Workers’ Compensation Benefits Offset Social Security Disability Payments

by DISABILITY PROFESSIONALS on December 21, 2012

If you receive workers’ compensation (WC) payments or a settlement award from a WC claim, the Social Security Administration will lower your disability payments. You can be eligible for both types of payments at the same time, however, workers cannot receive the full amount of Social Security disability benefits and workers' compensation benefits at the same time.

In most situations, Social Security requires that Social Security disability insurance (SSDI) benefits be reduced so that the total monthly amount that a disabled worker receives is no more than 80% of the amount he or she earned when fully employed. The process of Social Security reducing disability benefits to account for worker’s compensation is called a worker’s compensation “offset.” The rules about how Social Security calculates worker’s compensation offsets are complicated.

Worker’s compensation programs vary from state to state, and each state has different rules about things like the maximum workers' compensation that can be paid out, the different categories of benefits, and the ways a claimant can settle a worker’s compensation case.

Our next blog will discuss the calculation Social Security uses for the Worker’s Compensation offset.

Getting Legal Help

If you or a loved one needs to pursue a disability claim or wishes to discuss claim eligibility, give Disability Professionals a call at 855-201-9569 or email DisabilityProfessionals to set up your appointment today.


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