What might be the impact of lower DI benefits on the SSI disability benefit program?
Issues here are similar to those discussed under the IA plan. New issues, however, apply to the PSAs relative to the IAs at disability or death before retirement. Question 3: How would a disabled worker’s benefit change when he/she reaches retirement age? Under the PSA plan, a disabled worker would shift from an entirely PIA-based disability benefit, to a retirement benefit that is a blend of the new two-tier benefit and the PIA-based benefit he had previously received. When disabled workers reach age 65, they would shift to a blended basic benefit made up of (1) their PIA-based DI benefit times the fraction of their work life they received DI, plus (2) a tier 1 retirement benefit times the fraction of the work life spent working.(9) The PSA account balance would become available when the disabled worker reaches age 62. The worker could use it as he or she saw fit. Thus, under the PSA plan, a disabled worker’s basic defined benefit amount would change at retirement age — generally it
Related Questions
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- What might be the impact of lower DI benefits on the SSI disability benefit program?
