If you’re too hurt to work in New York State, you might wonder, “What is medical retirement?” Medical retirement allows workers to retire early if they have long-term disabilities that prevent them from doing their jobs. To qualify, you need a documented medical condition that stops you from working, and a doctor must confirm this disability.
You could be eligible for medical retirement through different systems depending on your employment. If you’re a military service member with a qualifying disability, you could be entitled to military retirement benefits. If you’re a city employee, you should be covered by the New York City Employees’ Retirement System (NYCERS). Social Security Disability is also available to many non-public employees.
Medical Retirement vs. Traditional Retirement
Medical retirement is a type of early retirement resulting from a long-term disability that renders you unable to work. Traditional retirement, on the other hand, usually happens when you reach a certain age or complete a set number of years of service.
For medical retirement, you must have a documented and approved disability. With traditional retirement, you simply choose to stop working.
Medical retirees sometimes qualify for disability benefits, while traditional retirees rely on pension plans or personal savings. Medical retirees also face fewer tax penalties if they make early withdrawals from their retirement funds due to their disabilities, unlike traditional retirees.
Disability Retirement Benefits Available in New York
New York medical retirees can access various disability benefits. Social Security Disability Insurance (SSDI) provides monthly payments to qualifying individuals. For SSDI, your disability must be long-term and prevent you from working. Supplemental Security Income (SSI) is also available if you have limited income and resources.
New York public employees, like city workers and teachers, can also collect disability through systems like NYCERS or the New York State Teachers’ Retirement System (NYSTRS). These programs provide income based on years of service and salary. Long-term disability insurance can also offer additional support, depending on your policy and employment. Each benefit program has its own rules and requirements.
Military Medical Retirement in New York
Military medical retirement applies to New York service members who cannot continue their service due to disabling conditions. The military must rate your disability at 30 percent or higher for you to qualify. You can receive temporary or permanent medical retirement, depending on your condition.
The Temporary Disability Retired List (TDRL) allows temporary retirement if your condition might improve. The Permanent Disability Retired List (PDRL) offers full retirement benefits if your condition won’t improve. Retired military members in New York also qualify for VA health care and other benefits that cover medical expenses and provide ongoing financial support.
Tax Considerations for Medical Retirement in New York
Remember to consider the tax implications if you plan to access retirement funds as a medical retiree. Normally, withdrawing from retirement accounts before age 59½ results in a 10 percent penalty. However, you can avoid this penalty as a medical retiree if your disability meets IRS requirements.
You still pay regular income tax on withdrawals from tax-deferred accounts like 401(k)s and IRAs. Social Security benefits may also be taxable, depending on your total income. If you receive a pension, it’s typically taxable as well. A disability lawyer can explain your specific obligations and help you avoid unexpected tax bills during retirement.
Legal Support for Medical Retirement Claims in New York
If you’re applying for medical retirement as a New Yorker, you need and deserve legal support. An attorney can handle the paperwork on your behalf and collect medical evidence to strengthen your claim. A lawyer can also represent you during appeals and hearings if your application gets denied.
Legal advice can also help you avoid delays in complex cases, like those involving workers’ compensation or SSDI. A lawyer can review your pension and benefits to see if you’re receiving the full amount you are due. Legal support is also essential if your medical retirement claim involves multiple agencies or systems. Working with a medical retirement attorney can significantly improve your chances of a successful outcome.
Contact a New York Medical Retirement Attorney Now
If you’re considering medical retirement in New York and need guidance, contact a New York medical retirement attorney from Fusco, Brandenstein & Rada, P.C. today for a free consultation. Our team can explain your options, review the benefits available to you, and assist you with the application process. Call us now at 516-496-0400 or contact us online and take the next step toward securing your financial future.