There is a significant difference between Social Security and a pension. It is true that certain facets of Social Security may appear similar to a pension; it is not administered as such. Pensions are benefits due at retirement, they are given to retirees who either paid into a private plan or their pension was part of their employer’s benefits program. Social Security in New York on the other hand is social insurance which provides numerous benefits, one of which is a monthly cash benefit to the elderly.
There are a number of ways that a pension can be funded; employees can pay into a pension plan while employed or they can fund their own private plan that upon their retirement works as a pension. Many people are employed by companies that fully fund a pension plan; often a trade union is involved. The rules of a private pension plan are somewhat flexible, the money can be held in escrow, to be taken out upon retirement or in some cases the money is available as needed.
In the United States the Social Security Administration (SSA) provides numerous benefits to retirees, those who suffer from a physical or mental disability which negates their ability to work, surviving spouses as well as minor children of someone who has died. The SSA is responsible for approving payments to beneficiary’s, the money that is used to provide these benefits comes from payroll taxes that are paid into the system during those years the individual is working.
Social Security in New York and a conventional pension plan have one key difference; Social Security is administered by the government while a pension is administered by a private concern. Pensions provide retirement income but are not applicable to those with disabilities unless the disability is work related or to people that have never worked and paid the applicable taxes.
Many people who have worked for years get benefits from both Social Security and a private pension upon their retirement. Social Security benefits are quite low, rarely enough for the beneficiary to live on unless he or she is unencumbered by a mortgage or has some other source of income. This is not the case with a private pension; it has been designed and funded so there is sufficient money to allow the retiree to live on the monthly payments alone.
Social Security retirement benefits are not difficult to get, this is not the case with benefits for those with a disability. If you suffer from a disability and wish to apply for Social Security in New York you are invited to discuss the details of your case with Daniel Berger, Attorney at Law. Go to the site nydisability.com for more details.