If your work injury means you may never go back to your old job, you might need more than one kind of benefit to get by. Workers’ comp and Social Security Disability can work together, but the rules for combining them are tricky and the mistakes are expensive. Philly Injury Lawyer helps clients with both, and we plan them together so you keep as much as possible.
Can You Get Both?
Yes. Workers’ comp comes from your employer’s insurer. Social Security Disability Insurance (SSDI) comes from the federal government, based on your work history. You can qualify for both at the same time.
The Offset
When you receive both, Social Security may reduce your SSDI so that your total combined benefits don’t exceed 80% of your average earnings before you became disabled. This is called the workers’ comp offset. The Social Security Administration explains the offset here.
The offset generally ends when you reach full retirement age or when your workers’ comp ends.
How Settlements Can Reduce the Offset
If you settle your workers’ comp claim with a lump sum, Social Security will still apply the offset, but how the settlement is written matters a lot. A settlement can spread the lump sum over your expected lifetime, which can greatly reduce the monthly offset. A poorly written settlement can cost you thousands over the years.
Medicare and Your Settlement
If you’re on Medicare, or will be soon, your settlement may need to account for future medical care related to the injury. Getting this wrong can put your future coverage at risk.
SSI Is Different
Supplemental Security Income (SSI) is a needs-based program. Workers’ comp benefits count as income for SSI and can reduce or eliminate it.
Need Help With Both Claims? Call Us
We also help clients with Social Security Disability in Philadelphia. Call (215) 735-4800. We Win or It’s Free®.
Frequently Asked Questions
Should I apply for SSDI while I’m on workers’ comp?
If your doctors expect you to be unable to work for at least a year, applying early often makes sense, because SSDI decisions take time.
Does a workers’ comp settlement stop my SSDI?
No, but it can affect the amount. Proper settlement language can reduce the effect on your monthly SSDI check.
Are SSDI benefits taxable if I also get comp?
Part of your benefits can become taxable when the offset applies. See Are Workers’ Comp Benefits Taxable?
Pennsylvania Law in Plain English
Federal law caps combined Social Security Disability and workers’ comp at 80% of your average earnings before disability. The Social Security Administration’s guide explains how the reduction is figured and how lump-sum settlements are treated.
