various online calculators that can help provide a general idea of potential benefits, though a personalized statement from your “my Social Security” account will be more precise.