Effect of Workers Comp on Social Security

If you become unable to work and quality for Social Security Disability benefits, there are certain other types of benefits that can reduce the amount of benefits you receive from Social Security. The following types of public disability benefits that can affect the amount you receive from Social Security Disability include:

Worker's compensation

• Military disability
• State-granted temporary disability
• Retirement benefits based on disability
• Any payments based on disability through the government, whether job-related or not

Any private benefits or insurance won't affect your Social Security Disability benefits.

Worker's Compensation

Worker's compensation is a special type of benefit paid on behalf the employer to an employee that often occurs when an employee is disabled. If worker's compensation benefits, combined with your Social Security Disability benefits, add up to more than 80% of your former average wages, then the Social Security Disability benefit will be reduced by the amount it takes your income over that 80% cutoff. This 80% includes any benefits paid to family members by Social Security. If the other benefits stop or you reach retirement age, the Social Security benefits will increase again.

Changes in Benefits

The Social Security Administration needs to know immediately in any changes in your worker's compensation benefits, or any other public benefits that could affect the amount of your Social Security Disability benefit. The amount can even be affect by changes in other benefits if you're to receive a lump sum disability payment.

If you draw Social Security Disability benefits and your other benefits increase (except Veteran's Administration benefits and private benefits), remember that the total amount you receive from all sources combined can't be more than 80% of what you earned before your disability made you unable to work. If the change cause your income to go above that, your Social Security benefits will always decrease by that amount. If your other benefits should decrease or stop, the Social Security administration should also be notified right away, as your Social Security Disability benefits will increase.

Lifetime Payouts

In some cases, worker's compensation benefits can be arranged in what's called a lifetime payout, which figures a lump sum over the course of years and reduces he affect on your Social Security benefits, without sacrificing your right to also collect worker's compensation benefits. An attorney can advise you on how to minimize the offset between the benefits.

Contact an Attorney in your local area today!