February 4, 2008
How Do Workers Compensation Offsets Affect Social Security Disability Payments?
dear jonathan: i have been recieving ssd since around 2002 and also recieving workers comp (lifetime settlement)i am 53 years old.there is also a small payment from my ltd carrier, in the past they requested 13,000 back in which i paid because of approvel of ssd.i would like to know if ssd will want repayment of any of this money back also, I am over the 80% amount of former salery. i feel traped in this situation .i did use a law firm from the start and they handeled it all but never advised me on the details i described. to date ssd has never requested information on any other payments recieved .your advice would be appreciated ..thank you jonathan i would think a ssd review could come up in the next year.
–Manny
Jonathan Ginsberg responds: Manny, thanks for your question. Generally, workers compensation does offset Social Security. The question in my mind – does your SSDI payment already reflect an offset for workers compensation?
In Georgia, where I practice, Georgia workers compensation lawyers include special language in workers comp settlements that treats any lump sum settlement as if it was being paid over your lifetime. In my law firm, my wife Jodi Ginsberg handles workers compensation cases. If, for example, she settles a case for $50,000 for an individual who has a life expectancy of 30 years (per an actuarial table used in Georgia), this special settlement language treats the $50,000 not as a $50,000 lump sum but as $138.00 per month for 30 years. In this example, our claimant would see his SSDI reduced by $138 per month.
You need to speak to your workers' compensation lawyer to see if your State has similar rules and to see if your settlement contains this pro rata payout language.
If Social Security did not take your workers compensation settlement into account, there could be issues – you will need to seek counsel to evaluate how to deal with this problem. I have seen some instances where a workers' compensation settlement has been reopened and the special language put in, and I have seen situations where a claimant successfully asked Social Security for a waiver of the overpayment obligation. There is also a possibility that you could file bankruptcy to discharge any repayment obligation to Socal Security.
Filed under Lump Sum Awards, Workers' Compensation issues by
Jonathan Ginsberg
Comments on How Do Workers Compensation Offsets Affect Social Security Disability Payments? »
My son receives SSD off his dad. His SSA 1099 listed a Federal Workers Comp offset as if paid to my son, but my son did not receive it as income. I don't understand. Can you help? Did his dad collect that amt, yet it is listed on my son's ssa 1099?
I,Have been approved for ssd.but ssd.is wating on a award letter from workers comp.a month has gone by havent gotten anything yet,I'am still getting wokers comp.check,and still under a doctor care,had back sugery 1-15-08,my company let me go as of 5-31-08.Will I have to wait for relase from doctor to go back to work to get a award letter.
my daughter receives a ssd check on her dad and i am not sure what offset really mean it shows she was paid amount she did not get could you explain that to me
Jonathan Ginsberg your clarity on this subject is the best I've seen anywhere!! I've been trying to get answers from SSI for two months. I finally got the 80% of my earnings before being disabled figured out. : / I have some questions for you. I hope you can help me, I need to get back to my attorney with an answer.
My average weekly income prior being disabled was $510.99 weekly or $2,043.96 monthly. 80% is $1635.18.
The order by worker's comp was $223. weekly for 162.5 weeks.
The biggest question I have is whether I should take my payment from worker's comp. weekly or in a lump sum? I am on SSDI, so all that applies with that is effected.
If I'm getting $1221. in SSDI and $892. in Worker's Comp monthly, totally $2113. Based on SSI's formula and my 80% average prior being $1635.18… and the difference between the total of both incomes minus my average. SSDI will reduce my payment by $477.83 a month. I think???
If I get a LUMP SUM payment based on weekly payments of $223. for 162.5 weeks totally $36,237.50 MINUS fees I'd get a LUMP SUM check for $29,758.05 for 134.7 weeks. Is the same formula used for weekly payments and a lump sum payments if the order states weekly payments? What formula would I use if different? How would I calculate this?
Would my payments still be reduced by $477.83 a month for 162.5 weeks or something else?
Am I calculating this right? Anyone!!! If you can email me or know the answers to my questions please respond. I have trouble finding the answers when I return to these things, but I'll try my hardest.
i was injured at work and am drawing ssd. soon i will be in court. the attorney is asking 120,000 dollars, of this i will recievr 90,000.00 ssd says i have to pay workmans comp back out of my monthly check. how much and why do i have to pay workmans comp for being hurt
kim mehaffey
Dear Mr. Ginsberg,
My son receives SSD on his dad. His 1099 showed 90% of money paid to Workers Comp offset and my son only got less than 10% of total. I don't really understand and wonder who gets worker comp offset? Should my son receives the workers comp offset as well? Looking forward to hearing from you.
Thanks you very much for reading!
Jen
Jonathan Ginsberg your clarity on this subject is the best I've seen anywhere!! I've been trying to get answers from SSI for two months. I finally got the 80% of my earnings before being disabled figured out. : / I have some questions for you. I hope you can help me, I need to get back to my attorney with an answer.
My average weekly income prior being disabled was $510.99 weekly or $2,043.96 monthly. 80% is $1635.18.
The order by worker's comp was $223. weekly for 162.5 weeks.
The biggest question I have is whether I should take my payment from worker's comp. weekly or in a lump sum? I am on SSDI, so all that applies with that is effected.
If I'm getting $1221. in SSDI and $892. in Worker's Comp monthly, totally $2113. Based on SSI's formula and my 80% average prior being $1635.18… and the difference between the total of both incomes minus my average. SSDI will reduce my payment by $477.83 a month. I think???
If I get a LUMP SUM payment based on weekly payments of $223. for 162.5 weeks totally $36,237.50 MINUS fees I'd get a LUMP SUM check for $29,758.05 for 134.7 weeks. Is the same formula used for weekly payments and a lump sum payments if the order states weekly payments? What formula would I use if different? How would I calculate this?
Would my payments still be reduced by $477.83 a month for 162.5 weeks or something else?
Am I calculating this right? Anyone!!! If you can email me or know the answers to my questions please respond. I have trouble finding the answers when I return to these things, but I'll try my hardest.
I am 45 and I settled with workers comp in Feb 2008. I recieved a structured settlement of $100,000 over 15 years, which is $650 a month and a lump sum settlement of $78,768 after attorney fees.In the settlement papers they broke it down like this: $78,768 spreaded over my life expectancy of 33.13 years which is 397.56 months. This would be $198.13 per month. I was just approved for SSD, so they will deduct $198.13 from my benefits for the lump sum settlement. They base it on your age and your life expectancy. If your looking at getting around $29,000 you probably want be able to tell that they even off-set it. The settlement papers will have it broke down for you. Hope this helps.
Have been on ssd since 2006 mainly due to severe back issues
I had a claim in with owcp (federal) for permanent impairment since 2003 – I recently received a check in the mail for $9,000 saying it was code 9 impairment payment and dated march 2009 through aug 2009 – that is all it says – since this was an impairment that was not my reason for total disability – does it affect my ssd and why did they put the 2009 dates for an injury that reached mmi in 2003 – they were just a slow pay as with many federal owcp claims- thanks for any advise you may offer
forgot to mention above that 2003 mmi impairment rating was for my hands – not my spinal issues which caused total & permanent disability – thanks