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CRR Examines State and Local Disability Benefit Structures for Potential Application to Social Security Disability

On September 15, 2020, the Center for Retirement Research at Boston College (CRR) published its issue brief, Could State and Local DI Programs Shed Light on Trends in SSDI?  According to the U.S. Social Security Administration, about 25% of workers will develop a work-limiting disability during their career.  For those unable to continue in the work force, certain programs such as Social Security Disability Insurance (SSDI) may assist to provide an economic safety net. The brief examines whether researchers should consider the disability insurance (DI) programs for state and local government employees to help assess whether the structure of the DI program affects claiming rates and other outcomes. 

The key findings include:

  • Typically, disability insurance programs are designed to provide income while maintaining work incentives, such as Social Security’s SSDI.
  • Policymakers should understand the design features of a DI program that would most effectively balance these dual goals.
  • In this effort, state and local disability programs can be used for further study since their eligibility criteria, administrative processes and benefit levels differ extensively.
  • The analysis suggests that this variation influences disability insurance claiming rates.

The report is available here.