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Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 11168
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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I am on social security disability. I also am on workers

Customer Question

i am on social security disability . I also am on workers comp. they want to settle.How does it effect my ss benefits if i do ?
Submitted: 3 months ago.
Category: Social Security
Expert:  Lane replied 3 months ago.

Hi. My name's Lane.

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Social Security requires that SSDI benefits be reduced so that the total monthly amount that a disabled worker receives is no more than 80% of the amount she earned when she was fully employed.

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When a someone receives more money than the applicable limit in any given month, then Social Security offsets SSDI in the amount required to bring the total back down to the applicable limit.

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This happens more often to those who earned lower incomes when they were working, because their applicable limits are lower and more easily exceeded once the worker starts to receive SSDI and worker’s compensation.

Expert:  Lane replied 3 months ago.

They have several ways of converting a lump sum workers' comp payment into a monthly benefit for the purposes of calculating an offset, and it will take a close look at the language of the settlement document when it is offsetting a lump sum.

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In the most basic method, Social Security converts the lump sum to a monthly amount by dividing the lump sum by the periodic worker’s compensation payment that the person had been receiving, and then applying the SSDI offset for the resulting number of months.

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Please let me know if you have ANY questions at all, before rating me

But if this has helped, and you don’t have other questions, I would appreciate a positive rating (using those stars on your screen – and clicking submit) … That’s the only way JustAnswer will compensate me for the work here.

Thanks,

Lane