How Does Workers Compensation Affect Social Security?

The effect of Regular Social Security, Social Security and Social Security Disability on workers compensation is complicated. Each have a different effect on your settlement and future medical care. The following are some answers to some common questions applicants have regarding Social Security and Social Security Disability Benefits.

What is the difference between Regular Social Security, Social Security and Social Security Disability?

Regular Social Security is retirement income you can begin to receive as early as 62 years of age. You have paid into this type of Social Security through Social Security Taxes you paid throughout your working life. Social Security Income (SSI) is not something you have paid into but is based upon age and disability. Social Security Disability Income (SSDI) is also not paid into but is based upon disability your disability or a disability a family member may have that can keep someone from working.

Can I Qualify for Both Workers Compensation and Social Security?

This question arises in a couple of different scenarios. The short answer is yes. You can qualify for both workers compensation and social security at the same time. Regular Retirement Social Security does not have any effect on workers compensation Temporary Disability or Permanent Disability payments. But SSI of SSDI benefits can be reduced if you are receiving Temporary or Permanent Disability payments. 

How Does Workers Compensation Affect Social Security?

While you can, in fact, receive both workers compensation and social security benefits at the same time, there usually is a limit to the amount you can receive.

Usually, even if you do qualify for both, the amount you end up receiving combined cannot be more than 80% of your income before you sustained the injury.

For instance, if after receiving 65% of your current earnings through workers compensation, you end up being eligible for an amount that gets the total above 80% of your current earnings, the amount you receive from social security will be reduced to a figure that balances the total to exactly 80%.

What Happens if There’s a Change in My Workers Comp Payments

SSDI is usually the benefit that gets adjusted to ensure the total amount you’re getting balances out at 80%. For this reason, if there is a change in your workers compensation payments (for example in a situation where it gets reduced or increased), you should endeavor to let the SSA know so that they can adjust your SSDI payments accordingly.

Failure to do so might lead to your SSDI benefits getting overpaid or underpaid.

What if I Receive My Workers Compensation as a Lump Sum?

Yes, it is possible to receive workers compensation benefits as a lump sum through a settlement package. In fact, in cases where you happen to be receiving workers compensation and social security at the same time, it may make sense to receive the former as a lump sum.

But, even if you do receive workers compensation as a lump sum, it doesn’t affect the 80% ratio. The Social Security Administration will still assume that you’re still receiving workers compensation, and the amount you get from SSDI may differ based on their prorate calculations. If you do receive a lump sum settlement, there are steps your attorney can take to mitigate the effect of the settlement on your SSI or SSDI benefits. Ask your attorney about a Hartman addendum to your settlement agreement.

Should I Have a Lawyer Help Me with My Workers Compensation and Social Security?

As you can see above, balancing workers compensation and social security benefits may get quite technical. Depending on the peculiar situation you find yourself in, you may end up receiving more or less than you ought to.

This is why it is actually very important to work with a lawyer. The Morris Law Group represents those who qualify for both workers compensation and social security. We help them handle their cases in such a way that ensures optimal outcome in both areas.

Contact us today for your initial consultation.