The Social Security system in the United States is an important part of economic protection for many people. The system was created almost 80 years ago to ensure that the citizens of the nation were protected against unexpected hazards and disasters that could threaten oneâ??s financial security in Pennsylvania or any other state. In 1965, lawmakers decided to add Social Security Disability Insurance (SSDI), because long-term disability insurance on the private market was not providing affordable and adequate protection for workers.
Now, almost every American is covered by SSDI. Today, 91 percent of workers between the ages of 21 and 64 are protected. This is about 160 million workers in the United States. Around 8.9 million workers with disabilities are receiving benefits from disability insurance, which includes over 1 million U.S. veterans.
However, the benefits are not free hand-outs as some may characterize them. Workers actually earn these benefits throughout their lifetime. Both employers and workers will pay to fund SSDI via contributions through payroll taxes. Under current law, workers pay 6.2 percent of the initial $117,000 of earnings every year, while employers are required to put in the same amount.
On the other hand, benefits under SSDI are reserved for those whose disabilities or illnesses will not allow them to support themselves. The standards for eligibility are rigorous in Pennsylvania and elsewhere. This is why it is important to correctly fill out the documents sent to the proper regulating agencies in order to ensure that one is legally eligible to obtain benefits. In some cases, one will have to appeal an initial denial by the regulating authorities.
Source: Center for American Progress, “Social Security Disability Insurance“, Rebecca Vallas and Shawn Fremstad, July 8, 2014