While admittedly it is a very limited sample, he said only 1 or 2 of his clients were not receiving the benefits as disability benefits. He’s the CPA who does their taxes so I’ll trust him on the tax treatment.

FWIW, his father was retired law enforcement and the other guy had numerours family members working in the public sector (USPS, fire, police etc) and/or receiving retirement benefits. They both see firsthand what these people get paid and they were both even more appalled by the earnings and benefits than me.