Workers comp and Social Security disability can both pay you at the same time. Social Security then adds them up. If the total runs past its limit, it trims the SSDI check.
Workers comp and Social Security disability: the 80% rule
The limit comes from Social Security. Your comp and SSDI together cannot pass 80% of your average current earnings before you became disabled.
The total includes your family. SSDI paid to your spouse or children on your record counts too. Anything over the limit comes off the Social Security side.
If you have not filed for SSDI yet, start with workers comp vs disability. It covers who qualifies and which to file first.
A worked example from Social Security
Social Security gives this example. Before the disability, a worker earned $4,000 a month. The family's SSDI would be $2,200 a month. Comp pays $2,000 a month.
Together that is $4,200. The limit is 80% of $4,000, which is $3,200. So the family's SSDI is cut by $1,000 a month.
Your comp check does not change. The cut lands only on SSDI.
When the cut ends
SSDI stays reduced until you reach full retirement age or until your comp stops, whichever comes first.
It used to end at 65. For offsets from December 19, 2015 on, it runs to full retirement age instead.
So when comp ends, tell Social Security right away. Your SSDI should go back up.
Lump sum settlements and the offset
A settlement does not escape the offset. Social Security spreads the lump sum out as if it were paid by the week and cuts SSDI against that rate. Tell Social Security right away when you get one.
How the deal is written matters. An award can set its weekly rate by your life expectancy and a lower rate means a smaller monthly cut. Read about settlement offers before you sign.
States that cut comp instead
In some states the comp check is the one that gets cut, not SSDI. Social Security calls this reverse offset, also known as reverse jurisdiction.
Retirement can also cut comp. In Pennsylvania, comp can be offset for 50 percent of Social Security old age benefits.
What does not count and what to report
Some checks do not reduce SSDI. The list includes VA benefits and SSI.
SSI is a separate program. It pays people with little or no income or resources, so a comp check can count against it.
Tell Social Security when comp starts, stops or changes. Any change is likely to change your SSDI. The number is 1-800-772-1213.
If comp ends your working life, read about permanent total disability.
People also ask
Can I apply for SSDI while my comp claim is open?
Yes. You can file for both. Social Security will ask about your comp checks.
Does a settlement stop the offset?
No. Social Security spreads a lump sum over time and keeps cutting SSDI against it. The way the deal is written can make the cut smaller.
Will comp cut my retirement check?
Social Security does not cut retirement for comp. But some states, such as Pennsylvania, cut the comp check when you draw retirement.