The differences between Veterans Disability Compensation program (VDC) and the Social Security Disability Insurance program
The Congressional Research Service outlines the differences between Veterans Disability Compensation program (VDC) and the Social Security Disability Insurance program under the Title II of the Social Security Act (SSDI).
According to the report, these are the primary differences:
SSDI is an insurance program that replaces earnings for a person whose illness or injury, which is not necessarily work-related, results in an inability to perform any substantial gainful activity.
VDC is not insurance, but a compensation program that pays benefits to veterans who develop medical conditions that are related to their military service.
SSDI provides both civilians and military persons due to their inability to work because of a long-term illness. These benefits may be subject to income tax.
VDC provides veterans with tax-free cash benefits for service-connected illnesses or injuries. The inability to work is not a prerequisite for benefit entitlement.
SSDI only compensates workers who are fully disabled.
VDC will compensate veterans for both fully as well as partially disabling conditions.
SSDI is an entitlement.
VA regards disability compensation as on obligation owed to veterans, for injuries that were incurred or aggravated by their service to the country.
SSDI eligibility tends to be more stringent than VDC.
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