An injured worker – particularly one with a serious injury – can sometimes qualify for both workers’ compensation benefits and Social Security Disability Insurance (SSDI) benefits. However, the government imposes an offset that reduces the available public benefits that someone can collect at the same time.
Generally, the combined total of someone’s SSDI and workers’ comp cannot exceed 80% of the worker’s “average current earnings” before the disability began, based on their record of earnings. If the combined total benefits exceed that 80% limit, the worker’s SSDI will usually be reduced accordingly. Florida law does allow, however, for a reverse offset arrangement that would reduce the workers’ comp check instead of the SSDI payment. However, both parties must agree on that plan in writing.
How is the SSDI/workers’ comp offset calculated?
If a worker’s average monthly earnings before injury were $4,000 per month, 80% would be $3,200. If the worker receives $2,600 per month in workers’ comp benefits and would ordinarily qualify for $2,000 per month in SSDI, the combined amount would be $4,600. Since that exceeds the 80% limit, either the worker’s SSDI or workers’ comp check would be reduced by $1,400 per month so that the combined total is no more than $3,200. The SSDI offset generally ends either when the workers’ comp payments end or the recipient achieves full retirement age.
Will a lump-sum workers’ comp settlement avoid the SSDI offset?
In general, the offset will be imposed even with a settlement. The lump sum will be prorated and treated as replacing periodic payments over a designated period as written in the settlement agreement. It’s also significant to note that Social Security is not required to accept language in a settlement that appears designed to avoid the offset and benefit reduction.
The offset often makes injured workers question whether they should delay filing an SSDI claim until their workers’ comp claim is settled. However, waiting may not prove advantageous, especially since SSDI applications can take a considerable amount of time and delays in filing can limit retroactive payments and make medical evidence harder to secure. Having experienced legal guidance can make it easier to decide how to approach the situation.