When claimant’s are entitled to both SSD and SSI benefits there must be a reduction or offset. There is a significant delay by the payment center until these calculations are complete which means you have won your case but you have to wait longer for your payments. The Social Security Administration pays out SSI before SSD. Only then can the claimant receive retroactive SSD benefits. Any past due SSD benefits payable are reduced by the amount of SSI payments. This is known as the windfall offset determination.
Unfortunately, delays are not the only problem. Frequently, the Social Security Administration does not process the correct offset. Sometimes a claimant may never get the SSD money they are due and the notices can be so confusing that a claimant may not know they did not get every benefit they were eligible to receive. Other instances show the retroactive SSD money is paid but the wrong amount is sent to the claimant. Frequently there are underpayments and many overpayments too.
The Social Security Administration must develop a plan to correctly calculate and timely pay benefits under both programs. A recent report has been issued by the SSA Office of Inspector General on this issue.