Disability retirement planning

All people pay social security when they work and this allows them to claim a wide range of benefits when they retire. But serious accidents can happen – for instance, people could be injured on their jobs and they can end up taking a longer period of time off their work. Sometimes, this situation could also lead to the so-called permanent disability and the injured employees will never be able to get back to work again. A permanent disability would have a strong effect on all your retirement funds because you wouldn’t pay into the social security anymore. This effect will depend on how you will be compensated for your disability and when you were injured.

Social Security Administration has a very clear definition for disability – it is a condition, mental or physical, which prevents the employee from being gainfully employed. This situation must last for at least 1 year. Social Security Administration has its own list of conditions that may deem a particular case as being able to qualify for disability. But not all the disability benefits affect your amount of social security.  For instance, one of these disability benefits may come from the Veteran’s Administration if the disability is a direct result of your military service. Other benefits can come from your local government as well in case that you are entitled to veteran benefits.

Finding out whether the employer offers a disability retirement plan or not is a wise move because, if the answer is yes, you may consider yourself a lucky person. In general, the employers aren’t required to offer such disability retirement plans. The positive thing about a disability plan is that benefits are given by the employer to all the employees who have become disabled while in their service. If your employer is open enough about trying and implementing the disability retirement plans for your colleagues and yourself, then you may rest assured.

No one knows what will happen next to his or her physical or mental health. There are plenty of uncertainties in every workplace. Once you meet a serious accident while you are working, your bright future may become doomed and you will find it hard to imagine yourself financially unstable and disabled. So, a disability retirement program offered by your employer is a huge benefit for you and your colleagues. However, this plan will have certain requirements in order for you to get its full benefits. The disability retirement plan extends to the employees of all age. In general, this plan is negotiated as a specific percentage of the highest amount of compensation the employee has already paid.

The employer who is willing to offer you a specific disability retirement plan will also offer a service retirement plan. The main difference between these two plans is that the service plan will provide a lifetime income for the employee who has reached a minimum age (usually, this age is around 60) or has completed a specific number of years in service. This difference is important because your rights must be protected when it comes to being provided with a service retirement plan or a disability retirement plan. Your individual rights would be violated in case that you can qualify for both these plans but your employer forces you to take the disability retirement plan that wouldn’t offer you the same compensation as the service retirement one.

It is illegal for the employer to exclude an employee who meets all the requirements of a disability retirement plan but also has a particular disability. Actually, there is no difference in what type of disability an employee suffers from. The truly important fact here is that the employee suffers from a disability, regardless of its nature. The employer must not discriminate on various types of disabilities when it comes to offering the disability retirement plan. Keep in mind that a disability retirement plan is also a great deciding factor when trying to choose between various places of employment.



 
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