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Initial Claims for SSD Rising in Slow Economy

Posted: January 24, 2011

Initial claims for Social Security Disability (SSD) benefits are rising both throughout the nation and in New York State. During the fiscal year starting October 1, 2009 and ending September 30, 2010, filings in New York State were up by 11 percent, compared to the numbers filed during FY 2008 to 2009. Nationwide, initial claims rose 5 percent during FY 2009 to 2010. In Region II, which includes New York State, New Jersey, Puerto Rico, and the Virgin Islands, initial claims rose 7 percent during the past fiscal year.

According to the Annual Social Security Trustees report, the growth rate of disabled workers applying for and receiving SSD benefits is expected to increase over the next nine years. The report states: “Growth is largely attributable to the gradual progression of the baby-boom generation through ages 50 to normal retirement age, at which higher levels of disability incidence are experienced . . . These increases are projected to result from the economic recession.”

“Many people with disabilities hang on to their jobs because their employers make concessions for their health problems. For example a person with back issues may be allowed to take several breaks during a day. However, when that employee gets laid off, he or she will probably not be able to get the same concessions from a new employer,” said Jeffrey Freedman, senior partner, Jeffrey Freedman Attorneys at Law. “Plus, if a 25-year-old is applying for the same job, the employer is going to choose the young, healthy person over the more mature person who has health issues.”

Older workers who cannot find employment look to a variety of sources for income; they may take Social Security retirement benefits early, take income from their 401K fund, or apply for Social Security Disability.

“As the economy improves it is expected that the number of applications for SSD will begin to decrease. Some workers who have been receiving SSD benefits may even be able to find jobs that allow the concessions they need, and they’ll choose to work and will discontinue their SSD benefits until they absolutely can no longer work,” Freedman said.

Workers pay into SSD throughout their careers so they will have a safety net, should they no longer be able to work due to illness or injury. In order to obtain benefits, however, a claimant must prove he or she can not work at the job they have been doing or at any other job.

“It’s a long and arduous process,” Freedman said. “There has been a backlog in SSD cases for the past few years and, although the Social Security Administration has been diligent in trying to reduce that backlog, with the increases in initial claims there’s a danger it will start to rise again.”

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