Q: Will my monthly Social Security Disability benefits be reduced if I am receiving Workers Compensation payments?
A: If you receive Workers’ Compensation benefits for a work-related injury or illness and are found eligible to receive Social Security Disability, you may receive notice that your Social Security benefits have been reduced. You will need to provide Social Security with information related to your Workers’ Compensation benefits so that they may make the necessary calculations.
The total amount of benefits from both programs (Workers’ Compensation plus Social Security Disability) may not exceed 80% of your “average current earnings” before you became disabled. If it exceeds that amount, there will be a reduction in your Social Security Disability benefits equal to the amount you were over. Social Security uses different formulas to calculate”average current earnings.”
Example: Your average current earnings prior to becoming disabled were $3,000 a month. Your monthly Social Security Disability benefits (for the sake of this example) are $1500 plus you receive $2000 a month in Workers’ Compensation. Because the total amount of benefits you would receive ($3500), is more than 80% of your average current earnings, ($2400), your Social Security benefits would be reduced by the difference, in this case, $1100.
The offset will continue until you reach age 65 or until your Workers’ Compensation payments stop, whichever happens first. It is important to report any changes in your Workers’ Compensation payments (ie: increase, decrease or Workers Compensation payments stop), as it will likely affect the amount of your Social Security benefits. Any raises in your Social Security Disability benefits after the date you were first found “disabled” are not affected.
If you or a loved one has suffered an injury, illness or death related to the workplace, call VanDerGinst Law at 1-866-843-7367 or click here for a FREE online case evaluation. The initial consultation is free of charge. If we agree to handle your injury case, we will work on a contingency fee basis, which means we get paid for our services only if, and when, there is a money recovery for you. In many cases a lawsuit must be filed before an applicable expiration date, known as a statute of limitations. So please call right away to ensure that you do not waive your right to possible compensation.