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Does workers' compensation affect SSD benefits?


Texans who are injured, ill or suffer a condition that makes them eligible to receive Social Security disability benefits but are also receiving workers' compensation or other disability payments need to be aware of the rules for how this might affect those benefits. If there are payments from a private source like insurance or a pension, it will not have an influence on SSD. However, if there are workers' compensation benefits or other forms of public disability, it might reduce the amount the claimant can get through Social Security. Veterans Administration benefits, state and local benefits and Supplemental Security Income cannot be reduced.

When a worker is injured or becomes ill from the job, he or she can get workers' compensation. There are several different ways this can be paid including from federal or state agencies, the employer or via insurance companies. If disability payments are made from federal, state or local government and they are for conditions that were not job-related, this too can affect disability through Social Security. When a person is receiving workers' compensation or other disability payments as well as Social Security disability, federal regulations dictate that the amount that is received is not allowed to go beyond 80 percent of the person's average current amount earned prior to the disability.

To calculate the reduction, disability benefits are added to the other benefits that the person is receiving to come to a total. An example might be a person who earns an average of $4,000 per month. That person and his or her family can get $2,200 in Social Security disability. If there is also workers' compensation coming to $2,000, the amount will surpass 80 percent of the current earnings and will have to be reduced until it meets the requirements. In this example, it will be $3,200. The individual's circumstances will determine how the average current earnings are calculated.

The Social Security Administration must be informed if there are any changes to the amount that is received in workers' compensation or other payments. Those who get a lump sum in workers' compensation or other disability must inform the SSA of this. Those who are getting workers' compensation or another form of disability must know about how their SSD benefits might be reduced. For any questions and assistance regarding this or any other matter related to disability, a legal professional can help.

Source: ssa.gov, "How Workers' Compensation And Other Disability Payments May Affect Your Payments," accessed on Dec. 17, 2016

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