Alternative Compensation & Offsets

Social Security Disability, Supplemental Security Income, and Workers' Compensation

It is possible for an injured worker to qualify for a combination of SSDI benefits, SSI benefits, and Workers' Compensation wage loss replacement benefits.

Workers' Compensation benefits will be offset against SSDI benefits if the two benefits added together (SSDI plus Workers' Compensation) equal more than 80% of the injured workers "average current earnings" as determined by the Social Security Administration.

SSI is completely income based — SSA will look at the income of the entire household, including workers' compensation benefits, as well as any household assets to determine eligibility.

Accordingly, it is essential that an injured worker report all Workers' Compensation wage loss replacement benefits (increases and decreases), to the Social Security Administration to determine whether there is an increase or decrease in offset in order to prevent overpayment or underpayment of SSDI awards. Injured workers who do not report increased Workers' Compensation benefits to the SSA will usually develop an overpayment of Social Security benefits. The injured worker would then have to reimburse the Social Security Administration.

Social Security Disability Overpayments

Injured workers confronted with notices of overpayment may appeal those findings and request continuation of Social Security benefits pending a determination. It is important to know that in such case and, if the offset and overpayment are correct, continuing additional payments at the same amount will increase that overpayment. Injured workers may apply for a waiver of overpayment if they were not comfortable in the development of the overpayment. If an injured worker notifies the SSA of an increase in compensation rates and the SSA takes no action the overpayment would not be the injured workers fault. However, the overpayment would still occur even though it resulted from no fault of the injured worker unless the injured worker is able to demonstrate that repayment would represent a financial hardship. It is difficult to demonstrate financial hardship. It is required that an injured worker fully discloses all assets and income as well as a full accounting of all debts and routine household expenditures in order for that determination to be made. It is usually better to contact the SSA and workout a repayment schedule to limit the extent of the hardship created by its repayment.

Social Security Disability/SSI Benefits/Workers' Compensation Benefits/Limited or Restricted Work:

It is possible for an injured worker to qualify for a combination Workers' Compensation wage loss replacement benefits, Unemployment benefits, SSDI, SSI and be able to perform limited work that is not considered to be substantial and gainful under SSDI rules (earnings from work limited to $1,090.00 per month under current rules). Workers' Compensation benefits will also be considered relative to eligibility for SSI benefits (SSDI and Workers' Compensation combined must be less that the SSI maximum, currently $810.00). In rare cases receipt of SSDI and Workers' Compensation combined do not rule out eligibility for SSI benefits. In even more rare cases receipt of SSDI, Workers' Compensation, and limited income from limited work may not rule out eligibility for SSI benefits. A determination of such offsets requires careful review and consideration and exists as a result of the incentive the Social Security Administration and the Worker's Compensation Board and Law provide for return to work.

Social Security Disability/SSI Benefits/Workers' Compensation Benefits/ Unemployment Insurance

At present there is no offset taken from SSDI for receipt of Unemployment benefits. However, there is proposed legislation before Congress to change the current rules. There is no Workers' Compensation offset taken for a partially disabled claimant for receipt of Unemployment benefit. In the event that unemployment benefits and Workers' Compensation benefits together exceed the earnings used to calculate unemployment benefits Unemployment benefits may be reduced by that amount.

Return To Work After Being Approved For SSDI

Injured workers are required to notify the Social Security Administration in the event of return to work, receipt or change in Workers' Compensation benefits following approval of a Social Security claim. The amount of gross wages received after being approved affects your right to continued Social Security Disability benefits.