Workers’ Comp Settlement Can Impact Your SSDI Benefits

If you receive both Social Security Disability Insurance (“SSDI”) benefits and workers’ compensation, you may be able to structure your workers’ compensation payments to minimize the impact that these benefits will have on your SSDI benefits. If you think this might be an option for you, we recommend that you speak with an expert at a Tulsa Social Security Disability law firm.

Often times, rather than paying workers’ compensation indefinitely, a company will offer a worker a one-time settlement to close the case. When the worker accepts this settlement, how the Social Security Administration (“SSA”) considers this payout has an impact on the amount of SSDI benefits the worker can receive. For example, the SSA may take the settlement lump-sum and use that to offset all of your SSDI benefits until your settlement money is gone. For example, if your settlement is for $100,000 and you had been receiving $2,000 a month in worker’s comp, the SSA would continue to figure $2,000 a month for the next 50 months until the $100,000 is gone. $2,000 a month from worker’s comp would likely reduce your monthly SSDI benefits to zero until your settlement money is gone.

The SSA permits workers a way around this, though. Workers can avoid negative financial consequences with workers’ compensation lump-sum payouts by working with their employers to craft a settlement agreement that specifies how to treat the lump-sum. The agreement can specify that the lump-sum is intended to replace the worker’s wages for the rest of his or her work life, which would then spread out the settlement money further on a monthly basis, enabling SSDI benefits to continue.

Have you received a workers’ comp settlement while also receiving SSDI benefits? How did you deal with the settlement and its effect on your disability benefits?

Troutman & Troutman, P.C. – Tulsa Social Security Disability lawyers


    I didn't think there was a caring professional considerate attorney firm on the planet, but Troutman & Troutman proved me wrong. From the receptionist to the legal assistance to the attorney and more they were exceptional people.

    - Robert S.

    They did a fantastic job getting everything gathered up and getting the trial done as quickly as possible. Anytime I had a question they were patient and help me understand what was going on. Especially Christy and Charlie were great.

    - Michael M.

    Steve Troutman was able to get my short-term and long-term disability for me. Then Erin another lawyer for their firm got my Social security disability for me. Great people.

    - Billy S.

    Mr. Troutman walked me through the entire process. Heather was available each time I called, answered all my crazy questions, and helped me fill out forms along the way. I was never treated like I was wasting time.

    - Julia C.

    Erin and Keith were fabulous! They were compassionate, helpful, and very responsive! They made the process very smooth and painless every step of the way.

    - Valerie W.

We Are Here to Help 

Free & Confidential Consultations
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.