How Workers' Comp Affects Disability Benefits
Posted on behalf of Phillips Disability, P.C. on Nov 02, 2015 in SSD
If you are receiving Social Security Disability (SSD) benefits, workers' compensation and other public disability payments could negatively impact the amount of disability benefits you are eligible for.
If your income exceeds a limit set by the Social Security Administration (SSA), you may have your Social Security Disability benefits reduced to offset the additional compensation you receive.
Public Benefits That Do Not Impact Your Social Security Disability Benefits
Although workers compensation and other public disability benefits do affect your Social Security disability benefits, there are some that will not.
Receiving payments from Supplemental Security Income, Veterans Administration benefits, damages from negligence lawsuits, employer paid sick pay, and local and state government benefits should not reduce your SSD payments.
The sum of your monthly Social Security Disability benefits, along with any workers' compensation or other public disability payments, cannot exceed 80 percent of your average current earnings or the amount you earned prior to becoming disabled. Any excess amount will be deducted from your SSD benefits.
Calculating Average Current Earnings
The SSA uses various formulas to determine your average current earnings. Which formula is used depends on the specific circumstances surrounding your situation.
If your current earnings changes at any point, make sure to let the SSA know, as any change could affect the amount of SSD benefits you receive. You should also let them know if you receive your workers compensation or any other payments in a lump sum rather than on a monthly basis.
The Social Security Disability benefits process is a complicated one. For advice and guidance on applying for and receiving your benefits, contact our disability benefits lawyers for a free case evaluation.