"NEVER WORKED A DAY AND GETS A SOCIAL SECURITY DISABILITY CHECK."

I talk to well meaning people almost every day who have been disappointed by a Social Security benefit decision. Often, these individuals say to me, "I know someone who never worked a day in his life, and he gets a Social Security disability check."

That simply is not possible under the law.

Social Security Disability Insurance (SSDI) requires that an individual work and pay FICA tax on his or her earnings before any benefit is available. Thus, a person who never worked has no SSDI coverage and no SSDI benefit. There are no exceptions. In fact, most individuals need to have accumulated at least 20 quarters of work out of the most recent 40 quarters to be covered.

It may be that individuals who have never worked are receiving Supplemental Security Income or SSI, under Title 16 of the Social Security Act. This is a separate program, totally different from Social Security disability. SSI has no work requirements but it's current benefit is limited to $738 per month. The benefit requires that the recipient have very restricted income and few financial assets. It is needs based or "means tested."

SSDI and SSI are two very different programs but both are administered by the US Social Security Administration. Therefore, they are easily confused. If a check comes through the Social Security office, it is referred to as a "Social Security check." But "SSI" does not stand for "Social Security Income," it stands for "Supplemental Security Income."

Here are a few differences between SSDI and SSI.

SSDI is Title 16 of the Social Security Act. It covers workers who worked and paid enough FICA tax to gain insured status. It has a 5-month waiting period, meaning--there is no benefit for the first 5 months of disability. The maximum benefit is $3,011 per month, and it's based on the average earnings of the individual claimant. SSDI is not needs based and there are no income restrictions. SSDI comes with Medicare after a 24 month waiting period.

SSI has both a disability requirement and severe financial/income restrictions. It is needs based and means tested. For example, an individual who has at least $2,000 in resources is disqualified for SSI, even if he/she is disabled. A couple who has at least $3,000 is disqualified. There is no waiting period for SSI. Payments may begin the month after the application is filed. This program comes with Medicaid (not Medicare) with no waiting period. The maximum benefit amount in 2020 is $783 per month, and may be less.

A lot of confusion may be avoided by first making this determination: Am I talking about SSDI (Title 2) or SSI (Title 16)? Very, very different programs.