If you are receiving both workers' compensation and Social Security Disability (SSD) benefits, then either your workers' compensation benefits or your SSDI may be reduced. However, there are a few steps you can take to minimize the effect of one on the other. Here are three measures that can help:
Make a Move for Retirement Benefits
The first thing you should know is that your workers compensation offset only applies for SSD benefits, but not for Social Security retirement benefits. This presents a "loophole" you can exploit if you are nearing the age of retirement. For example, if you are 61 years old and you have been injured on the job, you can apply for early retirement. That way, you can receive the full amounts from both the Social Security Administration (SSA) and workers' compensation insurance.
However, don't forget that early retirement benefits are usually lower than what you would receive if you waited until your full retirement. Therefore, carry out an expert analysis to determine how much money you are losing by applying early, and determine whether it is worth it.
Exclude Some Expenses
The SSA doesn't use the gross amount of workers' compensation benefits. It allows you to deduct some applicable expenses first. For example, you may deduct these expenses;
Therefore, the key is to maximize these expenses by calculating them properly. In many cases, you need the help of an experienced attorney to do the calculations. Of course, you shouldn't make up anything because you will be required to prove them, for example, with documentation.
Spread Out the Payments
The third trick you can try is to spread out your workers' compensation benefits instead of getting it as a lump sum payment. When you spread out the benefits, the effective monthly amount becomes too low to have a significant or any effect on your SSD checks.
As usual, you will have to meet a few conditions to benefit from this trick. One condition is that the original documents for your workers' compensation settlement must specify that you will be receiving the benefits as fixed regular payments over a specific period. Such a statement is known as amortization provision, and without it, your workers' compensation settlement will still affect your SSD benefits.
As you can see, these issues are complicated, and you can easily lose money if you take the wrong route. Therefore, consult an experienced attorney like Williams Williams & Bembenek PC to help you come up with a feasible method for safeguarding your SSD or workers' compensation benefits.
Share29 March 2016
When I was injured in a slip and fall accident a few years ago, my family and friends had a hard time relating to the things I was going through. While some people thought that my decision to file a lawsuit was frivolous, others were under the impression that I would walk away as a millionaire. Their lack of personal experience with this type of legal problem left me feeling alone during one of the most difficult times in my life. That is why I decided to start this blog so that accident victims from all over would have somewhere to come to get the information and support that they need. I truly hope that this page can be that place for you.