We often receive questions from clients about Social Security Disability Insurance (SSDI) and workers’ compensation, and whether the benefits offset each other—unfortunately, in many cases, this is true.
Many workers who receive workers’ compensation are also eligible for SSDI, even if their disabilities are work-related. However, in these situations, workers typically are not allowed to collect the full amount of Social Security benefits, because the amount of money they receive in workers’ compensation counts against their income.
In most cases, the Social Security Administration (SSA) will reduce the monthly SSDI amount allotted to a person who receives workers’ compensation benefits—this is called an “offset”. The process to determine how much a person will receive is incredibly complicated, as each state has different rules about maximum workers’ compensation that can be paid out, which has an impact on SSDI.
In addition to any workers’ compensation that is paid on a weekly basis, a lump sum workers’ compensation settlement can also have an effect on how much a person can receive in SSDI benefits.
Keep in mind, by working with an experienced attorney, you can reduce the negative financial consequences of workers’ compensation and/or a lump-sum payout by constructing an agreement that specifies how to treat the payments or work out a financial plan.
How Can I Collect Social Security Disability and Workers’ Compensation?
We suggest visiting our Social Security FAQ page if you have questions about qualifying for SSDI benefits.
It should be noted that to qualify for SSDI, a person suffering from a disability has to show the SSA that his or her condition will last longer than 12 months. For more information about the SSDI application or appeal process, you can speak with our attorneys.
Troutman & Troutman, P.C. – Tulsa Social Security disability lawyers
Troutman Touts: Only 48 percent of those who sought SSDI benefits were approved at the hearing level in 2013.
