Workers Compensation May Affect Your Disability Benefits

If you receive workers’ compensation in addition to your Social Security Disability Insurance (SSDI) benefits, your SSDI benefits might be reduced.

Depending on which state you live in, workers’ compensation is either provided by private insurance companies or a state fund. Workers’ compensation benefits are paid to a worker because of a job-related injury or illness.

Social Security will reduce your SSDI benefit payment if the sum of your SSDI benefit plus your worker’s compensation benefit exceeds 80 percent of your pre-disability average income. In other words, your monthly Social Security disability benefits, including benefits payable to your family members, are added together with your workers’ compensation benefits and if the total amount of these benefits exceeds 80 percent of your average earnings (before you became disabled), the excess amount is deducted from your Social Security benefit.

Example:

Phil, in San Marcos, California, earned $6,000 a month before he became disabled. Phil, his wife, and two children would be eligible to receive a total of $2,500 a month in Social Security disability benefits. However, Phil also receives $3,000 a month from workers’ compensation. Because the total amount of benefits Phil would receive ($5,500) is more than $4,800 (80 percent of $6000), Phil’s family’s Social Security benefits will be reduced by $700.

If your SSDI benefits get reduced because of workers’ compensation, your SSDI benefit will be reduced until the month you reach age 65 or the month your workers’ compensation benefits stop, whichever comes first.

Workers’ compensation is not the only public disability payment that may affect your Social Security benefit. Any disability payment that is paid by a federal, state or local government will affect your SSDI benefit payment. This includes civil service disability benefits, state temporary disability benefits and state or local government retirement benefits that are based on disability.

Disability payments from private sources, such as private pension or insurance benefits, do not affect your Social Security disability benefits.

If you are disabled and unable to work, you may be entitled to Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits. Applying for Social Security Disability or SSI can be a long stressful experience. At Jorgensen Law, we have many years of experience in helping disabled individuals win their disability cases. We are familiar with all the rules and regulations that govern the Social Security Disability and SSI programs. Your chances of winning your disability case are much higher when you are represented by an experienced disability attorney. We have helped over 90% of our clients win their disability claims.

If you have been denied disability benefits, don’t give up. For experienced legal representation and an aggressive pursuit of your SSDI or SSI claims, contact Jorgensen Law. For assistance, schedule a free consultation at our office by calling (866) 587.9176.

Representing SOCIAL SECURITY DISABILITY and SSI claims in the following counties and cities: San Diego, Orange County, Los Angeles, Riverside, and the Inland Empire.  In San Diego, we specifically work with Fallbrook, Carlsbad, Chula Vista, Coronado, El Cajon, Escondido, Imperial Beach, La Mesa, La Jolla, Lemon Grove, National City, Spring Valley, Vista, San Marcos, Oceanside, Poway, Rancho Bernardo, San Diego, San Marcos, Santee, Ramona, Murrieta, Moreno Valley, Corona, San Bernardino, Fontana, Ontario, and Imperial Valley.